we think that we should not put this point to

the Portuguese.

Background

1098.

This situation arose out of rioting which

developed in Macao at the beginning of December

after the Portuguese authorities had forcibly

intervened to prevent unauthorised structural

changes being made to a building housing a

communist-owned school. The intervention of

the Security Forces resulted in casualites,xut

including some deaths.

Communist controlled organisations in

Macao, supported by the provincial authorities

in Kwantung Province and by the local and

national press, made a number of demands with the

usual Chinese threat that unless they were met

in full the Chinese authorities would not be

responsible for the conse uences. The

principal demands were for compensation, for the

punishment and/or dismissal of a number of

Macao officials; for the surrender of seven

K.M.T. agents etai ed by the authorities in

Macao and the suppression of all K.M.T.

antivities; and for a public declaration by

the Macao authorities apologising for their

"crimes" and accepting these terms.

10. By early January, negotiations between the

Governor of Macao and delegates of the Kwangtung

authorities on the form of the public

declaration had reached an advanced stage.

At

this point the Portuguese Government told the

Governor that the terms of the declaration were

unacceptable.

In particular they could not

accept the word "crimes" to describe the actions

of the Security Forces. The Governor

urging

/that

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