The Americans today presented simultaneously to both parties and to other members of the Committee in the form of informal and confidential oral note a draft agreement for an overall settlement.  Covering letter states that if both parties after consideration are prepared to accept draft as a suitable basis for negotiations the United States delegation will introduce draft into Committee as a working paper. The letter also stresses desirability at present of secrecy as to existence and contents of draft.
2. In substance the draft closely follows previous Australian - United States proposals.  It provides establishment of a provisional Federal Government following elections to a Federal representative assembly to take place [during]  January, 1949 3. My immediately following telegram will give a more detailed analysis of the proposals.