CO129-392 - Governor Sir May - 1912 [9-10] — Page 334

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320

I asked him what he proposed to do as regards Lappa. He did not deny that Lappa was frequented by pirates, but he said

it was difficult for him to put troops there because a former Governor of Macao had allowed the Chinese Customs to establish themselves on the Island. I gather that he did not think it possible to send troops there at present.

The Governor then went on to speak at great length about a new scheme of Harbour improvements by which a channel which could be used by ships drawing 16 feet of water would be dredged. He said that he was desirous of raising a loan of five million dol- -lars to carry out this work.

I asked him on whose estimate that sum had been arrived

at. He showed me a long draft report on the subject. The most recent calculation had been made by a Portuguese Engineer Officer. The Governor seemed to anticipate opposition to this scheme by the Hongkong Government. I said the Hongkong Government would not, if it could, oppose such a scheme. He then asked me whether I considered it would be Lore advantageous to borrow the money from the Hongkong Bank in Hongkong or to borrow in gold. I told him that the Hongkong Government had found it advantageous to borrow in gold as money could be borrowed at 34%.

The Governor then went on to speak about a railway project from Macao to Samshui. He seemed to think that the Hongkong Government would oppose the construction of such a Rail- -way. he spoke at great length of the value it would be to Macao. I told the Governor that the Hongkong Government had not opposed the proposal to build this line and that I did not know of any reason why it should adopt a different attitude if the project

were resuscitated.

Finally the Gove mor spoke at great length about Opium, with the object of persuading me that the requirements of incao were very much greater than the Hongkong estimate of 440 chests per annum. I pointed out to the Governor that the Chinese population of Hongkong was more than six times greater than the Chinese population of Lacao that the local consumption in Hong-

-kong