INDONESIA

Your 102. [1]

1. Assume statement referred to paragraph 2 your telegram was that
made by Maarseveen in Netherlands Parliament 16th February. As
received here this statement not entirely clear. United States
Delegation are inclined to regard it as having been made possibly
for party reasons and are awaiting formal Netherlands Government
statement scheduled for today before considering their attitude.

2. While there is obviously little reason to feel optimistic about
promised Government statement, it may be better for Critchley not
to press immediately for action in sense of paragraph 3 of your
telegram as on indications here he is unlikely to make headway
with Cochran until United States have received and considered
Netherlands Government statement.

3. In Press Conference this morning Palar gave highly confident
account of Republic Military operations according to which Dutch
Forces in Sumatra and West Java were in great difficulties. He
said that he personally regretted that the Commission recommended
postponement of report. [2] There was evidence now that the
Security Council resolution [3] did not reflect the real situation
in Indonesia as the Council was not in possession of facts of the
military position. In the coming recommendations of the Commission
and the decision of the Netherlands Government, full consideration
must be accorded to military successes of the Republican Army.