CDS Drace-Francis Esq Assistant Political Adviser *Government Secretariat

HONG KONG

CONFIDENTIAL

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20 June 1977

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21 JUN 1977

HKK 182/412/1

1. Our correspondence on this subject rests with Derek Milton's letter of 12 April to you. There has since been a minor development at this end.

2.

it.

The Portuguese Ambassador called on Reg Hibbert later in April - I enclose a copy of the record of conversation and expressed a number of misgivings about the project and HMG's attitude towards

John Stewart called on the Counsellor at the Portuguese Embassy, Señor Barata, on 15 June and explained that we looked to the Portuguese Government to establish Chinese views on the project. This was a point which our note of12 April to the Portuguese Embassy

I attach copies of a 'speaking note which John used and of his minute to Ian Winchester in SED recording the encounter.

coo:

Mr Fell SED

Mr Orr FED

Mr Boon MGD

Mr Lello DOT

Mr Gardner DOT

Mr Davies BTC, Hong Kong

CHANCERY, Lisbon CHANCERY, Peking

T J David

Hong Kong & General Department

CONFIDENTIAL

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