1. It is not clear at this stage what the Dutch counter proposals
[1] mean in terms of a just settlement or of Republican aims.

Clearly there has not been any immediate implementation of the
Security Council's decisions, but equally clearly the Dutch have
publicly gone out of their way to state that they are conforming
with the Security Council's decisions. From a tactical point of
view the important question is whether the Dutch attitude should
be described as defiance or whether the counter proposal should be
accepted under protest.

2. From the point of view of United Nations prestige and from any
practical point of view it is not possible to maintain that the
Dutch have defied the Security Council. Rather it should be argued
that action by the Security Council, has been effective to the
extent that the Dutch have declared willingness to negotiate a
settlement and to hand over sovereignty at an earlier date.

3. Our present view is that the Republicans might be encouraged to
enter into negotiations at The Hague provided that the Commission
is present, that is all its members and not merely a
representative, and provided also that the basis of discussion is,
firstly, the Security Council resolution [2] itself and, insofar
as this requires supplementing in detail, the Cochran plan [3]
insofar this plan is not inconsistent with the Security Council's
decision.

4. It will only be at this conference that a judgement can be made
as to whether a counter proposal is in implementation of the
Security Council resolution or is in defiance of it.

5. Our view would be therefore, that the Commission should report
that the Dutch have failed to carry out the Security Council's
decisions but have offered a conference. The Commission should
indicate its willingness for the conference to be held provided it
is held under the chairmanship or guidance of the Commission. The
Security Council should be asked to await a further report from
the Commissioner.

6. A resolution should be passed to this effect in New York but
couched in such terms as to make it quite clear that while the
Dutch have complied to some extent with the Security Council
resolutions they have done this only after an inexcusable delay
and in any case the compliance has not been complete. They should
therefore call upon all parties, if possible, under the
chairmanship of the Commission, to work out details of a
settlement on the basis of the previous resolution.

7. It is to be noted that the Republican Government has not yet
been re-constituted and before any Conference takes place clearly
that Government which is invited to the Conference must be re-
constituted and physically re-established in order that its
representative will obtain support for whatever agreement is
arrived at.

8. While organising a development along these lines at Batavia and
New York Australia should not take any initiative or give apparent
support but should keep to the policy of supporting the United
Nations and taking whatever action is considered by the Security
Council necessary in the present circumstances. A further
conference of the New Delhi group or consideration of sanctions
will, at this stage, in our view, achieve no useful purpose and
both should await the report of the Commission after The Hague
conference has taken place.