Press and Short wave Radio quote reports from Djokjakarta that
Republican Government has indicated its preparedness to join in
establishment of a democratic sovereign United States of
Indonesia.

2. At the same time there are disturbing press reports from
Batavia to the effect that the Netherlands Government will reserve
its right to freedom of action if cease-fire agreement is not
reached shortly. This seems to imply clear threat that Dutch will
resort to another police action if their conditions are not met.

3. In the absence of any reports from you in the past few days we
are not in a position to form an independent judgement on these
reports or to follow recent trends in the negotiations. It may be
that the Republican Government has decided of its own free will to
yield to the pressure of events, and that in the circumstances its
decision is the best one open to it. We would, however, be
disturbed at any suggestion that the decision has been reached
under duress, and particularly if it should be made to appear that
the Committee had identified itself with a settlement reached in
such fashion and embodying apparently no concessions on the part
of the Dutch. I know that you yourself will have done everything
practicable to protect the Republican position, but this alone
will not offset possible Indonesian disillusionment with the
machinery of the United Nations and also with Australia. It might
become desirable for Committee to issue at an appropriate stage a
public statement protesting against the behaviour of the Dutch and
regretting Committee's inability to persuade them to adopt a more
flexible attitude. Decision as to whether or not this will become
necessary is primarily a matter for your own judgement, and we
should like your views on this and on the latest developments
generally.