My No. 8 (K. 342 [1]). The Republicans delivered their reply to
the Dutch on October 8. They accepted the Dutch proposals [2] as a
basis for discussion, but made preliminary counter proposals for
(a) troop 'dislocations' rather than concentrations, (b) the
inclusion of the federal services in the administrative
arrangements, and (c) direct discussions between the Negaras and
the Republic on the position of Republican organizations in the
Negaras.

2. The Dutch did not comment on this reply but submitted further
proposals dealing with the Renville territory of Central Java
only. Discussions between the two Delegations on October 10
resulted in the following provisional agreement:-

The regencies Ponorogo, Patjitan and Wonogiri, the districts
Moentilan and Salam and the regencies Poerworedjo and Wonosobo
will be TNI zones of patrolling. The regency of Temanggoeng and
the regency of Magelang minus the districts Moentilan and Salam
will be Netherlands zones of patrolling. The parties will
coordinate patrolling in the rest of the residencies Madioen and
Sourakarta, the regency of Keboemen and the whole area of the
local Joint Committee at Poerwokerto. The Dutch and the Republic
will jointly administer the residency of Banjumas and the Central
Java Renville area, excluding Tjepara-Rembang and the eastern
areas previously included in the Province of East Java. In
practice this will mean that they share the offices of Governor
and Resident and jointly select the junior officials.

3. The Dutch indicated vaguely that the present proposals do not
cancel the 's'Jacob plan' but are merely necessary provisional
measures pending further arrangement. If this is so, it is
difficult to follow why they are so limited, since the need for
early arrangements is just as urgent in East Java and the Semarang
area, both of which the Dutch were not prepared to discuss.

4. St[ew]art, the British Consul-General, informed Eaton that
Lovink had described the general situation to him as 'serious' .

Lovink explained that the early progress at The Hague had eased
Dutch concern over Republican infiltrations but that the recent
developments obliged the Dutch authorities here to take steps to
protect their position. Eaton gathered that Lovink had recently
received definite instructions from The Hague to this end. It
would appear then, that the 's'Jacob plan' was not in line with
this policy and the Dutch will now seek to drive a harder bargain.

5. The Republicans were divided in their reaction to the
agreement. Budiardjo saw it as a 'fencing off' to be followed by
Dutch pressure to weaken the Republic in the Recomba and Negara
areas. Wongsonegoro was more sanguine and regarded the agreement
as a 'first step' towards a general settlement. The Delegation
left for Djocja on Tuesday to report to the Cabinet. The Central
Joint Board will meet on Friday afternoon to formalise the
agreement or to make other arrangements. UNCI will propose that a
military sub-committee of the Board immediately draw up overall
arrangements for all Java for the allocation of patrolling
responsibilities through either delineations or co-ordinated
patrolling.

6. The Dutch have already begun to 'protect their position' and
are making large scale arrests of TNI and Republican civil
officers in East Java and the Semarang-Pekalongan area. They claim
that they are arresting infiltrants, communists and disorderly
elements, but the effect on the TNI is most unsettling and
Republicans report that their local commanders will not be able to
keep their troops quiet very much longer. There is a serious
danger that fighting will break out in East Java.