cleared with JED

2

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Type 1 +

From

Telephone No. Ext.

Department

In Confidence

VISIT BY THE PRIME MINISTER AND FOREIGN MINISTER OF PORTUGAL, 14/15 FEBRUARY 1977

LINE TO TAKE

PROPOSED AIRPORT AT MACAO (DEFENSIVE)

It is hoped to provide a substantive reply to the

Embassy's memorandum on this subject shortly.

Consultation

3

Separate copies

14. Durd

Hong Kong D

Mu. Boon

-MATD.

www.Dichison-

SEAD.

Svateful for

has been necessary between Government Departments and with

the Hong Kong Government before a reply could be given.

BACKGROUND

Since Portuguese Timor, whose status HMG regard as

unclear, was incorporated into Indonesia in 1976, Macao is

Portugal's sole remaining overseas territory. A Portuguese Embassy memorandum of 18 November 1976 to the FCO asked for

Relephone clearance HMG's views on a Portuguese proposal to build an international.

to the extract

from wiet on tinglo - Portuguese Relations for Portuguese P04's

visit

WEN, SED.

*5639.

airport at Macao. The memorandum specifically stated that the

project would benefit both Macao and Hong Kong and asked

for HMG's agreement to it being pursued directly between the

Macao and Hong Kong authorities. There are considerable

doubts in Whitehall about both the viability of the project,

and its benefit to Hong Kong. It has not been easy therefore

to agree on an appropriate reply to the Portuguese and one

is still being prepared in consultation with Hong Kong.

CONFIDENTIAL

D 107991 500,000 7/76 904 353

1

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