Your telegram No. 267. [1] The arguments of paragraphs 1 and 2 of
your telegram are most important. Political and economic gestures
now from the Netherlands would greatly strengthen Hatta's hand
against the Communists and would pay big dividends if the Dutch
are sincere about wanting a settlement.

2. Unfortunately a stronger Dutch tone appears to be emerging in
Batavia. The official public spokesman has expressed the following
opinions:

(1) (a) If Hatta is sincere he will crush the Communists.

(b) If he is sincere but is unable to crush the Communists on his
own he will call on help from Spoor.

(c) if he is insincere Dutch military action is desirable in any
event.

(2) The Netherlands will not withdraw their eviction orders to
Republicans in Batavia.