CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 113

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ships were created at Macao it would not suffice to divert much

trade. In addition, Hong Kong had the advantage of railway

communication from Kowloon with Canton. The importance of the

question, however, from the strategical side was recognised, but

it was felt that our present information was rather inadequate.

The Cabinet agreed -

That the Secretary of State for Foreign Affairs should bring the matter to the attention of the Portuguese Ambassador, saying that we had no adequate information on the subject and enquiring whether the Portuguese Government had definite inform- ation as to any approach by Japanese in- terests and what action they had in mind. It was suggested that emphasis should be laid on the danger of the proposal to Portuguese interests in Macao rather than to ourselves.