SECRET
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3(4) OF THE PUBLIC RECORDS ACT 1968
ITEM FOR INCLUSION IN BRIEF NUMBER 4 FOR THE VISIT OF THE PORTUGUESE FOREIGN MINISTER 29/30 JUNE 1978
CHINA AND MACAO
1. How do the Portuguese see the prospects for establishing diplomatic relations with China?
2. How do they propose to handle the question of Macao in the negotiations with the Chinese? In our view, the Chinese are well satisfied with the present situation and it is best to leave well alone. We hope that the Portuguese will avoid any reference to Hong Kong if they do get involved in discussions with the Chinese about the status of Macao, and will in any case keep in close touch
with us.
3. [If necessary] Any proposal to hand Macao back to China would have serious implications for Hong Kong. We would therefore expect the Portuguese to consult us before putting forward such a proposal, which would be very unwelcome to the British Government.
Background
4.
The Political Director at the Portuguese Foreign Ministry has informed HMI Ambassador in Lisbon that the status of Macao is expected to be raised in the forthcoming negotiations on the estab- lishment of Diplomatic Relations with China, and has asked for background information on the legal status of Hong Kong.
the
prospect that the Portuguese might offer to hand Macao back to
China.
We
5. We have no reason to suppose that the Portuguese are in fact contemplating an offer to hand back Hacao to China. But any such offer would certainly have serious implications for Hong Kong. therefore need to discover Portuguese intentions, and to make it clear that it is in no-one's interests to disturb the status quo.
SECRET