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while at the same time endeavouring to safeguard

British interests.

16.

It would appear to us, however, that it is just

as much in the interests of Portugal to prevent

the Japanese obtaining control of Macao as it

is to the advantage of His Majesty's Government.

Furthermore, we understand that the Portuguese Government do attach great importance to maintaining their concession. It will be recalled that in 1927 the Portuguese Government definitely requested that our forces at Hong Kong night

be made available, in certain circumstances, to assist the Governor of Macao to maintain the integrity of his territory in case of severe civil disturbance or riots which it was anticipated might be caused by Communist

activities.

17.

His Majesty's Government agreed that this assistance might be afforded on the strict understanding that the requirements of Hong Kong could be fully met.

18. It is further understood that the Portuguese

Government are financially in a favourable position and that they might, in consequence, quite well afford to take action themselves to assist the Governor of the

Colony.

19.

If however the Portuguese cannot be induced to do so it might pay us in the long run to help the Portuguese at Macao to keep out the Japanese, such expense being offset against the loss which would undoubtedly arise to the interests of Hong Kong if Japan became firmly established at the former place.

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