Committee telegraphed further report to Security Council this
morning, 26th December. [1] Conclusion which is set out in my
immediately following en clair telegram is not as direct as I
should have liked, but it was maximum that could be achieved with
support of other members and indicates that the present task of
Committee is well nigh hopeless.

2. Council's last resolution [2] provides an opportunity for the
Netherlands to accept decisions of the Security Council but in
fact to maintain their unilateral policy. It will also put the
Republican leaders in an extremely difficult position. Withdrawal
of the Netherlands forces and return to old conditions of economic
blockade would, following scorched earth policy, probably leave
the Republic with economic problems beyond its capacity. On the
other hand, the Dutch would refuse to accept withdrawal order and
this would provide opportunity for stronger and more direct action
by the Council in endeavour to settle the dispute.