101

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On being reminded that the transaction in question was due

to be completed on the 15th instant, M. Fernandes remarked that

the Governor of Macao had no power to carry out such a transac-

tion without the approval of the Portuguese Government.

4. Sir P. Cunliffe Lister will doubtless wish to inform

the Governor of Hongkong of the representations made to the

Portuguese Government, and their reply, in the sense of the

foregoing paragraphs. As regards the question of a financial

guarantee to the Hongkong and Shanghai Banking Corporation,

there is nothing, so far as Mr Baldwin is aware, which could

be said to the Governor. The position, as he understands it,

is that any consideration of the question was to be deferred

pending the result of the enquiries to be made of the Portuguese

Government and the receipt of further information.

I am, Sir,

Your obedient Servant,

Cw. Orde

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