Halliday & Matthiessen (1999: 114):
Grammatically the distinction between propositions and proposals is constructed as follows.
When the projection is reported, propositions are realised by finite bound clauses, i.e. clauses that select for primary tense or modality; and proposals are realised by irrealis (infinitival) non-finite bound clauses — taking the contrasting examples from above:
(he said) that he had done the laundry : (she told him) to do the laundry.
When the projection is quoted, propositions are realised by indicative clauses, i.e. clauses that select for primary tense or modality; and proposals are realised by imperative clauses — taking the contrasting examples from above:
(he said) "I have done the laundry" : (she said to him) "do the laundry".
These realisational patterns are summarised below: