CO129-553-5 Japanese activities in Macao and Canton 31-1-1935 - 22-11-1935 — Page 98

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reminded that the transaction in question was due to be completed on the 15th instant, M. Fernandes remarked that the Governor of Macao had no power to carry out such a transaction without the approval of the Portuguese Government.

4.

Sir P. Cunliffe-Lister will doubtless wish to inform

the Governor of Hong Kong of the representations made to the Portuguese Government, and their reply, in the sense of the foregoing paragraphs. As regards the question of a financial guarantee to the Hong Kong and Shanghai Banking Corporation, there is nothing, so far as Mr. Baldwin is aware, which could be said to the Governor. The position, as he understands it, is that any consideration of the question was to be deferred pending the result of the enquiries to be made of the Portuguese Government and the receipt of further information.

I am, etc.

(Sgd) C. W. Orde.