IMMEDIATE

Following is conclusion of report telegraphed to Security Council
by Committee this morning.

Quote-
Committee will exert utmost efforts to carry out functions
conferred upon it in Security Council's resolution 24th December,
namely, to observe and to report on its observance by parties. But
if fighting is to give way to negotiations, Committee as a whole
recognizes that certain inevitable difficulties must be overcome.

Members of Committee differ only in relative weight they give
these difficulties set forth in the following:

(1) Negotiations presuppose two parties, each uncoerced by armed
force of other and each prepared to move toward reasonable
viewpoint of other.

(2) Politically, people of one party, without whose support any
agreement, even if achieved, may well be unenforceable, will be
reluctant to accept as bona fide any negotiations in which again
they start with an area under their control diminished as a result
of the resort to armed force by other.

(3) Practically, when demarcation line no longer exists, it
becomes virtually impossible to ascertain positions of Republican
forces, particularly in view of capture by Netherlands forces of
Republican High Command.

As result it becomes necessary to observe any events of military
nature throughout islands of Java, Sumatra and Madura. This would
be difficult enough in itself but Committee sees no possibility of
its observers being able to distinguish reliably between internal
security measures by Netherlands and hostilities between parties.

Unquote.