Doengoes, the first place to which the Communists fled from
Madiun, and Ponorogo, were retaken by Government forces on October
2nd. Communist leaders supported by one battalion are reported to
have taken refuge on the slopes of Mount Willis.

2. Large blocks of country are still in the hands of the
Communists. These are for the most part mountain areas to the
South East and South West of Madiun; also an area around
Poerwodadi and an area along the South coast. Government troops
are pressing forward with not more than occasional resistance and
sniping.

3. Communist action against the civilian population appears to
have been much worse than was originally suspected. A number of
police, government officials and Masjumi are known to have been
murdered and many are reported missing. There are no reports of
casualties among the Chinese community.

4. The Government and the political parties are showing a marked
tendency to the right. This trend is causing concern to liberal
elements such as Sjahrir. Anticommunist feeling is prompted both
by the atrocity stories and by resentment against the breaking of
the unity of the people. The hardening attitude of the Government
is reflected in two recent Presidential decrees:

(a) The Republican news agency Antara has been directed to make no
criticism of American policy.

(b) As from October 1st any expression of agreement with the
actions of the rebels will be regarded as a criminal offence
punishable by imprisonment up to ten years.

5. The Batavian Army Information Service has issued on October 6th
a com-munique without quoting sources about the military situation
in the Republic. It is a clever mixture of truth and fiction
creating an impression that there is chaos in the Republic and
apparently designed to prepare the way for Dutch military action.

Republicans feel there is a distinct possibility of a police
action. The disposition of troops along the status quo line is
threatening and reminiscent of, though more concentrated than,
before the action of July 1947.

6. The G.R.R. at a meeting on October 3rd decided to create a new
political party, the 'Partai Murba', or the Proletariat's party
whose basic policy would be anti-fascist, anti-imperialist and
anti-capitalist.