The Committee has telegraphed the following report to the Security
Council this evening, Friday. [1]

Begins: 'Pursuant to instructions to keep the Council informed of
developments in negotiations between parties to Indonesian
dispute, the Committee of Good Offices has the honour to report as
follows; at Meeting of Steering Committee of Conference on twenty-
third July Republican Representatives stated the Conference has
been facing complete standstill of political negotiations for the
last eight weeks and that the Netherlands Delegation had
categorically refused to discuss the Australian - United States
proposals [2] of overall political settlement and had not offered
an alternative with which to overcome the stalemate. The
Republican Representative recalled that on the twenty-ninth his
Government had stated it considered the Australian - United States
proposals as the only means capable of resolving the deadlock and
placed its hope for successful settlement on the continuance of
negotiations on the basis of those proposals. Therefore the
Government of the Republic was of the opinion that after
expiration the present period of negotiations in Kaliurang o[n]
twenty-third July return to Batavia of Republican Delegation would
not serve any useful purpose. Only those members of the Delegation
required for work related to the implementation of the Truce
Agreement would leave for Batavia next week. The Republican
Representative also pointed out that the Netherlands efforts to
establish an United States of Indonesia and a Union outside of the
Republic were being intensified, an action which he considered
clearly contrary to the Renville principles.

The Netherlands Representative maintained there was no question of
standstill and expressed regret that the Republican Delegation
should have arrived at this conclusion. He explained 'that for
certain reasons beyond the Delegation's control mainly necessity
for awaiting formation of new Netherlands cabinet it had not yet
been possible to obtain fresh instructions and therefore to make
any new proposals. He agreed discussions regarding implementation
of Truce agreement and possibly certain other matters should be
continued, while other subjects which could not profitably be
discussed at present should be left in abeyance, Netherlands Rep.

reaffirmed that the purpose of Netherlands Government was to form
an United States Indonesia for the whole of Indonesia.

In as much as a compromise overall plan put forward on tenth June
by two Representatives on the Committee has so far not succeeded
in providing basis for discussion acceptable to both parties, the
Committee does not believe that the discussions looking toward
political settlement suspended since end May can well be resumed
until one party or other comes forward with complete and concrete
programme for establishment of United States of Indonesia based
upon substantial concessions to point of view of the other party.

It would seem that such programme would need to deal at least with
entire range of issues covered by Australian - United States
proposals.' Ends...