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Mr Cortazzi'

PS

SECRET

INDEK

الميه

7 JUL 1978

OFFICER

A

hm

san

30/6

по

State

(43

HONG KONG AND MACAO

1. In my submission of 28 June I recommended that the Secretary of State should take the opportunity of Dr Sa Machado's visit to

raise the subject of Macao.

2. We have now received replies to FCO telegram no. 115 to

Lisbon which sought comments from the posts concerned. The Governor of Hong Kong is fairly relaxed (Hong Kong telegram no. 808). He

reports that there are no local indications that the Portuguese are thinking of handing back Macao rather the contrary; and he believes that the Chinese would "brush aside" an offer to do so if

it were made. The Embassy in Lisbon have telephoned to say that they have no information on Portuguese intentions with regard to

Macao.

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3. The Governor's assessment is reassuring. But I still think it important that the Secretary of State should speak to

Dr Sa Machado on the lines proposed. I submit a revised version of the brief which takes into account the Governor's comments and those

in Peking telegram no. 382.

Ruangan

29 June 1978

Cc:

PS/Lord Goronwy-Roberts

PS/PUS

Mr Hibbert

RJT McLaren

Hong Kong & General Dept

Mr Murray

Mr Fergusson

FED

SED

Legal Advisers

SECRET

/I think

Page 165Page 166

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