CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 14

14

a promising speculation, it is probable

that the Hong Kong bank would have been

ready to help. Hong kong might suffer from

the development of a competitive port; but

even so it is not clear that matters

would be improved if the mort were devel-

oped by critish, rather than apanese,

capital; so that the last sentence of the

Governor's telegram in (17 is not under-

stood. It is po more probable that the

apanese have in mind the increase of

their political influence in South China.

This is a matter for Foreign Office ratier

than for us. Or they may have military

designs, though for this purose there would

seem to be little advantage in their

developing a base in lacao rather than on

the mainland of China. Col. Grimsdale

aprehended tlat an aeroplane base on

lacao would make the harbour of Hong Kong

untenable, though to capture the fortress

the enemy would want a base on the main-

land. The position is obscure.

13.3.35

23 Tel. to Gov. No:33.

17 and

14.3.35

24.

25

26

27

Gov. Tec. No. 65

To Fo

•

Wo

w/c.23 +24

15.3.35

28

Am

adny

15.3.35.

29

B.T

Coke. 17, 23, 424

30

DOT.

Luff

J