Did JRRT encourage new ME stories?

[Sauron the White]

So then, to honor the intentions of JRRT, I can take what he has created and use the medium of drama to add to it?

Is this a correct assumption based on the words of JRRT?

"But once upon a time (my crest has long since fallen) I had a mind to make a body of more or less connected legend, ranging from the large and cosmogonic, to the level of romantic fairy-story....I would draw some of the great tales in fullness, and leave many only placed in the scheme, and sketched. The cycles should be linked to a majestic whole, and yet leave scope for other minds and hands, wielding paint and music and drama. "