INDONESIA

I gather that the latest Beel proposal [1] which will be announced
on Saturday will include the suggestion that transfer of
sovereignty should take place on 1st May, 1949 and that United
Nations Commission and President of the Republic should come to
The Hague to negotiate to this end.

2. Initial United Kingdom reaction is that proposal is very
foolish rather than sinister and is bound to get short shrift from
the Security Council. Quite apart from Republican opposition the
United Kingdom both here and at The Hague has been insisting with
the Dutch that nothing short of compliance with the Security
Council resolution [2] will be accepted.

3. Reports here from Batavia indicate more Federalist support for
Security Council resolution and further reduction of their
differences with the Republicans.