My telegram of [6] [1]th July, D.984.

With the concurrence of the United States Government, His
Majesty's Ambassador at Lisbon [2] and his U.S. Colleague [3] have
now made joint approach to Dr. Salazar [4] on the lines proposed,
suggesting that military conversations should be held in Lisbon by
service experts under the direction of Dr. Salazar on the one
hand, and United Kingdom and United States Ambassadors on the
other, to discuss ways and means of Portuguese participation in
eventual operation against Timor.

Dr. Salazar replied that he was ready and indeed anxious to open
military conversations and agreed that those should take place in
Lisbon. He was, however, still trying and would continue to try to
get the Japanese out of Timor by agreement. He could not shut his
eyes to the fact that Macao was held in forfeit. The population of
this colony had now swollen to something approaching 400,000
people, the vast majority of whom were European including many
British and Americans.

The war was going none too well in China and these people might
soon be surrounded by Japanese as well as hostile Chinese. Their
fate might be too awful to contemplate and it was a responsibility
which could not be abandoned lightly.

Reports did not, however, encourage him to think that he would
succeed in attempt to reach agreement with the Japanese. In any
event preparation of plans and training of the Portuguese force
would take time and it would be desirable to prepare for every
contingency. He would therefore, at once, appoint a small
delegation to take part in conversations and would let us know
when this had been done.