CONFIDENTIAL

The Chinese had been resisting the establishment of diplomatic

relations until it was clear that there was no Soviet influence

over the Portuguese Government; conditions for a resumption were now established.

Macao was held by Portugal under en unwritten

convention. There was no treaty. The 1933 (Salazar) Constitution

had defined Macao as an integral part of Portuguese territory but the 1976 Constitution stated that "the territory of Macao, under

Portuguese Administration, shall be governed by a Statute in

keeping with its special situation". The Chinese wished the

Portuguese Covernment to give a clear statement recognising that

Macao belonged to China. Dr Se Machado could confirm that the

Chinese Ambassador in Paris had said this in terms during

negotiations.

8.

Dr Owen

Chinese.

advised that the issue should not be raised with the

The Chinese would prefer it left alone and it would

probably be possible to go through the whole negotiations without

the issue being mentioned.

would not broach the matter, but the Chinese were raising it, even

if only informally. Dr Owen did not think the Chinese would

want Macao back, nor the offer of it. They thought Hong Kong and

Macao were parts of China; we thought not; but no-one talked

about it. The Chinese might assert that Macao was part of China;

Portugal could reply that it was under Portuguese Administration but leave out saying that it was Portuguese territory.

Dr Sa Machado said the Portuguese

CONFIDENTIAL

/Dr Sa Machado

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