According to a confidential report from Hatta, the Government
campaign against the Communists is proceeding satisfactorily. It
will take a few more days to get to Madiun, but the greatest
danger is felt to be behind the Government lines. The Communists
are avoiding frontal fighting and are spreading out and dispersing
in the villages. They are then making things difficult by cutting
the communications and spreading false rumours (e.g. that Sukarno
and Hatta are co-operating with the Dutch.)
2. Republican forces and Security measures have been greatly
handicapped by lack of transport. At least 200 trucks and 50 jeeps
are required urgently. There is good reason to believe that they
are available in Bangkok and it would greatly assist in
stabilising the position of the Republican Government if the Dutch
could agree to their shipment to the Republican port of Tuban.

3. Opportunities to purchase medical, textile (especially shoes
for the Army) and paper supplies would also help the Government at
this stage.

4. Palace sources have informed me that Van Mook will present new
proposals on Friday when discussions with Federalists will have
been completed at The Hague. [1] Cochran was unaware of this,
although he admitted he did not expect The Hague's 'substantial
contribution' to be an unconditional acceptance of his proposals.

The Americans here are awaiting developments and the results of
pressure at The Hague.