1. in the light of telegrams , I have just completed reasonably satisfactory consultation with the Minister for Foreign Affairs as to Indonesia.  He is leaving for Washington to-night to discuss Cochran's proposals with State Department. While he does not by any means adhere to whole of Cochran's proposals he seems most anxious to make early settlement with Hatta. He regards this as essential in order to combat the serious menace of Communist extremist groups, especially in the light of violent speeches now being made.
2. Foreign Office view is now very much the same as ours. I strongly advise extreme reserve in hope that Washington progress may be made.