Yesterday afternoon (December 4th) Cochran returned to Batavia
with Hatta, Natsir and Roem for last minute talks with the Dutch
Ministers. Contrary to paragraph 4 of my telegram K. 201 [1],
Cochran had carried to Djokjakarta an invitation for this visit
which he had not disclosed to anyone here.

2. The Ministers held private discussions with Hatta regarding the
powers of high representative of the Crown, particularly in
relation to the use of the Dutch Army. No other Republicans took
part in the discussions. Hatta maintained the attitude set out in
paragraph 3 of my telegram K.201 and argued that the provisions of
his aide-memoire would only give high representative of the Crown
power to use Dutch forces in cases where the Interim Federal
Government either concurred or was undecided. Hatta also
maintained that the Interim Federal Government should control the
Federal forces. The Dutch cannot accept these points which they
regard as inconsistent with their sovereignty and with Article 1
of six additional Renville principles. [2]

3. This morning the Netherlands Ministers left Batavia to report
to their Government and Hatta and his party returned to
Djokjakarta.

4. Following last night's talks with Hatta, Stikker admitted to
the Committee of Good Offices that his Mission had failed and that
there was no immediate prospect of an agreement with the Republic.

He said that the Netherlands would proceed without the Republic,
to the formation of an Interim Federal Government by about
December 15th. He has insisted that the bill to establish Interim
Government contains an additional clause which will leave the door
open for the Republic to join. This clause will permit provisions
of the bill to be modified without reference to Parliament in
accordance with any subsequent agreement with the Republic.

5. The Prime Ministers of the States of East Indonesia,
[Pas]undan, have told Hatta that they will only participate in the
proposed Interim Federal Government providing that there is a
specific provision that an action will not be taken against
Republic. It remains to be seen whether they, and particularly the
former, will maintain this stand in the face of strong Dutch
pressure.

6. The Committee will now report to the Security Council in Paris
the results of direct negotiations. It will delay this report at
least three days to give the Ministers an opportunity to consult
their Government. Hatta intends to report to the Committee in a
few days on direct talks.