Received 18 November 1948, 8.30 a.m.

INDONESIA

The following is a summary of the main points of a report in
today's A.N.P. Bulletin which it is claimed emanates from
'competent sources'.

1. Netherlands Government was yesterday drafting fresh
recommendations for continued negotiations with the Republican
Government without the mediation of the United Nations Good
Offices Committee. These would be forwarded to Stikker's advisers
who were in Batavia.

2. Netherlands Government (it was understood) was compiling a
memorandum couching in emphatic terms its attitude towards the
present situation. This would be handed to the Republican
Government shortly.

3. The Dutch visualised that new negotiations would be extremely
short.

4. The present uncertain situation could not be tolerated 'much
longer' owing to the agreement with non-Republican territories
that the interim Government would be established before January
1st 1949.

5. it was emphatically denied that any agreement had been reached
in Djokjakarta between Stikker and Hatta. All talks had been
exploratory.

6. Dutch had continually stipulated as a primary condition for the
resumption of discussions (a) immediate cessation of animate
violations of the truce (b) resumption of goods traffic between
the Republican and non-Republican areas.