Your No. K.174.

You will have realised that our line has been to put the
responsibility on the United States for persuading Dutch
reasonableness in negotiations. We have made it clear that we
would use all our influence on the Republic to accept any
reasonable terms once the Dutch had shown signs of real intent to
make an agreement.

2. We have been following this line because reference back to
Security Council have not achieved any results and American
financial and other influence is stronger than any threat of
reference to the Security Council. In that sense it is therefore
defeatist for the Committee to be drafting a report for the
Security Council, and you should do everything possible to
convince the United States representative on the Committee of his
personal responsibility in keeping the pressure on his Government
to persuade the Dutch to resume negotiations and to come to an
early satisfactory agreement.

3. In order that we can assess the possibilities of agreement and
decide at what stage we should approach the Republic, we should be
kept informed of the precise terms of any Dutch counter proposals.

These proposals have to be considered in relation to immediate
moves the Dutch might be willing to make, such as we have
suggested to the United States, including the lifting of the
blockade, a satisfactory arrangement over E.C.A.F.E. and other
matters of current interest to the Republic.

4. Please report fully De Ranitz's present personal view of the
situation.