II.
Nate prepared in the Colenial Office.
The Japanese have made an offer to the Government
of the Portuguese Colony or Macac for a contract -
(1) to build a waterworks at a cost of $1,500,000;
(2) to purchase the whole site of a new inland
port for several million dollars cash);
(3) to establish and operate a line of 2,000 tun
cargo steamers to run between Hong Kong
Canton - Timor;
(4) to pay cff existing debts of established
industries.
In the opinion of the Macao Government all this
would mear. prosperity for that Colony, but they are
afraid that it would also mean virtual Japanese control
of the territory.
Macao, it is claimed, has excellent aerodrome
sites and a new harbour which could give a depth of
20 feet after short period of dredging. Leep water
facilities for shipping already exist at Colowan
Island, which is a small island near Macao and
included in that Tortuguese Colony.
For many years the Macao slectric Light Works has been controlled by a British Managing Director (Mr. Gallion) who has for years past been the chief British
resident in that Colony. In January he went to the
Consul General at Canton at the urgent request of the
* Some 40 miles from Hong Kong and 80 from Canton
off the mouth of the Canton River.
/25