@5306/5306/10).

114

The Japanese Chargé d'Affaires, speaking quite

unofficially, repeated the following rumours to me to day:

An Admiral of the Chinese Navy has set up wireless

ste tions on Pretas Iland and on the Paracel Islands.

Meteorological reports are passing between the se islands

end Hongkong. The necessary funds have been supplied by

Sir Franois Aglen at the request of the British navel

authorities. One of these stations is of 3 kilowa ts,

and it is intended to instal machinery of higher power.

The British wavy intends to develop one of these islands

submarine base.

9 a

I asid that the grain of truth in these stories

might be that some hydrographical or survey vessel belonging

to the Chinese Customs had been exchanging messages with

Hongkong.

I would try to find out whether some thing of

this kind was at the bottom of these stories, to which

Mr. Yoshida attached no importance.

(Signed) 3. P. WATERLOW.

October 30th.

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