I can't say for sure that this is what screenwriter Eleanor Perry had in mind; but interpreting the interactions between Ned and Julie as if they were real-life events, I'd say that Julie was sending Ned reasonably clear signals that she wanted him to initiate sex with her right then and there, the two clearest signals being her reclining on the ground for a substantial amount of time, and her turning the conversation to sexual matters (the stories of the exhibitionist man in the apartment window and the stranger who kissed her in the elevator). When Ned didn't respond promptly and directly to those signals, she in turn--in the classic female behavior pattern--lost interest in having sex with him, and lost a substantial amount of respect for his masculinity. Ned made it even worse with his somewhat pathetic schoolboy-like proposal to accompany her at all times outside her home and her office (a proposal that also drew attention to his unemployed status), and with his slightly silly speech about "protecting" her in some unspecified way.
Part of this would've been, I think, a generational misconnect. Ned obviously had some experience in seducing women, but his ways of doing it were ways that mostly belonged to the thirties, forties, and fifties, which would've worked fine on women closer to his own age but which would've made a poor impression on a twenty-year-old in 1967 (which is the year when the film presumably takes place, judging by the January 1967 date on the magazine that the character Shirley is reading by her pool near the end of the film). Julie is very likely in tune with the sixties Sexual Revolution, a phenomenon that Ned seems to have not quite caught up with; and she may well be on the Pill, so that nothing much is standing in the way of her and Ned's immediate sexual congress even though they obviously have no condoms with them, nothing in fact but the swimsuits they're wearing.
I'm not saying that a sexual initiative by Ned would've had a 100% chance of success. And I'm certainly not suggesting that he should've forced himself on Julie in any way. All I'm saying is that he should've taken the initiative, and accepted whatever result ensued.
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