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While on holiday in Dubrovnik in August 1932, Staubig found in an antiquarian bookstore an apparently genuine manuscript of The Book of the Spells of Merlin and found a description of a Chalice that could be the Holy Grail. He was asked by Professor O'Lochlainn to restore the runes that would conjure the vision of the Chalice. Staubig was also approached by René Emile Belloq and was impressed by the Frenchman's erudition but perturbed by his association with certain political elements in Germany.
The following month, he wrote to his friend, Professor Jones, to give him key information and further access to the manuscript as he believed it would be of particular interest to the professor.