COPY.
1/1715/35.
E/T:CA.
CONFIDENTIAL.
Sir,
Enclosure No.2.
31st July, 1935.
53
With reference to your letter of 25th July, 1935,
on the subject of the Macao Waterworks, I am directed to state that this Government was informed from London on 17th April, 1935 that the Portuguese Government was studying the matter in Lisbon and on 4th May, 1935, that the Portuguese Government was authorising the Government of Macao to sign contracts with a British Group connected with Hong Kong & Shanghai Bank. Nothing more was heard of the matter until 20th July, 1935, when this Government was informed by His Majesty's Trade Commissioner that
a contract had been signed.
There are references in earlier correspondence to a request by the Hong Kong & Shanghai Banking Corporation for a guarantee by His Majesty's Government or the Hong Kong Govern- ment, but there is nothing to show that this Government ever entertained the idea of giving any such guarantee. On the contrary, the correspondence between this Government and the Secretary of State for the Colonies was directed to urging His Majesty's Government in London to take every possible step to assist the Macao Government to entrust the Waterworks contract
to British interests.
Before forwarding your request for a guarantee to the Secretary of State for the Colonies I should be glad to know whether there are grounds at present unknown to me for supposing that His Majesty's Government has indicated its willingness to
give the desired guarantee.
I am,
Sir,
Your obedient servant,
sd. D.W. TRATMAN.
Colonial Secretary.
V.M. Grayburn, Esq.,
Chief Manager,
Hong Kong & Shanghai Banking Corpn.
HONG KONG.