Reference paragraph three of my telegram K.225.  Cochran has advised his Govern-ment that there is nothing that a Committee of Good Offices can do in the present circumstances in Indonesia. He has also expressed fear that if we stay on we may be associated with dishonourable settlement forced on the Republicans (see paragraph two and three of my telegram K233 ). I am inclined to agree with Cochran. On the other hand continuation of the Committee is probably of moral support to the Republic and serves to focus world attention on the problem. Dutch anxiety to be rid of us suggests that the Committee is of some value.
2. Cochran still refers to the possibility of financial pressure direct on Netherlands and is I believe supporting this course.
Possibility may be further developed through moves India is at present initiating.
3. On December 31st the Committee asked the Netherlands delegation to advise it by noon on January 1st whether the Government would now permit the Committee's military observers to return to former posts in the field with full use of transportation and other facilities as heretofore enjoyed. Acting Chairman  replied that Netherlands Government had again been asked for instructions which had not yet been received.