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Mr. Gallion and his associates (presumably
British) are said to have made an offer to take over the
waterworks, but cannot raise the necessary money 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.
Admiralty and Air Ministry have recorded their agreement
with this view.
Sukant
1213
The
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