Copy
(F 1140/1140/10)
NO DISTRIBUTION.
155
Decypher.
No.1.
R.
(Saving).
Sir A. Cadogan (Peking)
D. (By Post) 29th January, 1935.
5.00 p.m.
19th February, 1935.
29th January, 1935.
Reference Canton despatch to the Foreign Office
No.34 of 26th October.
Following from Canton begins:
Addressed to Peking No.8, 26th January, repeated
to Hongkong Mission, Commercial Counsellor, Trade Commissioner
and Hongkong.
Confidential.
Mayor of Canton yesterday informed Manager of
Asiatic Petroleum Company that an offer had been received from Mitsui Bussco Kaisha and South Manchurian Railway to
purchase the whole site of new inland port here.
2.
Civil authorities are anxious to refuse the offer but are nervous of what military might do if offered several
million dollars cash.
3.
Mayor suggests that in order to avert possible danger some British firm should advance 500,000 dollars and receive in return a red deed for an essential portion of property. At the same time an agreement would be signed providing for redemption by Municipality after six months failing which property could be sold or otherwise disposed of by purchase. This is in effect a legal mortgage.