According to a confidential report from Hatta, the Government campaign against the Communists is proceeding satisfactorily. It will take a few more days to get to Madiun, but the greatest danger is felt to be behind the Government lines. The Communists are avoiding frontal fighting and are spreading out and dispersing in the villages. They are then making things difficult by cutting the communications and spreading false rumours (e.g. that Sukarno and Hatta are co-operating with the Dutch.) 2. Republican forces and Security measures have been greatly handicapped by lack of transport. At least 200 trucks and 50 jeeps are required urgently. There is good reason to believe that they are available in Bangkok and it would greatly assist in stabilising the position of the Republican Government if the Dutch could agree to their shipment to the Republican port of Tuban.
3. Opportunities to purchase medical, textile (especially shoes for the Army) and paper supplies would also help the Government at this stage.
4. Palace sources have informed me that Van Mook will present new proposals on Friday when discussions with Federalists will have been completed at The Hague.  Cochran was unaware of this, although he admitted he did not expect The Hague's 'substantial contribution' to be an unconditional acceptance of his proposals.
The Americans here are awaiting developments and the results of pressure at The Hague.