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concern will be disbanded or confine its operations to the

North. Two Portuguese residents of Macau are signalled as

Japanese agents, one of them being a friend of WADA, the

Japanese agent in Macau. Japanese fishing fleets have

resumed operations and a fleet recently left for the Gulf

of TONKING in charge of the manager of the local branch

of the NIPPON SUISAN MARINE PRODUCTS COMPANY, who is an

agentsuspected of collecting const information and other

non-fishing activities.

The TOKYO COMMERCIAL MUSEUM is operating again in Hong Kong;

its only other branch appears to be in New York. The

South Manchuria Railway espionage bureau is still functioning

in Hong Kong - this Hong Kong branch is not mentioned in

Japanese directories. Technical experts of the Japanese

Government Agriculture Ministry visited Hong Kong after

studying the question of rice control in Canton.

A secretary of the Japanese Treasury contacted the Hong Kong

branch of the Bank of Taiwan and went on to Canton by

trawler and is believed to have carried bullion thereto.

The cruiser, MYOKO visited the Colony for a few hours on

17.11.38 when the children of the Japanese Primary School

went on board to comfort the crew. The gunboat "SAGA"

arrived 10.12.38 ostensibly to land the new Consul-General,

but stayed two days and civilian sightseeing passengers

were seen on board. The Japanese Government Tourist

Bureau has set up office in Hong Kong and the man in charge

says his job is to re-attract tourist traffic to Japan.

A new bank called the China and Southern Bank with head

office in Formosa sent its representative to Hong Kong to

inspect conditions. The "Proprietor" of the Japanese

newspaper in Hong Kong The NIPPO" was fined in December

for breaches of the local laws in respect of pro Japanese

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propaganda

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