New Guinea is one of the few topics of the R.T.C. on which the
conflicting attitudes of the parties is clearly emerging. The
Dutch will insist that Northern New Guinea be excluded from
Indonesia while both Indonesian Delegations will demand its
inclusion. The Indonesians are agreed, however, that special
economic and administrative agreements might be made with the
Netherlands to facilitate New Guinea's development.

2. The Indonesian viewpoint was decided at a secret meeting of the
two Delegations. Hatta who as reported earlier is not seriously
concerned about New Guinea suggested that a condominium status for
Northern New Guinea might be accepted. He agreed, however, with
the Federalists when they insisted on the importance of the
inclusion of New Guinea in Indonesia and the other Republicans
supported them both in principle and for political reasons.

3. In informal discussions with carefully selected Dutch and
Indonesian Representatives I have suggested that the conflict on
New Guinea should not be allowed to prejudice an early successful
conclusion of the conference and that it might therefore be
desirable to postpone the issue for later negotiations. This view
has been sympathetically received but it is too early to judge
whether it will be taken seriously.

4. The Dutch Press has given considerable space to the suggestion
that Indonesia and the Netherlands might share a joint trusteeship
of Northern New Guinea and I should be glad to have your reactions
to this proposal.