NOTE.

A 143

22-

*

The Japanese have made an offer to the

Government of the Portuguese Colony of Macao 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)

(4)

to establish and operate a line of 2,000 ton

cargo steamers to run between Hong Kong

Canton Timor;

to pay off existing debts of established

industries.

In the opinion of the Macao Government all this

would mean 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. Deep water

facilities for shipping at Colowan Island, which is

a small island near Macao and included in that Portuguese

Colony.

For many years the Macao Electric 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 Governor of Macao to give the information about the

Japanese application. It is supposed that the Governor's

idea was "to give British interests an opportunity to

counter Japanese economic penetration in South China area".

Mr. Gallion

Some 40 miles from Hong Kong and 80 from Canton off the mouth of the Canton River.

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