After consultations with Soekarno, Salim at Prapat, Sjahrir
accepted an invitation by Drees for informal discussions in
Batavia on January 18th. The invitation was accepted because the
party at Prapat, although well looked after and comfortable, had
received no information of developments following the military
action and because Sjahrir's conversations could have no
significance since he held no official office. A similar
invitation was offered to Hatta who refused. Sjahrir described his
discussions as pleasant but limited.

He is now free in Batavia.

2. Drees and Michiels and their staffs left Batavia for Holland
yesterday having failed to make any progress towards a Federal
Government.

3. It would appear that the Dutch are facing considerable
difficulties.

(a). Guerilla resistance is stronger than themselves and the Dutch
are finding themselves short of troops to control the situation.

(b). The Republic are refusing to co-operate and will not accept
B.I.O. decree. [1] The Dutch have failed in overtures to Sjahrir,
Hatta, Supomo, Leimena, and the Sultan of Djokjakarta.

(c). Federalists have stalled and proved unwilling to form a
Government without the Republic. They are reported to have told
the Dutch that they wish to consult with the Republicans'
authorised representatives of the State. Present Dutch headaches
are therefore:

(a). The release of Soekarno
(b). The military situation
(c). The restoration of the Republic
(d). The political vacuum prior to the elections in Indonesia.

5. It is known that the Dutch are dissatisfied with reports of
foreign correspondents.

6. The Republican delegation in Batavia has asked for a decision
on its previous request to visit Republican leaders.