5 January 1949, 8.30 a.m.

IMMEDIATE RESTRICTED

Following is summary of the present military situation from our
source.

Begins:

The Dutch have apparently completed operations for occupying the
towns of importance without having fought any battle worth
mentioning. This results from the tactics adopted by Republicans.

At the same time the Republican Headquarters in Java has reported
to Colonel [Hi]dayat, Commander of the Republican Forces in
Sumatra, that the Republican troops have finally achieved plans
for the dislocation of guerilla units throughout Java.

Spoor's order of the day calling for cessation of hostilities [1]
is interpreted by the Indonesians as the closing of one phase in
the war and the opening of another which the Dutch described as
mopping-up operations. Indonesian office believe that this latest
Dutch move was only directed as a gesture towards the S.E.C.

Council, for according to the Republican defence plan, the real
fighting is only to start after the Dutch have completed their
town occupation operations, and Republican troops will commence
continuous attacks on the Dutch-held positions. The Sumatra front
has quite a different aspect. The Dutch here have not yet
completed their operations. Rains have slowed down their advance
and Acheh has not been touched. In areas where the Dutch have
succeeded in occupying provincial towns, and thus have disposed of
their troops, as in Western Sumatra, Tapanuli and part of Eastern
Sumatra, developments have followed practically the same pattern
as in Java. Ends.