The Dutch are concentrating on the formation of an Interim Federal
Government, but are still meeting difficulties. On 13th January
the Conference of Federalists unanimously agreed:

(a) to the formation of a National Federal Government;

(b) to the Dutch B.I.O.-draft decree [1] as a starting point;

(c) to the necessity for consultation with prominent persons from
territories not yet organised prior to the formation of the
National Federal Government.

2. I learnt confidentially that the more Nationalist-minded
amongst the Federalists, including the Prime Minister of East
Indonesia [2], intend to delay the formation of the National
Federal Government until after the Asian conference and the
Security Council have reached decisions on the Indonesian
question. They believe they will then be in a position to
strengthen their demands. They also claim that the last point in
their resolution provides a starting point for consultation with
Republican leaders. In this connection the Federal Conference is
reported to have agreed on ten people who should be consulted
including eight top Republicans.