My telegram 11th April TIMOR. [1]

Telegrams 246 and 251 from Stirling [2] confirm our view that
Wittouck [3] seems a long way from acquiring any concession
covering western area and that the Portuguese Government has in
fact committed itself to promising a concession over this area to
the Japanese.

That being so, emphasis is added to the view contained in last
paragraph of telegram referred to.

We cannot but feel that mere oil concession will not exclude
Japanese obtaining other and overriding concessions.

They are in fact already well established in Timor, mainly through
activities of Sapt [4], and for these reasons we do not place the
same importance on obtaining oil concessions over whole Territory
as Foreign Office does.

That being so, we are inclined to view that if present discussions
on basis my telegram are meeting grave difficulties it would be
preferable for Oil Concessions to proceed with development of
their own concession as rapidly as possible. To this end they
might seek the assistance of Royal Dutch, assuming Anglo-Iranian
are still disinclined to act. In this respect you might be in
position to afford them valuable assistance by also enlisting co-
operation of Netherlands Minister. [5]

It appears to us that Oil Concessions will need strong financial
and technical backing preferably by a powerful Oil Company, as it
seems doubtful whether they will be able to exploit from their own
resources.

This view will be reinforced by fact that if proposal for Wittouck
purchase cannot be consummated, Governments will not be called on
for financial support, and Company will have to rely on outside
assistance.