Portuguese Timor. Reference my telegram 767 [1] December 30th
last. You will no doubt be already aware of communications from
External Affairs Officer [2] to Foreign Office on question of
representation in Portuguese Timor arising out of Batavia telegram
188 of December 10th last addressed to Foreign Office. [3]

Commonwealth Government has now decided that if Portuguese
Government is agreeable the best means of meeting requirements
would be appointment of Official Representative of Commonwealth of
Australia at Dilli. We do not consider circumstances justify
establishment by the Commonwealth of regular Consulate at Dilli to
which would also attach serious objection that it would make it
impossible for Portuguese Government to continue to resist
pressure from Japan for opening of Japanese Consulate. On the
other hand we feel that a representative without official status
at all, as has been suggested, might be unable to maintain contact
with Portuguese authorities necessary for political functions as
distinct from technical functions connected with Darwin-Dilli air
service. In reaching this conclusion we have in mind, while
recognising that there is no exact analogy, the successful
arrangement arrived at in the case of New Caledonia by appointment
of an Official Australian Representative with similar elastic
status.

Would appreciate therefore if His Majesty's Ambassador at Lisbon
[4] could be instructed to communicate this proposal to Portuguese
Government with view to obtaining their assent as soon as
possible.

FADDEN