Your 1028. Indonesia.

Understand Netherlands Foreign Minister is in Washington, where he
will discuss Cochran's proposals with State Department. You should
communicate the following informally to the State Department at
first opportunity.

2. Critchley reports from Batavia that Hatta is holding his
position well and is assured of strong support within KNIP and
Army. Nevertheless, he will have to proceed cautiously for the
time being: any immediate attempt to re-open negotiations or to
take strong line with Communist elements would probably lead to
major clash, whereas with careful preparation Government may be in
a stronger position in a few weeks' time. Critchley believes that
Hatta may not therefore be able to accept the American proposals
for some weeks. Meanwhile, however, Republican delegation can
accept the proposals, with reservation, as a basis for discussion.

3. United States Government will appreciate that in this delicate
situation Netherlands Government could greatly assist by making a
conciliatory gesture. One thing they might do, for example, is to
hand back to the Republicans the hospital and other premises at
Batavia which they recently took over, and to restore previous
immunities 10 Republican delegation. This would remove an
immediate cause of anti-Dutch feeling and would make for improved
atmosphere. [1]