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The Japanese Chargé d'Affaires, speaking quite
unofficially, repeated the following rumours to me to day:
An Admiral of the Chinese Navy has set up wireless
ste tions on Pretas Iland and on the Paracel Islands.
Meteorological reports are passing between the se islands
end Hongkong. The necessary funds have been supplied by
Sir Franois Aglen at the request of the British navel
authorities. One of these stations is of 3 kilowa ts,
and it is intended to instal machinery of higher power.
The British wavy intends to develop one of these islands
submarine base.
9 a
I asid that the grain of truth in these stories
might be that some hydrographical or survey vessel belonging
to the Chinese Customs had been exchanging messages with
Hongkong.
I would try to find out whether some thing of
this kind was at the bottom of these stories, to which
Mr. Yoshida attached no importance.
(Signed) 3. P. WATERLOW.
October 30th.
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