represented as "intervention" in the Macao dispute; we

are only responding to a Portuguese request on humanitarian grounds.

We shall therefore need to pay

particular attention to the following points:

(i)

Hong Kong must be careful to give no undertaking with regard to persons of Chinese origin other

The reasons are that than Portuguese nationals. Peking regards any Chinese as their nationals; would object to Hong Kong being used as an organised escape route; and would assume, probably correctly, that some of the persons were K.M.T. supporters or agents.

(ii) Hong Kong should agree to provide transit

facilities only. Most of the evacuees of. Chinese race are likely to want to stay in Hong Kong or go to Taiwan. To retain in Hong Kong a large proportion of these people would (apart from the domestic problem for Hong Kong that any additions to the population must involve) be a standing source of irritation to the Chinese authorities and a focal point for left-wing agitation in Hong Kong. A few exceptions could perhaps be made for those who have e.g. strong

This must family connections with Hong Kong.

For the rest, the

(iii)

be for Hong Kong to decide. Portuguese Government must arrange onward

transport.

The Portuguese must arrange the transport of

The Chinese claim that the evacuees from Macao, waters between Hong Kong and Macao are inland waters; they assert that foreign craft have no right of innocent passage and may not pass throu

No R.N. ships them without prior permission.

have visited Macao since 1958. The normal ferry services (largely Macao-controlled) pass unimpeded, but special arrangements to provide

The Hong Kong draft would be open to challenge.

authorities should only provide craft with the knowledge and agreement of the Chinese

authorities.

These points have been agreed with the Governor of Hong

Kong.

/8.

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