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(F 1250/727/10)

NO DISTRIBUTION

Decypher.

Sir A. Cadogan (Peking).

20th February 1935.

No. 175.

D.

(BY Wireless) 20th February 1935.

R.

3.40 p.m. 20th February 1935.

Following received from Commercial Secretary

Hongkong No. 5 February 18th begins:-

Addressed to Peking No.5 February 18th, repeated to

Mission, Canton, Commercial Counsellor, Governor of

Hongkong.

Canton telegram No. 17.

Gellion informs me that Japanese petition was not

brought up at last meeting of Macao town council and that

the Governor of Macao has replied to the Japanese Consul-

General, Hongkong, that waterworks negotiations are to

take place with another syndicate and Japanese proposition

cannot therefore be considered at present. Malcolm of

Malcolm and Company, Shanghai, is here and is interested

in Gellion's scheme. They are quite satisfied however

that there is no chance of financing except by bank who

would not move without Government guarantee. Malcolm

states about 1,000,000 Hongkong dollars would be for

British goods.

153

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