Indonesian reaction to revised draft , which suggests partial Dutch compliance with past orders of the Council and the association of puppet States in negotiations, is understandably lukewarm. They are particularly concerned at the position they may be put in, especially in relation to the United States, if the Dutch should agree to the revised draft and they should disagree.
Palar is further concerned at the possible  might make of any outspoken criticism on his part. Acceptance by the Dutch would certainly create an entirely new situation, but it is our view most unlikely, and would, in any event, be regarded with some suspicion by the Council.
2. Meeting of the Council was further postponed by McNaughton this morning until tomorrow afternoon at the request of the United States. It is suggested here that this action was taken because of the United Kingdom  on support for joint draft. Our impression here would be that the United Kingdom would desire further modifications to suit the Dutch, but this does not appear to square  with number 249  from London, repeated to us as number 4. In any event United Kingdom have not received instruction enabling them to support the resolution without further modification, as result of a meeting in London this morning.
3. Palar, who is inclined to favour the line suggested in your number 26 , is pleased with any delay at the moment for two reasons:-
(i) he is, of course, anxious that someone should come from Indonesia, and (ii) he feels the decision of the Asian Conference will make amendments of the draft resolution easier because of the effect of having the decisions of the Conference, Egypt and, particularly the United Kingdom which holds the key to an ineffective  majority for a draft resolution.
One problem in relation to the amendments is going to be sponsorship , as Egypt has apparently committed itself in support of the draft, leaving only the Soviet countries.
4. Palar made an indirect appeal for further pressure to be put on the United Kingdom this morning.
5. There is as yet no reaction to our suggestions from the State Department. United States delegation have had no contact with Washington today because of the inauguration.  Ends.