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[Telchar]

But Olórin declared that he was too weak for such a task, and that he feared Sauron. Then Manwë said that that was all the more reason why he should go, and that he commanded Olórin (illegible words follow that seems to contain word "third"). But at that Varda looked up and said: "Not as the third;" and Curumo remembered it.

The Dragon Sauron might use with terrible effect. How then could the end of Smaug be achieved?

Im not sure what you're looking for Gil-galad, but I think these are the lines concerning Gandalfs fear, that the others are refereing to.


I think its safe to say that Gandalfs greatest fear was Sauron - in regard to Smaug, his fear was what Sauron could use the dragon for.