Fact that Netherlands and Republican Governments have now reached agreement  on terms of a preliminary settlement for restoration of Republican Government in Djokjakarta will condition the manner in which Indonesian item is to be handled by the Assembly. Our attitude towards the agreement as set out in our 235 , is that it is satisfactory so far as it goes, but that we are 'keeping our fingers crossed'; this is merely a preliminary agreement, and there are obvious pitfalls and opportunities for delay, even before The Hague conference can meet.
2. We would suggest that the best course might be for the chairman of the ad hoc political committee to take the initiative in recommending without comment that the Indonesia item be held over until the next session. This would avoid unprofitable discussion and possible emergence of a resolution merely expressing satisfaction with present limited agreement, which in view of our reservations concerning the genuineness of the agreement we would prefer to avoid at this stage. Please keep in close touch with the Indian delegate.