So far there has been little progress or indeed discussion of the
basic issues of the Conference. All delegations have been deluged
by informal contacts with people not directly concerned with the
conference and by official functions and excursions.

2. Notwithstanding the early advent of the Assembly [1], the
Republicans do not appear to be unduly worried by the delay in
getting down to practical talks. They have used the past weeks to
strengthen their bonds with the Federalists and there is immediate
prospect of much more intensive committee activity. As a first
stage, the leaders and deputies on the various committees are
holding informal talks to clear the way for more detailed
discussions and written statements next week.

3. The atmosphere is good. In part, this is due to the carefully
prepared reception and entertainment of the Indonesian
delegations. But more important, all the Dutch leaders with whom
the delegations come in contact, show a surprising readiness to
accept the inevitability of an early transfer of sovereignty.

4. On the other hand, the Republicans are seriously alarmed by
what they regard as a Netherlands press campaign to show the
Republic as unprepared to implement the cease-hostilities
agreement. Dutch reports from Java stress that in east and central
Java T.N.I. troops are infiltrating and encircling Netherlands
positions and that only the greatest forbearance and discipline on
the part of the Dutch troops are preventing incidents. Continuing
to describe the situation as 'explosive', these reports also
complain that the T.N.I. is failing to co-operate in the formation
of local joint committees. (So far only 5 are reported to have
been set up.) In reply, the Republicans claim that the Dutch
reports are greatly exaggerated and that T.N.I. troops are not
infiltrating but are coming out from under cover in areas they
have always occupied. They explain that the apparent lack of co-
operation is due entirely to communication difficulties.

5. In any case, it is unfortunate that the Dutch press is only
publicising the unfavourable effects of the Netherlands reports
from Indonesia. No effective publicity is being given to the facts
that as the Dutch admit casualties are down, shooting has been
reduced by 80% and reports from Sumatra and West Java emphasise
the active efforts of both parties to carry out their agreements.

6. In view of the danger that unfavourable reports from Indonesia
could be used by the diehards to wreck the conference, it is most
desirable that all joint committees and zones of patrol be
established without delay. Special efforts should also be made to
ensure that military observers gather first hand information as to
the situation in east and central Java. It may be desirable to
make a detailed report when the facts are available so that
special publicity can be given to the favourable aspects of the
cease-hostilities implementation.