On Friday morning Cochran took the Netherlands reply to his
informal proposals to Djokjakarta. [1] The Netherlands have not
rejected the Cochran plan as such but have proposed a number of
amendments. As far as I can learn the main objections are to the
elections and the powers of the interim government.

2. It seems likely the Netherlands would accept the conditions for
the resumption of negotiations stipulated by the Republic but have
suggested their own conditions:

(a) The freezing of Republican foreign relations,
(b) A change in the policy of the Republic, away from subversive
activities and anti-Dutch propaganda,
(c) Public condemnation of communism by the Republican Government.

3. Cochran has suggested to the Republic that it might in turn
submit its own amendments to his proposals, but the initial
reaction of all Republican authorities is that this would only
lead to further delay and eventual deadlock. [2]

4. Full consideration of the problem by the Security Council
appears necessary and indeed inevitable. We are preparing a Fourth
Interim Report of the Committee with this in mind.