Suppose I am given a finite set of points $p_1,p_2,..p_n$ in the plane, and asked to draw a twice-differentiable curve $C(P)$ through the $p_i$'s, such that its perimeter is as small as possible. Assuming $p_i=(x_i,y_i)$ and $x_i<x_{i+1}$, I can formalize this problem as:
Problem 1 (edited in response to Suresh's comments) Determine $C^2$ functions $x(t),y(t)$ of a parameter $t$ such that the arclength $ L = \int_{[t \in 0,1]} \sqrt{x'^2+y'^2}dt$ is minimized, with $x(0) = x_1, x(1) = x_n$ and for all $t_i: x(t_i) = x_i$, we have $y(t_i)=y_i)$.
How do I prove (or perhaps refute) that Problem 1 is NP-hard?
Why I suspect NP-hardness Suppose the $C^2$ assumption is relaxed. Evidently, the function of minimal arclength is the Travelling Salesman tour of the $p_i$'s. Perhaps the $C^2$ constraint only makes the problem much harder?
Context A variant of this problem was posted on MSE. It didn't receive an answer both there and on MO. Given that it's nontrivial to solve the problem, I want to establish how hard it is.