In my last report [1] I mentioned some indications which showed
that a Japanese consulate was likely to be established in the near
future. On September 19th I saw a radiogram from Japan to Segawa,
the Japanese director of SAPT [2], in which it was stated that a
Japanese consul would be arriving in Dilli in mid October next.

Another message to Kawabuti, the senior Dai Nippon Airways'
employee, stated that another flight was to be made from Palau to
Dilli on 11th October, and that the aircraft would bring a total
of sixteen persons including the crew which is normally seven.

This information was transmitted to you by radio via Darwin a.m.

Saturday, September 20th. [3]

[matter omitted]

Last Saturday, September 20th, a message in clear arrived from the
Portuguese Foreign Office for the Governor [4] stating that the
Japanese consul would be Tokitaro Kuroki and asked whether there
was any objection to this appointment. Assuming that there was at
least some British objection to a Japanese consulate in Dilli, I
called upon the Governor this morning to ask for any information
which he felt disposed to give for transmission to you. A rumour
was already current that a Japanese consul was to be appointed,
and I therefore had an excuse to broach the subject without
disclosing the information which I had obtained from the radio
station.

The Governor was absent in Ban Cau when he first heard the rumour.

All rumours, whether well founded or not, travel with amazing
rapidity in this country, as gossip is the main recreation. In
view of the rumour the Governor returned to Dilli, two or three
days earlier than he had originally intended. At least he told me
this, and I have no reason to disbelieve him. There was a cypher
message from Lisbon awaiting him, and this gave the first
information that a Japanese consul was to be appointed. The
Japanese, of course, knew well ahead of the Governor.

The Governor, in reply to this communication, said that he did not
see any reason why a Japanese consul was necessary in such a small
place as Dilli. His next advice was that giving the name, and
asking for any objections, but as he said, I cannot raise any
objection to a name only. I informed him that the British
Government would not receive the appointment with any pleasure,
and that I was surprised at the Lisbon Government giving way to
the Japanese after resisting the appointment for quite a long
time. The Governor then expressed the opinion that Japanese
pressure on Macao had probably influenced the Lisbon authorities.

I have informed the British Consul General at Batavia [5] that a
Japanese consul is expected to arrive in Dilli in mid October
next. This letter went by hand four days ago.

It would appear that the Japanese have stolen a march on us and
that the only reasonable counter measure is to appoint a British
consular officer, senior in status to the Japanese. The Portuguese
are apt to judge nationalities by appearance, and the Japanese do
not begrudge expenditure in any of their interests here. The
Japanese consul will have a fine residence, modern motor car, and
will no doubt do a good deal of entertaining. All these things
make a great impression on the Portuguese, and if British
interests are to be maintained a senior consular officer with
staff will be required to maintain prestige. Preferably an officer
who can converse in Japanese and at least in French with the
Portuguese.

During the whole time I have been here I have been very diffident
about discussing political questions with the Governor, as I have
no status for so doing. In fact I have far overstepped my
functions so far as the Portuguese authorities are concerned, but
when a Japanese consul is in residence, I really feel that I will
be unable to deal with any so called diplomatic matters. In fact
the position in Portuguese Timor may be now bluntly summarised
into the following alternatives; either British interests are to
fade because of Japanese commercial and political status, or our
interests are to be maintained and increased by uneconomical
commercial purchases, and high political representation.

This evening I learnt that the Japanese have received authority to
purchase the house already mentioned. I also ascertained from
commercial radiograms that the Japanese wish to buy practically
anything which Timor can supply, even to such unimportant items as
salt, maize, sandalwood and very small parcels of rubber. These
purchases are no doubt being made in an endeavour to level an
adverse trade balance, but nevertheless they show that nothing is
too small for the Japanese to buy.

With the arrival of a Japanese consul, the extent of Japanese
influence here will comprise:-

Full diplomatic representation by a consul, living in probably the
best house in the country, and with unlimited funds for personal
expenses, entertainment, and the upholding of national prestige.

Complete control of external trade so far as odd products are
concerned. Such products being those which most other countries
would not buy; and a fair proportion of the main export of coffee
through the Japanese interest in SAPT.

A superfluous staff of experts, nominally employees of Dai Nippon
Airways. I say nominally, because there has been a request from
Japan to Kawabuti asking for recommendations for the promotion of
certain members of his staff, and such request savours more of
military procedure than commercial.

Against this influence, exerted through no less than twelve
permanent residents, the consul, and the bunch of officials
expected in the flying boat already mentioned, we have myself, a
technical aviation expert masquerading as a general Government
representative, and Whittaker, a naval intelligence officer,
masquerading as a civil aviation officer.

The position as now existing is impossible so far as opposition to
Japanese penetration is concerned, and the underhand system of
gleaning news and intelligence by unauthorised perusal of
radiograms leaves very much to be desired. We must accept the fact
that Japanese penetration in Timor cannot be satisfactorily
prevented with the means now available. I am thoroughly disgusted
with the existing situation; I receive no advice of any political
or trade developments concerning Portugal and her colonies, and
merely act here as a flying boat control officer, and an
unofficial and very minor representative of the Government of the
Commonwealth.

I am now convinced that there is nothing more which I can do to
minimise effectively the progress being made by the Japanese in
the extension of their southern penetration policy, and I ask that
I be relieved at the expiration of the term which I volunteered to
serve here. This period expires on 13th. October, i.e. six months,
and I would appreciate advice by signal of the date when a relief
may be expected.

D. ROSS