CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 122

APPENDIX.

SUMMARY OF RECNT JAPANUST ACTIVITIES

AT MACAC.

1.

The present opportunity for commercial penetration,

of which the Japanese are seeking to avail themselves, arises from the bad financial condition of the Macao waterworks. For some years the operation of these works has been in the hands of the (Portuguese) Colonial Government, though the Waterworks Company has not actually been dissolved or

declared bankrupt.

One result of this has been the creation

of a debt of some £100,000, owed by the Waterworks Company to the Macao Colonial Government.

2.

In January 1935 the Governor of Macao took steps to inform the Hong Kong Colonial Government that he had been approached by Japanese interests with an offer to take over and improve the operation of the waterworks.

The Governor of Macao is stated to be anti-Japanese, and his reason for informing the Hong Kong Government was to give British interests an opportunity of countering the

Japanese move.

3.

On 22nd February the Japanese agent in charge of the negotiations presented a further petition to the Macao Government, detailing an offer to take over the waterworks on even more favourable terms than those previously quoted. The offer includes repayment of existing debts to the

Other inducements, Government and to shareholders.

unconnected with the waterworks, include the establishment

of new industries

-

e.g. an alcohol plant and sugar

refinery steamship service between Hong Kong, Canton, Timor and

Portuguese India.

in Macao, and the institution of a new Japanese

-8-

12/