le
17.
147
De-recypher
OVPHR TELEGRA from the Governor of Hong Kong to the
Secretary of State for the Colonies.
Dated 9th March, 1935.
Received 8.53 a.m., 9th March.
A.
Addressed to the Secretary of State for the Colonies
110.60 of the 9th of March. Repeated to Peking Mission
No.29 Canton No.30. Begins.
Following from Staff Officer Intelligence to Commande.
in Chief. Second petition received by Governor of Macao f'on
ada 22nd February in which he gives the Japanese Consul
General Hong Kong as guarantor of scheme. Petitioner give⠀
attractive offer for water worke in detail which the
Government can repurchase after 15 years. Offer includes
payment of existing debts of established industries and new
line of steaners Hong Kong Canton Timor Portuguese India.
Staff Officer there has visited Macao and had unofficial lit
fronk discussion with Chai man of Tunicipal Council and ot er
parties interested. Chairman stated that "acao Government
believe Japanese offer would result in prosperity for Maca
hut fear eventually Japan's measures of taking over control
of Colony. Governor of Macao is understood to have reported
to Lisbon that Japanese and British Interests are negotiating
but no details of latest Japanese offer and is holding up
Japanese negotiations hoping for British offer, but unles:
this matures shortly Governor is reporting to Lisbon recon end-
ing immediate acceptance which it is thought will be approved.
Macao has excellent aerodrome sites on reclaimed ground and
new harbour with a depth of twenty feet low is available :fter
short period of dredging. Deep water facilities for ship: ing
Inds.
exist at Colovan Island.
I consider natter most important and that II.1. Govern ent
should take any possible step to assist acao in the matter.