Netherlands have announced that Sassen, Stikker and Neher will
form a delegation for discussions in Indonesia with both the
Republican Government and Bandoeng Federalists 'in order to attain
a final solution' of the Indonesian problem. The delegation will
be assisted by some leading members of the States-General as
observers and by some experts from the Netherlands. Other experts
may be attached to the delegation in Indonesia.

2. The delegation will arrive in Batavia Wednesday and will be
ready to proceed next day to Kaliurang where it is hoped that
Hatta will have returned from Sumatra [1] to meet them. The
observers and advisers will arrive some time later.

3. The Committee of Good Offices had intended to proceed to
Kaliurang about the end of this week at the request of the
Republic and in accordance with its usual practice of alternating
between Republican and Netherlands Territory. At the informal
request of the Netherlands this visit will probably be delayed so
that the Committee cannot be accused of interfering with direct
negotiations.

4. Instructions to the new delegation are not yet known but the
Netherlands Authorities here suggest that resumption of
negotiations will be based principally on:

(a) A preliminary demand by the Dutch for a tangible decline in
the number of incidents ('truce violations') as a proof of
Djokjakarta goodwill and the Republican Government's power within
its territory.

(b) Consideration of political points considered essential for the
Netherlands concerning the general position of the High
Representative of the Crown and particularly his powers over the
armed forces during the interim period.