CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 115

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT.)

114

CRET.

C.C.S. 369.

COPY NO.2

COMMITTEE OF IMPERIAL DEFENCE.

CHIEFS OF STAFF SUB-COMMITTEE.

MACAO.

JAPANESE OFFER TO GOVERNMENT OF PORTUGUESE COLONY OF MACAO TO BUY LARGE CONCESSION THERE, INCLUDING THE DEVELOPMENT CF A NEW INLAND PORT.

REPOST

Introduction.

1. The Cabinet, at their meeting held on the 20th March,

1935 (Cabinet 16(35) Conclusion 3) instructed us to examine

the strategic aspects of the Japanese offer to the Govern-

ment of the Portuguese Colony of Macao to buy a large

concession there, including the development of the new inland

port.

2.

As instructed by the Cabinet, we consulted with the

Foreign Office and the Colonial Office and we had the advantage

of the presence of Sir John Maffey and Mr. Orde at our meeting

since it was apparent that the strategic, political and

economic implications of the Japanese offer were very closely

interlocked.

Japanese offer to the Government of the Portuguese Colony.

3. We were informed by the Colonial Office that the Japanese

offer was for a contract

(i) to build a waterworks at a cost of $1,500,000;

to purchase the whole site of a new inland port (for several million dollars cash);

(ii)

(iii)

to establish and operate a line of 2,000 ton cargo steamers to run between Hong Kong Timor;

Canton

+

(iv)

to pay off existing debts of established industries.

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