Your tele 228. [1]

There has been nothing further to report since my last telegram.

[2] The Minister should be informed however that the atmosphere
here is as bad as or worse than at any other stage since the
Committee arrived in Indonesia and that the only hope of a
satisfactory solution lies in early and generous proposals by the
Dutch for an overall settlement. These proposals should not only
make an early transfer of complete sovereignty certain but should
also provide for wide powers for Indonesians in the interim
period.

2. The Committee is leaving for Kaliurang today and there may be
communication difficulties. I shall endeavour, however, to keep
you and The Hague fully informed of any significant developments.