CO129-579-10 Sino-Japanese War- quarterly reports of Japanese activities 25-1-1939 - 1-2-1940 — Page 33

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and Japan on/

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their way to and from Canton.

These included secretær ies,

clerks and other officials attached to the Foreign Affairs

Department of the Formosan and Japanese Governments, as well

as Finance Ministers and Bank Directors from Manchukuo. A

large number of the leading industrial firms in Japan and

Formosa engaged in sugar refining, mining, fishing, shipping,

etc., have been represented by their directors and managers

to inspect conditions and the prospects of furthering the

Japanese intentions of increased economic development in

South China. A large number of local Japanese businessmen

have been making frequent trips to Canton in an effort to open

up business there, but it is reported that the prospects are

still very poor.

This

(11) Information has been received that the South Manchuria

Railway, sponsored by the Japanese Government, intends to

commence the construction of a railway line from Bias Bay to

Canton. Although confirmation of this is still lacking, there

is no doubt that they have been showing more than their usual

interest in South China affairs of late. A considerable number

of their employees, including civil engineers, have been passing

through Hong Kong on their way to and from Canton, and in

addition, their local staff has also been increased.

organisation, which was originally represented in Hong Kong by

an employee who claimed to have come here to study English and

Cantonese, but has been known to be concerned in gathering

political and economical information with the aid of many agents

in Hong Kong and South China; has now come into the open by

establishing an office in the business section of the town on

the same premises as the Domei News Agency. This latter

concern has recently opened a new branch called the "South China

Photo Service", ostensibly for the receipt and despatch of

journalistic photographs.

The Domei News Agency, in common with

most of the other leading Japanese newspapers represented in

Hong Kong, has also increased its staff.