Wongsonegoro reported agreement in Pasundan on (a) Dutch supply to
the TNI, (b) withdrawal of TNI administrative units and (c) the
establishment of a Republican Commissariat in Bandung to review in
conjunction with the Negara the position of the Republican
administration. Wongsonegoro required authority from Jogja in
respect of (c) but expected to secure agreement for the withdrawal
of some officials and the transfer of others to the Negara.

2. However, on Monday Van Diffelen, Lovink's representative in
Pasundan, refused to allow supply to the TNI to proceed. He
claimed that the Sultan had promised s'Jacob that the Republican
civil administration would be withdrawn and until this was
effected he would permit no other arrangements to go through. The
Dutch military began to arrest Republican officials in the
Cheribon area. It was agreed that Rubiono, Republican military
representative on the Local Joint Committee, should proceed to
Jogja for instructions and that in the meantime no further arrests
should be made. The Sultan firmly denied to Dow that he had even
discussed civil administration with s'Jacob and pointed out that
in any case such matters were for Cabinet decision.

3. In the meantime supplies, particularly rations, are urgently
needed by the TNI and Rubiono is concerned over the growing unrest
among his men. The Milob at Bandung will request the Dutch to
arrange at least some token deliveries at once, regardless of
political issues.

4. The Dutch have announced the abolition of the Province of East
Java preparatory to the transfer of powers to the Negara and their
policy of Republican withdrawals from the Negaras has now become
very firm. The Republicans are still confident that they could
reach an understanding with the Negaras and would have done so
already, had the Dutch not intervened. They fear that the Dutch
are engineering a crisis between the Republic and the Negaras in
Indonesia in order to split the Indonesians at The Hague.

Part II Secret
5. My No.7 (K.341 [1]). I have now seen the Dutch proposals and
the following is a corrected version. The proposals relate only to
Java and provide for-
(1) the establishment of 'areas of action' to be no larger than
residencies, in which the military commanders of both parties
shall be jointly responsible for law and order and shall in mutual
consultation act against 'unsocial elements';

(2) early military concentrations in the areas of action in places
agreed upon by the local Commanders;

(3) the transfer of the responsibility for law and order to the
civil administration as soon as orderly conditions have been
established by the military;

(4) the joint administration of the Semarang Recomba and the
Central Java Renville territories until the end of the RTC when
the Renville area shall be transferred to Republican
administration. Future arrangements for the Semarang Recomba will
depend upon RTC decisions and 'a further Inter-Indonesian
Conference';

(5) the exclusion of all Federal services from (4), these
remaining the care of the Federal Government;

(6) the withdrawal of the Republican administrations from the
Negaras or the transfer of Republican officials to the Negaras.

Special proposals will be later submitted for Bantam. Dutch troop
withdrawals are not mentioned, but Wongsonegoro stated that
s'Jacob made verbal proposals as reported in my No. 7 (K.341).

6. Republicans in Batavia are inclined to accept the Dutch
proposals as a basis but think that the Cabinet will probably
delay substantive discussions until satisfactory progress is
reported from The Hague. (For Critchley only). However, there are
indi-cations that the present situation has reached its peak and
that the inherent military and administrative instability might
lead to a breakdown of the Cease-Hostilities in some areas.

Rationing of the TNI, for example, has become particularly urgent
in Pasundan and East Java if uncontrolled troop movements are to
be avoided. I feel then, that discussions should start no later
than next week and any news which might help to ease the present
tension at Jogja will be welcome.

7. Please see Romanos's cable [2] to de Brito SCTHB 25 of
September 26. It is most important that this request be withdrawn
and that the principle that Milex reports are confidential and for
the UNCI only be emphatically re-affirmed.

8. Your deviezen has been granted.