OlivWriter wrote:

And also, why is the underside of the lid fluffy, soft ? 

I imagine it's to protect the top of the machine when the lid is closed, and to provide some sound deadening when it's open and being used as a base. A design like this would not be very forgiving of those who did not keep their typewriters clean - as in using type-out liquids or erasers with the carriage being moved to the side.

Oliver,

If you rub you finger across it, does it come off as chunky dust particles ?  If so, the padding may originally have been open-cell foam that has aged and dried out.

Many of us scrap/brush off that old foam and re-apply new felt padding.

I like the peel & stick type I can pick up on eBay or local hobby stores...as I do not have to mess with glues when applying new felt.
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Open-cell foam looks something like this under a magnifying loupe.

Asbestos usually has linear strands of fibers.

When I remove the old open-cell foam, I use gloves and a particle mask and only do it on my driveway in front of our garage.
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Hello
After looking closely, it doesn't look like Pete E's image.
It's fibrous...
And in general, do you know if this type of material (asbestos) was used for typewriters ?