Anglo-Portuguese relations
The British and Portuguese have a longstanding friendship and alliance, that has included mutual military assistance at various times, for several centuries. It would not be surprising that a resident of a Portuguese colony (most likely East Timor, Timor L'este) might choose to recognize a prominent British admiral.
I agree that the handwriting is similar to British writing in the 18th and 19th C. That seems consistent with the sword style, which may date to the first half of the 19th C as others have noted. However, the handwriting style is similar to some other European styles of that general era (such as French and Italian). There are differences in writing style between these countries, but the sample is really too small to say definitively where the writer may have been educated.
It is surprising, in some ways, that this piece surfaced in Brisbane, Australia. While Timor is quite close to the northern coast of Australia, notably the Northern Territory and Western Australia, it is some distance from Queensland. Perhaps it was a WWII find by an Australian soldier serving there.
I doubt that this item ever made it to Lord Nelson. As far as I recall, his distinctive service was in the Atlantic and Mediterranean. If the sword had been found in Great Britain, that would seem more persuasive. But turning up in Brisbane makes me think it never got out of the Lesser Sundas, where it ended up in the hands of an Australian who brought it back.
For various reasons it's an intriguing piece. Congratulations on finding such an enigmatic item for your research.
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