COPY.
No. 245.
Copy sent to Hongkong.
EMBASSY,
BRITI
TOKYO.
May 6th, 1926.
Nadun
Sir,
With reference to my despatch No. 151 of March 26th,
regarding the supposed connection with the drug traffic at
Hongkong of Mr. Shimizu, formerly Acting Japanese Consul-
General of Canton, and Mr. Saito. a member of the Japanese
Diet, I have the honour to transmit to you herewith a
translation of a memorandum which I have received from the
Japanese Ministry of Foreign Affairs informing me of the
result of their investigations into the conduct of these
two persons.
2.
The memorandum states that the business upon which lir.
Saito was engaged at the time of his visit to Hongkong in
March, 1925, was connected with a scheme for the acquisition
of mining rights in the Paracel Islands, and not with the
traffic in drugs. The last reference in the correspondence
which has passed between the Foreign Office and this Embassy
on the subject of Japanese activities in these islands is
Foreign Office despatch No. 31 of January 17th 1924, which enclosed a copy of report No. 16/5 of November 2nd 1923 by the
Naval Liaison intelligence Officer at Hongkong.
This report
729/24
Secret
quotes a letter written in January, 1922, by the Acting Consul
in Formosa to the Commercial Counsellor of the Embassy, in
which the name of a certain Hirata appears as having large
interests in the Paracela. The liirata in question is
doubtless identical with the one mentioned in paragraph 3 of
the/
The Right Honourable,
Sir Austen Chamberlain, K.G., M.P.,
etc.,
etc.,
etc.