Our 1912. [1]

The Republican Government has now approved the proposals contained
in our 1913. [2] They have indicated, however, that these latest
proposals are the limit of their concessions and in event of
rejection by Dutch negotiations will reach deadlock.

2. Critchley has advised that it is by no means certain that the
proposals will be approved by The Hague where they are at present
being discussed. He anticipates Dutch reluctance to agree to the
return of the entire residency of Djokjakarta and in particular
the airfield at Maguwo.

3. There is the danger at this stage that as the General Assembly
is in its last week the Dutch decision will be postponed in the
hope that this will prevent effective action by the Assembly thus
leaving the Dutch in a much stronger position. The Dutch could
well argue that informal discussions are being held and that
Assembly action would be premature or even harmful.

4. It is imperative that the Netherlands should agree to the
proposals and the Foreign Office should ensure that every effort
is made to obtain immediate and unconditional Dutch approval.