While we do not discount possibility of further police action against Republic, present indications are that Netherlands Government is unlikely to resort to force at least until outcome of present bilateral discussions between Netherlands and Republic Ministers is clear.
2. We understand that Stikker and Hatta reached some measure of agreement in principle during their recent talks and that purpose of current visit of Stikker and Sassen to Java is to endeavour to follow this up. We are at present disposed to give these talks a chance to succeed. If they break down and the Dutch again resort to force (a course which has been favoured in some quarters in Batavia), we shall immediately request strong action from Security Council. Meanwhile possibility is there and all possible pressure and warning by U.S.A. is desirable.