Your No. 88. [1] Portuguese Timor.

Recommendation for appointment of Commonwealth Official
Representative as described in my No. 201 [2] is at present before
Cabinet. [3] As Foreign Office were aware of proposal from my No.

197 [4] am surprised that they are now raising objections at this
stage after pressing for decision.

It is of course possible that the Portuguese Government will not
be agreeable to accepting official with proposed status but this
can only be ascertained when request is made assuming Cabinet
accepts recommendation. In our mind there seems little substance
in other points raised in your 88. On the contrary information has
just been received from Hudson Fysh [5] to effect that Governor at
Dilli [6] does not desire to see Japanese Consulate opened, and
says no need for Consul. If Australian Consulate were set up
Japanese pressure for this would be impossible to resist. The same
difficulty would not arise with appointment of official of elastic
status as proposed. All evidence suggests that Governor is pro-
British and we do not anticipate any reluctance to co-operate with
official representative.

Incidentally reports that large numbers of Japanese are at Timor,
that wireless station has been erected, regular air service has
been established and that consul will shortly be located there are
all false. There are only 13 Japanese there including women and
children. We are, however, fully alive to the desirability of
forestalling attempts at penetration and exploitation.

HODGSON