Sub Committee 1 (K310 and K312 [1]) met again in Djokjakarta on
May 24th after informal discussions. Following is a summary of
progress report agreed upon at the meeting which will form the
basis of a Press release. [2]

1. 'The date of handing over authority to the Republican
Government depends on the period needed for civilian evacuation
(two weeks) and for Military evacuation afterwards. In this light
it is hoped that the return of the Republican Government may take
place about the middle of June.

2. Suspension of arms:

(a) Both parties will issue an order immediately to all forces in
the Residency 'to avoid all contact in arms and to cease
immediately any form of sabotage, destruction, obstruction,
undermining and subversive activity'.

(b) At a date to be determined later, after such order has been
issued, the suspension of arms will be formally announced.

Detailed statement will be included in a separate agreement.

(c) The Dutch will give the Sultan 48 hours' notice prior to
evacuating any areas or posts in the Residency so that the latter
can speedily occupy them.

(d) Direct contact between the Netherlands and the Republican
Commanders is forbidden.

(e) On receipt, U.N.C.I. Military Observers will [be requested]
[3] to observe implementation of the agreement and to assist in
preventing incidents.

3. Republican Police Force.

Agreement has been reached as to uniforms and other equipment to
be supplied, and delivery orders have already been given.

Difficulties have arisen regarding armament which will be
considered further. (On this point s'Jacob has made it clear
informally that the Dutch will not supply arms which must be
obtained from T.N.I. At the meeting, the Sultan made a
confidential statement that he considered the provision of arms
for the Republican police as 'Conditio sine qua non'. He urged an
early provision of arms and equipment in the interests of a good
transfer and quick restoration of the maintenance of law and
order.

4. Technical.

(a) Contact has been established between technical personnel of
both parties in regard to public works, railways, postal,
telegraph and telephone services. Lists of type and periodic
requirements for maintenance of these and other public utilities
are expected to be completed this week. Lists of number and kind
of road transport vehicles to be supplied will also be ready this
week.

(b) Telegraph and Radio Communication.

(1) Inter-insular and International Telegraph Communications have
been arranged;

(2) Radio Communications have been arranged between Djokjakarta
and Batavia;

(3) Foreign broadcasts will be considered further;

(c) Air Communication.

(1) K.L.M. will include Maguwo in its flight schedule if security
of aircraft and passengers is guaranteed.

(2) The use of Republican aircraft in accordance with I.C.A.D. and
V.T.R. regulations is under discussion. Republican aircraft will
probably be permitted to fly Djokjakarta-Semarang and Atjeh-Medan
routes. No agreement so far on flight between Republican Areas and
foreign countries.

5. Supplies.

Agreement has been reached regarding the supply to the Residency
of Djokjakarta of such essential commodities as rice, sugar,
petroleum, salt fish, salt, soap, textiles and medical supplies.

Full particulars will be submitted later.

6. Currency.

(a) Pending an overall settlement, Republican currency (O.R.I.)
will be legal tender in Republican areas.

(b) The use of Netherlands East Indies currency will not be
prohibited;

(c) There will be no fixed rate of exchange between the two
currencies;

(d) The Republican Government will be given technical assistance
to obtain the amount of currency required for its return to
Djokjakarta;

(e) Accounts for goods, materials and services will be settled
after the establishment of the U.S.I. between the Republican
member States and the Federal Government;

(f) A certain amount of Netherlands East Indies currency will be
placed at the disposal of the Republican Government.

(2) Since Saturday May 21st one thousand to twelve hundred
civilians per day have been evacuated from Djokjakarta. It was
hoped to step this up to three thousand per day by May 25th but
alleged attacks on the first two convoys by groups operating from
Kuomoentilan (Residency) have delayed this. Pending a clearing in
dangerous areas, the Dutch will give extensive military protection
to convoys which will necessarily restrict their size.

(3) The Dutch troops will be withdrawn from their positions on the
South Eastern section of the Residency (including Wonosari) on May
30th. In addition, the Dutch have agreed simultaneously to
evacuate three posts on the Djokjakarta-Klaten Road to give the
Republicans a corridor between their forces on the North Eastern
boundary of the Residency and their main concentrations on the
South.

(4) Apart from the vexed question of arms for the Republican
police, there is thus little to delay the restoration of the
Republican Government. However, it has so far been impossible to
fix a definite target date for the actual transfer of authority.

Ostensibly, this is due to the delay in the programme of
evacuations. The Dutch have hinted, however, that they will not
agree to the fixing of a definite date until more progress has
been made in sub-committee two. (I expect to be able to report
progress on the cease-fire by the weekend.)
(5) During the sub-committee's stay in Djokjakarta, Cutts heard of
further incidents which indicate a campaign (organised or
otherwise) by Dutch troops of intimidating the inhabitants into
evacuating.

(6) Dutch sources believe Setiadjit is in charge of Communist
operations in the Kuomoentilan area.