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Governor of Macao to give the information about the
It is supposed that the Governor's
Japanese application.
idea was "to give British interests an opportunity to
counter Japanese economic penetration in south China
area".
Mr. Gallion and his associates (presumably British)
are said to have made an offer to take over the waterworks,
but cannot reise the necessary mone; on account of "the
depression and uncertainty". The Hong Kong and shanghai
Bank are unwilling to advance the money unless guaranteed
by the British Government or the Government of Hong Kong.
No recommendations for action have yet arrived here
either from the Governor at Hong Kong or His Majesty's
Minister at Peking, except that the former in his latest
telegram (No. 17) advises the Secretary of state that the
matter is most important and that His Majesty's Government
should take any possible step to assist Macao in the matter.
The Governor of Macao is understood to have reported
to Lisbon that Japanese and British interests are
negotiating: he has so far, it is said, refrained from
transmitting to his Home Government the details of the
Japanese offer, but he will have to do so in the very near
future and will have to recommend acceptance of it, unless
a British offer matures shortly.
The War Office have told the Foreign Office that they
view with some anxiety the establishment of Japanese
owned harbour works and possibly aerodromes in such close
proximity to Hong Kong, which would have a prejudicial
effect on the defence of that fortress. The Admiralty
and Air Ministry have recorded their agreement with this
view.
Colonial Office,
13th March, 1935.
(Signed) G.D.GENT.
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