Copy

39.

SECRET

For record in the Dept.

21.3.35.

134

MACAO.

Extract from Conclusions of Cabinet 16 (35)

held on Wednesday, 20th March, 1935

3. The Secretary of State for the Colonies

reported that the Japanese had made an offer to the Govern-

ment of the Portuguese Colony of Macao to buy a large con-

cession there including the development of a new port. The

matter appeared to have strategical implications.

The Prime Minister said he would instruct the

Chiefs of Staff sub-Committee to examine the strategical

aspects of this proposal in consultation with the Foreign

Office and Colonial Office as required.

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