In any further communication on this subject, please quote

No. F 2345/G.

and address--

not to any person by name,

but to-

The Under-Secretary of State."

Foreign Office,

SECRET!

London, S.W.1.

100

54.

FOREIGN OFFICE.

15th April 1935.

(WA)

Sir,

With reference to your secret letter No.53560/35 of the 8th instant regarding reported Japanese activities in Macao,

I am directed by Mr Stanley Baldwin to state, for the informa-

tion of Secretary Sir P. Cunliffe Lister, that on the 10th instant a communication was made to the Portuguese Chargé

d'Affaires in the sense of the decision reached by the Cabine t

on the 27th ultimo (Cabinet Conclusions No.17(35)).

2. M. Fernandes was informed of the substance of the

reports which have been received and asked whether he had any knowledge of the proposed transactions. He replied that he

had none as regards Macao but that enquiries had been made by

Japanese private individuals of the Portuguese Legation at Tokyo

as to the possibility of acquiring land for settlement purposes

in Timor. Nothing more had, he said, come of this scheme as

it had been discouraged by the Portuguese Government. He

readily promised to telegraph to his Government to ascertain

what truth there was in the reports regarding Macao. At this

juncture, the hope was expressed that the project, if it proved

to be a serious one, would be nipped in the bud.

3. On the 12th instant, the Portuguese Chargé d'Affaires

stated that the Portuguese Government had "called to themselves"

the matter raised by His Majesty's Government, in order that

it might be duly studied at Lisbon. This decision, it was

explained, meant that the Portuguese Government had suspended

all further action pending an examination of the whole question;

they had not, it appeared, had previous knowledge of the case.

The Under-Secretary of State

for the Colonies.

on...

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