Following the failure of the Chinese resolution in the Security Council  the Dutch may be expected to press ahead with their unilateral policy (see para 2 of my K.143 ).
2. Through the Prime Minister of East Indonesia a conference will be called for Wednesday next of the leaders of all the Dutch- sponsored negarahs and daerahs of non-Republican territories. The Republic may be invited to send an observer. This conference may be expected to call for liberal powers for a reconstituted provisional government.
3. The Republic will be unlikely to accept the invitation to a conference with representatives of states whose existence they do not recognize. In any case they will be opposed to participation in a provisional government unless there are guarantees of all further stages to complete sovereignty.
4. The Republic's only course will be an appeal to the Security Council to stop the unliateral policy of the Dutch and to enforce real negotiations.
5. The main hope of a settlement may depend on fitting into our overall proposals provision for a very temporary pre-interim government for the whole of Indonesia which would carry out the tasks contemplated for our commissions.