CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 156

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(F 1140/1140/10)

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155

Decypher.

No.1.

R.

(Saving).

Sir A. Cadogan (Peking)

D. (By Post) 29th January, 1935.

5.00 p.m.

19th February, 1935.

29th January, 1935.

Reference Canton despatch to the Foreign Office

No.34 of 26th October.

Following from Canton begins:

Addressed to Peking No.8, 26th January, repeated

to Hongkong Mission, Commercial Counsellor, Trade Commissioner

and Hongkong.

Confidential.

Mayor of Canton yesterday informed Manager of

Asiatic Petroleum Company that an offer had been received from Mitsui Bussco Kaisha and South Manchurian Railway to

purchase the whole site of new inland port here.

2.

Civil authorities are anxious to refuse the offer but are nervous of what military might do if offered several

million dollars cash.

3.

Mayor suggests that in order to avert possible danger some British firm should advance 500,000 dollars and receive in return a red deed for an essential portion of property. At the same time an agreement would be signed providing for redemption by Municipality after six months failing which property could be sold or otherwise disposed of by purchase. This is in effect a legal mortgage.