10
Yes, but the
long run, is considered to be China and not Japan.
While I think Mr. N.L. Smith is clearly aware that
the prosperity of the Colony depends upon Chinese
goodwill, he is also aware that the Colony is a
source of irritation to Chinese irredentism. This
has led to the somewhat cynical conclusion that
though it is clear that a strong central government
in China is to be welcomed by all, a China "not only
cupidity of armaments unified but fully armed" might not necessarily be
firms will always see
to it that China is armed beyond the limits aphr Ther expands & pay.
Seine
desirable.
Mr. Smith concludes that Macao has little
to fear at the moment, either from China or Japan, on
the grounds that (a) she is the least rich of the
various possible prizes; (b) that it is difficult to
believe that its shallow water and general strategic
disadvantages would be a likely objective.
I am not quite sure, however, that
"the integrity of China.......is a less dangerous
stake to hazard than the integrity of European
Colony".
It is suggested that the commercial
relations between Hong Kong and Macao deserves to
be more intimate than in the past. There is a
considerable legitimate trade, and a good road
between Macao and the Shek Ki district, while there
could be no question of Rivalry between Hong Kong
and a shallow harbour. The extent to which this
can be done is largely, I think, a local matter,
since it depends more upon minor details than upon
broad economic issues, but Economic Department should
see in case they desire to make any comments.
I suggest that the despatch should in due
course be acknowledged saying that the Secretary of
State
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