Your telegram 22nd May. [1] Timor. My definite impression is that
Dodson and Oil Concessions are not in a position to carry out
their obligations under concession, that no assistance Governments
would be prepared to give would put them in a position to do so
and that if the matter remains in the hands of Oil Concessions
they will default on their obligations and concession will be
cancelled.

The Anglo-Iranian, with whom are now associated Shell and American
interests, consider the concession quite unsatisfactory and would
require its modification before they would take any action. The
alternatives are-
(1) that present concession should be allowed to be cancelled and
combined concession interests should send a representative to
Lisbon to endeavour to negotiate a new one.

This would however throw the field open to die Japanese to try and
obtain the concession in competition with the oil companies.

(2) that Oil Concessions should transfer the concession to the oil
companies on payment of their out of pocket expenses.

The oil companies would then send a representative to Lisbon to
try and obtain the modifications they require in concession and
the Portuguese Government might agree to these modifications in
view of the great value to Portuguese of major oil companies
interesting themselves in oil possibilities of Timor.

A meeting is being held as soon as practicable between
representatives of oil companies, Foreign Office, Mines Department
and myself to review the whole position.

BRUCE