259 Mr R. G. Menzies, Prime Minister, to Mr S. M. Bruce, High Commissioner in London

Cablegram unnumbered 22 May 1940,

My cablegram 27th April, Oil Concessions Timor. [1] Would be glad learn immediately latest position on negotiations.

As I anticipated Oil Concessions are having difficulty in raising capital at present time especially in light of probable instability in area East Indies.

Company must find one thousand pounds this week to meet statutory obligations in Lisbon and keep concession alive. They can only raise five hundred and are appealing to Commonwealth Government for assistance and state Dodson had recommended they sell half their interest to any group for ten thousand. Their immediate concern, however, is raising of first thousand, which will give them breathing time.

Before consideration is given to appeal for assistance would like to know what Dodson [2] has done and prospects assistance by Anglo-Iranian or other group.

MENZIES

1 Document 181.

2 Representative of Oil Concessions Limited.

[AA: A981, TIMOR (PORTUGUESE) 22, v]