CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 123

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The Japanese Consul-General at Hong Kong is stated

to be acting as guarantor of the above offers.

4.

In the meantime a British Syndicate has been investigating the possibility of taking over the Macao

waterworks. They estimate that a sum of about $150,000

will be required to finance the project. On approaching

the Hong Kong and Shanghai Banking Corporation, they were

informed that such an advance could not be considered

without the guarantee of the Hong Kong Colonial Government.

The position on the 8th March was that the

5

Governor of Macao had reported to Lisbon tilat botii Japanese

and British interests were negotiating to take over the

waterworks. He had refrained from reporting details of

the latest Japanese offer, in the hope that an acceptable

British offer would meterialise.

He is, however, fully aware that the Japanese

scheme might lead to a considerable im rease in the

prosperity of his Colony and, should a British offer not

mature in the near future, he will be compelled to

overcome his fear of eventual Japanese control of Macao,

and recommend acceptance of the Japanese proposals.

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