CONFIDENTIAL

HER

RzEN.

2 i

INDEX

J T Masefield Esq

FED

FCO

лю

OFFICER

PA

773

BRITISH EMBASSY

LISBON

H

Actian ekon

17 October 1978

thompon

o.r.

9/10

Dear Thorold,

MACAU

1.

In his letter of 14 September Iain Orr asked us to look out a report which appeared in A Luta of 14 August about talks held in Paris between the Portuguese and Chinese Ambassadors. The report headlined "Government Crisis Compromises Relations with China" has not provoked any reaction in the press or in official circles.

2. In its report A Luta claimed that both the Portuguese political crisis (following the resignation of the Second Constitutional Government) and problems over Macau were slowing down the establishment of diplomatic relations between Portugal and China. Both sides, claimed the newspaper, were agreed that Macau was Chinese territory under Portuguese administration. The problem was how this reality should be expressed in a joint declaration which would announce the establishment of diplomatic relations.

3. According to A Luta the Portuguese Ambassador to France Coimbra Martins, and the Chinese Ambassador in Paris met in July to consider a declaration. The Portuguese side had proposed a three- point solution:-

(a) a very short declaration announcing the establishment

of diplomatic relations;

(b) a Chinese declaration underlining Chinese sovereignty

over Macau and emphasising the transitory nature of the Portuguese administration;

(c) a Portuguese declaration recognising the special nature with the statute of Macau and mentioning the historical rights of Portugal over the territory..

The talks, said A Luta, had since been suspended as after the fall of the Second Constitutional Government the Portuguese side had been unable to negotiate. . As yet no date had been fixed for the resumption of the talks.

Сс 1 C Orr Esq, HONG KONG

WE Quantrill Esq,

K&GD, FCO

KR Cargide Esą, PEKING

uns ever

You

Roger

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