3
34
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increased its staff./
(111)
Considerable activity and movements of newspapermen
to and from Canton and Macau and occasionally French Indo-China
have been maintained throughout this quarter. In this connection,
cases have come to our notice recently of Military and Special
Service men masquerading as press representatives. On the other
hand, several Military and Naval officers have paid short visits
to Hong Kong quite openly.
3.
Further proof of the widespread ramifications of
Japanese espionage activities has come to light through the
discovery of an Intelligence Department in the local branch of
the Bank of Taiwan. It is known that they obtain data relating
to Chinese Military, trade, currency, etc., and latest reports
have dealt with the political situation in South China, Military
and defence expenses of Hong Kong and the trade done in wolfram ore
through Hong Kong to foreign countries. One member of their staff
attached to the Head Office in Taihoku, quite openly but
inadvertently stated that he was Chief of the Bank's Intelligence
Section.
4.
Press reports have it that an understanding has been
reached between the Portuguese and Japanese Authorities regarding
Macau, and in this connection, the following may be worthy of
note to show the increased Japanese interest in Macau which has
been noticeable of late.
(11) The Commandant of the Portuguese Gendarmerie in Macau
made a trip to Japan on 8.2.39, returning on 10.3.39, but it cannot
be confirmed through this office that WADA, the suspect pseudo
dentist in Macau, went with him.
(iii) On 24.3.39 an official attached to the Foreign Affairs
Department, Formosa, arrived in Hong Kong on his way to Macau and
made it quite clear that his destination was Macau only and not
merely for the purpose of eventually reaching Canton.