Your 272 and 270 from Stirling. [1]

You will have noted we have emphasised all along that too much
importance should not be placed on obtaining western oil
concession with view to excluding Japanese. We feel in light of
recent information about Portuguese promises to Japanese, that
proposal to buy out Wittouck [2] will not greatly further
objective in mind and should be discontinued in favour of strong
efforts by Oil Concessions to develop their own area as rapidly as
possible.

As set out in my cablegram 19th April [3] we are doubtful whether
Oil Concessions can develop from their own resources, and your own
impression is thus confirmed. Company has not yet taken any action
in Australia to raise capital, and are waiting on result of
Dodson's negotiations in London before embarking on active steps.

If Dodson cannot obtain London support, either from major oil
company or financial houses, it is problematical whether necessary
capital would be subscribed in Australia at present time. This
week, however, Company advised that Dodson had cabled that
prominent London brokers would subscribe large private capital if
Anglo-Iranian became interested parties. Company also stated that
certain Australian groups were anxious to participate, but no
concrete particulars of this were supplied. Minister External
Affairs [4] has interviewed directors and keeps in dose touch with
their activities. He is not satisfied that they have sufficient
business acumen or financial backing to make success of concession
without strong backing mentioned my cable 19th April. At moment
they seem to be relying almost entirely on Dodson's efforts. Hence
think it desirable action should be taken to enlist financial
support from London end, and you may be in position to assist in
this respect.

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