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(paras 8 & 11) I do not think that the question
of smuggling arms would be appreciably affected, since the firm in question as I have already said own extensive Marine premises.
(paras 9 & 12) I presume that in the premises you assume, viz, hostilities with Japan, the area in question would if it presented the danger you anticipate be at once seized, and any suspicious Japanese would be expelled from the Colony. The
Ħ menace to the safety
of our dockyards, cables &c" is a matter for the Admiralty who have already been consulted and expressed their concurrence in the lease.
(Para 13) I venture to think that the size of the existing Japanese community and the entire freedom of ingress and egress are already sufficient for the purposes of acquisition of information by the Japanese War Department, and that the addition of a few hundred Japanese coal-coolies would make little difference.
even
(para 14) The lease has already been long delayed and the Kitsui Bussan Kaisha are now pressing for a definite reply. The sale is an important matter financially to the Colony. If after perusing this Minute Your Excellency still considers that the Army Council should be informed it will be necessary to communicate by telegraph only.
3.
I have read the enclosures to your letter with great interest, and I propose to send a copy of them under secret cover to the Secretary of State for the Colonies.
I have the honour to be,
Your Excellency's obedient Servant,
(sd) F.D.Lugard.
Governor.etc,.