You will have seen Critchley's telegrams K.155, 156 and 157
reporting on latest United States proposals submitted to
Netherlands and Republican delegations. Counsellor of United
States Embassy here has called at the Department to explain that
American member of Good Offices Committee, with full concurrence
of State Department, decided that, in view of deterioration in
position of Republican Government, submission of new proposals was
matter of urgency. Americans had learned that new Netherlands
proposals at present under consideration were likely to be quite
unacceptable to Hatta in view of strong pressure on the latter
from Communists and Left Wing Socialists. Americans accordingly
decided it was necessary to get in first with proposals which they
believe have a chance of acceptance by both sides as a basis for
settlement. [2]

2. It is clear from this that Americans agree with our view that
present moderate Republican Government is doomed unless Hatta is
able in very near future to claim credit for reasonably
satisfactory settlement with the Dutch; and that Dutch are
accordingly faced with clear alternatives of seeking early
compromise with Hatta on the few outstanding points or of having
to deal with a Communist-led Republic.