TIMOR. Reference your telegram of 18th March.  At preliminary meeting with Butler  and Foreign Office officials on 20th March I gave your views and discussed the points raised in your telegram. Although Wittouck  has not obtained any concession yet, Foreign Office definite that the Portuguese Government must of necessity use Wittouck as a buffer against Japanese pressure irrespective of the strength of his claim moral or otherwise.
As a result of discussion, arranged that I should see the Portuguese Ambassador  and stress the Commonwealth Government's interest in concession. This I have done, and the Ambassador has undertaken to convey my representations to Lisbon both regarding oil concessions and the establishment of Darwin-Dilli Air Service.
Also arranged that I should see Cadman  which I did on 21st March. He promised me his views promptly but I have not yet been able to extract them from him. As soon as I obtain them we are having another meeting at the Foreign Office at which the question of desirability or otherwise of Dutch participation will also be considered. This question was left over to enable Butler who although personally inclined to share your views desired further to examine the political aspects.