COPY.
The Honourable
Enclosure No.3.
HONGKONG AND SHANGHAI BANKING CORPORATION
HONGKONG, 2nd August, 1935.
The Colonial Secretary,
Present.
54
Dear Sir,
With reference to your letter of 31st July regarding a guarantee from His Majesty's Government in the matter of the Macao Waterworks scheme, the matter was first broached to me by Commodore Elliott who called at my office with, I think Captain Waller R.N., and earnestly requested that something should be done before the pro- position was placed in the hands of Japanese. I replied that I quite saw the dangers he mentioned, but that if the Bank took a hand in it we would require a guarantee from the British Government holding us free from any political interference whatsoever so that in the event of Macao falling into other hands our advance would be refunded to us if our concession was cancelled by newcomers.
He informed me that representations had been wired home to the Admiralty by him, to the War Office by the G.0.C., and to the Head of the Air Force in London by that branch here. I also understood that the scheme had, shall I say, the blessing of the Hongkong
Government.
I was also given to understand in a private conversation with the G.O.C. that word had been received from London that the matter was being, or had been, favourably considered.
I am reasonably satisfied that as a commercial proposi- tion the scheme should be successful, and when properly installed and in working order a public company can be formed to take it over.