With reference to your letter of the 26th November last  forwarding two questionnaires relating to Portuguese Timor, and in continuation of my letter of the 7th December , I have the honour to eclose herewith the answers to the questionnaire 'Annex A'  which have been prepared by Mr Lambert since his return.
2. In regard to 'Annex B' , dealing with the Staughton concessions Mr Lambert has explained the situation fully in Part II of the report on his tour. A copy of this report  is being forwarded to you and will no doubt reach you shortly after this letter. After reading Mr Lambert's repot I feel that it is only possible to endorse the recommendation made by His Majesty's Embassy at Lisbon to the Foreign Office on October 28th that the best, course for Mr Pascoe to pursue would be to cut adrift altogether from the Staughton concession and, to break, fresh ground personally with the new Governor of Timor. As. this communication from Lisbon stated, the Portuguese Minister of the Colonies  now regards the Staughton concession as dead and not capable of revival.