With reference to your letter of the 26th November last [1]
forwarding two questionnaires relating to Portuguese Timor, and in
continuation of my letter of the 7th December [2], I have the
honour to eclose herewith the answers to the questionnaire 'Annex
A' [3] which have been prepared by Mr Lambert since his return.

2. In regard to 'Annex B' [4], dealing with the Staughton
concessions Mr Lambert has explained the situation fully in Part
II of the report on his tour. A copy of this report [5] is being
forwarded to you and will no doubt reach you shortly after this
letter. After reading Mr Lambert's repot I feel that it is only
possible to endorse the recommendation made by His Majesty's
Embassy at Lisbon to the Foreign Office on October 28th that the
best, course for Mr Pascoe to pursue would be to cut adrift
altogether from the Staughton concession and, to break, fresh
ground personally with the new Governor of Timor. As. this
communication from Lisbon stated, the Portuguese Minister of the
Colonies [6] now regards the Staughton concession as dead and not
capable of revival.

H. FITZMAURICE