Since the return of the Prime Minister and Minister for Overseas
Territories last Tuesday [1], the Press has been full of reports
and conjectures generally that important decisions would be taken
immediately. it seems that many who supported the agreement [2]
now doubt the sincerity of the Republic in carrying it out.

2. I saw the Minister for Foreign Affairs this afternoon who told
me that a note has been given the Republican Government, the text
of which will be published tonight. Shortly, it calls on the
Republic to implement the agreement in certain constitutional,
economic and diplomatic matters, suggests ways in which it can be
done and asks for a reply within a fortnight. [3]

3. Van Boetzelaer told me that both Ministers were pessimistic
about the situation in Java and feel that whilst some elements
(which he did not name) were obstructing the implementation of the
agreement, others, notably Sjahrir, wish to see it implemented,
but were not strong enough to break down the obstruction. Both
Ministers were optimistic at the situation in East Indonesia,
especially Borneo.

4. I gained the impression that the Government feels that the
situation cannot continue in the present state of impasse. The
Minister for Foreign Affairs himself seemed depressed. He appeared
to hope that the United Kingdom and U.S.A. might try to influence
the Republic to a more reasonable outlook.