My telegram K 186.

Stikker did not return to Djokjakarta yesterday morning and his
party was withdrawn in protest against the submission of
Republican reply (see my telegram K 187). The Dutch say this reply
should have been discussed with their representatives in
Kaliurang.

2. Cochran discussed the Republican reply with me before
transmitting it to the Netherlands Delegation. We agreed that it
was reasonable and that its delivery should not complicate
matters. Even allowing for Dutch super-sensitiveness it may be
assumed that the real Dutch objections were either to the
concessions Stikker made in his informal talks or to the prospect
of resuming formal negotiations on the basis of the Cochran plan.

3. Stikker was reasonable about the Republican reply and it was
soon apparent that Beel was at the bottom of this afternoon's
trouble. Beel claimed his Government has been insulted and
directed the breaking off of negotiations. This suggests that the
Crown Commissioner does not relish the possibility of a reduction
in his authority. Cochran has informed me most confidentially that
he sought an interview with Beel in which he accused him of
endeavouring to break down negotiations on a trifling excuse and
said that if this happened he would cable his Government to
confirm that there were sections here seeking another police
action.

4. As a result of Cochran's unrestricted and favourable reports
from Stikker's party the Dutch have withdrawn their objections to
the resumption of negotiations. The party will return to
Djokjakarta to-day to continue discussions which are said to be
progressing favourably but Stikker himself has explained that
politically it is impossible for him to return. However, he will
not go back to The Hague before Wednesday and may stay here a day
or two longer.

5. Stikker has accepted Hatta's explanation that the letter was
prepared and signed prior to the arrival of Stikker's party in
Republican territory, that transport difficulties explain the
delay in its submission, and that Hatta did not give the letter
further thought after signing it. [1]