[This Document is the Property of His Britannic Majesty's Government.

AFFAIRS OF CHINA.

CONFIDENTIAL.

[15658]

No. 1.

481

[April 26,]

SECTION 2.

(No. 91.) Sir,

Sir C. MacDonald to Sir Edward Grey.-(Received April 26.)

Tokió, April 8, 1909. WITH reference to my telegram No. 16 of the 28th March last, I have the honour to forward, for your further information, some notes regarding Japanese industrial enter- prise on Pratas Island, which I have received from His Majesty's Acting Consul at Tansmi

It is interesting to note that regular sailings take place between Formosa and the island in question. It would seem that the enterprise commenced by Messrs. Neumann and Wilkinson which formed the subject of correspondence between the Colonial Office and the Foreign Office in April 1908, has not been successful for no further mention is made of it.

I have, &e. (Signed)

CLAUDE M. MACDONALD.

Inclosure in No. 1.

Notes by Acting Consul Firth respecting Japanese Industrial Enterprise on Pratas Island.

THIS island is reported to have an area of about 500 acres, measuring nearly 2 miles It has a coast-line of about from east to west and half a-mile from north to south.

5 miles; one quarter of the area is occupied by a lake.

The first Japanese to visit the island was the master of a sailing vessel belonging to Nishizawa and Co., of Keelung who, being blown out of his course, landed there in 1902 and took in ballast. This ballast was subsequently examined and found to contain a considerable amount of phosphorous. In August 1907, Mr. Kichigi Nishizawa, who appears to have made investigations in the meanwhile, sailed for the island with a party of labourers. His departure was announced in the local press both here and in Anping and it was reported at the time that he was taking stores and equipment for 200 men for 1 year. The incident was reported in the American press as the seizure by the Japanese Government of an island adjacent to and commanding the steam-ship route from Hong Kong to the Philippines, it being about the time of the war scare consequent upon the Anti-Japanese agitation in connection with the San Francisco schools.

Mr. K. Nishizawa was originally a "banto" in a Japanese firm at Keelung where he still resides. He is said to have very little capital but to have a good commercial reputation. His business was built up by shipping during the Russo-Japanese war and be now runs three small chartered tramp steamers between Formosa and Japan in competition with the larger lines. Sailings to Pratas Island are regularly published in the local press. He has upwards of 100 employees on Pratas Island and has erected houses, a hospital and pier there. The products of the island, phosphorous, phosphates and shells are shipped to Japan via Keelung. The operations are not very extensive Chinese fishermen are stated to and the capacity of the island is somewhat limited. visit the island but not to reside there.

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