The Netherlands Minister here  informs me that there is likelihood of Portuguese Government agreeing to the Japanese application for mining and agricultural concessions in Portuguese Timor. It is stated that the Japanese have offered to establish shipping line from Japan to Timor. He believes that confidential British representations at Lisbon the only thing that may stop the Japanese getting concessions. The Netherlands Government is alarmed at possibilities. I suggest that you represent matter to the British Government. Shall I speak to the State Department here seeking their confidential co-operation in Lisbon?