TIMOR. Apart from any developments with regard to the western
area, Oil Concessions has been specifically obliged to carry on
prior to November next [1] under eastern concession. As failure to
carry out these obligations might force the Portuguese Government
under pressure from Japan to cancel the concession and would also
place the Commonwealth Government in embarrassing position vis a
vis the United Kingdom Government owing to the latter having
backed Oil Concessions diplomatically at the request of the
Commonwealth Government, I have questioned Dodson. He assures me
that Oil Concessions is in a position to carry out all obligations
under concessions but I cannot free my mind of the impression that
Oil Concessions in order to do so is relying on co-operation with
one of the big concession concerns or assistance through financial
house here, the obtaining of either of which in my view is
doubtful.

Please advise not later than Monday next whether Dodson's
assurance is justified.

BRUCE