COPY

The Governor of Macau has informed the Portuguese

Government that, in his opinion, the contracts should

be signed with a British Group connected with the

Hong-Kong Shanghai Bank, and not with the Japanese

Group. The negotiations with the former have reached

an advanced stage. In these circumstances, and in view

of the fact that the delays for signature have nearly

expired, the Portuguese Government consider that they

should authorise the Governor to sign the contracts

when agreement has been reached. Before doing so,

however, they desire to acquaint His Majesty's Government

with these new aspects of the o886.

London, 23rd April, 1935.

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