CONFIDENTIAL

of these at "unfrozen" rates which has been the main difficulty for

the UK in agreeing to open negotiations on a comprehensive agreement.

Talks,

without commitment on an agreement, were held between the

10 May. DHSS officials

DHSS and Portuguese officials in London on 9

ވނ

new intend to seek their Ministers' approval to negotiations with

Portugal with th aim of concludă an agreement within 12 months

(there would be phased "unfreezing" of pensions). But it would be

premature to inform the Portuguese Government or the British community

in Portugal of this during Mr Judd's visit.

Macao Airport

9. In November 1976, the Portuguese requested the British Government's

agreement to discussions between the Hong Kong and Macao authorities about

the proposal to build an international airport at Macao. Col Leandro,

Governor of Macao, seems to be the main driving force behind the

proposal. The FCO replied that while construction of an airport was

primarily a domestic matter for Macao, it had obvious and significant

implications for the Hong Kong Government's current and future

provision off air services, not least in the co-ordination of air traffic

control. The FCO would be happy for the Hong Kong and Macao authorities

to discuss those implications but considered it would be premature o

deo until the attitude of the People's Republic of China towards thre

proposal had been formally ascertained.

10.

tor

subsequently

The Portuguese Ambassador in London specifieally expressed his own

we Sand reservations about the viability of the Macao proposal and indicated

that the lack of diplomatic relations between Portugal and the PRC

to Sotari

br PRC views to be obtained.

might make it difficult

for

Shirere Chap

for

reasons of Anglo-Portuguese relations and Hong Kong/Macao relations, the

FCO would prefer that the proposal founder on PRC rather than British

plear

or Hong Kong objections, and consider the Portuguese could obtain

PRC Chinese views if they wanted,

their authorities that we look to them to establish WEEK/the Chinese

Ehas been porterited to the Portuguese Fabory

wirere

w

J

regard

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