RETURN TO DJOKJAKARTA
On 24th June, the Dutch troops commenced the evacuation of the Djokjakarta Residency, which will be completed in seven phases by 30th June. According to Military observers' reports and to the Netherlands Delegation, the first three phases have been satisfactorily completed. During the first phase the Republican troops did not arrive on time to take over Wonosari. This delay was probably due to communication difficulties, but local Dutch papers are making it the subject of a special press campaign as illustrating the reluctance of the T.N.I. to cooperate with the Republican Government.
2. The following are major points of difference between the parties in sub-committee one (return to Djokjakarta) which have to be settled before the report of this sub-committee can be formalised:
(a) Arms for the Police.
Though supplying uniforms and equipment for the proposed Republican police force of 2500, the only arms the Dutch will supply are 700 Enfields and 100 carbines. However, as a result of Republican insistence, Lovink has assured the Sultan of Djokjakarta that he will 'do his utmost' to supply further arms after the restoration, if developments are satisfactory. For reasons of morale, the Dutch do not wish their troops to take delivery of the 700 weapons and have the Vice President of the Commission's [aid]  in this connection. Van Lang[en], the Dutch Commander in Djokjakarta, has told Aneta that his troops are 'depressed' by the orders to evacuate.
(b) Radio Communications.
The Republicans urgently need a transmitter of two and a half to three kilowatts capacity to enable them to broadcast to foreign countries and to avoid difficulties of communication between the Republican areas which may endanger observance of the cease-fire orders. The Dutch will not supply this, as they claim that they have no suitable equipment available, but will give the Republicans a weaker transmitter not capable of satisfactory performance. According to the Republican Delegation, the Dutch will not object to the Republicans obtaining from other sources either a suitable transmitter or parts from which one could be constructed. I should be glad of your advice as to the possibility of this equipment being supplied from Australia.
(c) Air Communications.
The Dutch will only allow K.L.M. to operate on the basis of its Dutch Government 'concession'. The Republicans however refuse to be bound by the terms of K.L.M.'s agreement with the Dutch and wish to negotiate an adequate agreement with K.L.M. So far there is a complete deadlock here and the lack of a daily air service following Djokjakarta restoration adds to the Republicans' communications difficulties.