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EXPECT THERE TO BE ANY ADVERSE EFFECT IF IT BECAME KNOWN PORTUGAL HAD MADE THE OFFER AND IT HAD BEEN TURNED DOWN. A SCENARIO WOULD SERVE ONLY TO CONFIRM PEOPLE'S VIEW THAT THE CHINESE ARE CONTENT WITH THE STATUS QUO.
3. MY ONLY CONCERN IS THAT THE PORTUGUESE MIGHT PUT FORWARD SOME FORM OF WORDS ABOUT THE STATUS OF MACAU (E.G THAT IT IS CHINESE
TERRITORY TEMPORARILY ADMINISTERED BY, PORTUGAL) THAT COULD LATER BE USED AS A LEVER AGAINST HONG KONG. I DO NOT THINK THE LIKELI-
HOOD OR THE RISK IS GREAT. HOWEVER, IF THE SECRETARY OF STATE IS SPEAKING TO DR MACHADO, PERHAPS HE COULD SAY THAT, IN OUR VIEW, THE CHINESE ARE WELL SATISFIED WITH THE EXISTING SITUATION AND
HONG THAT, FOR ALL ITS IMPRECISION, IT IS BEST LEFT WELL ALONE. KONG DID NOT FEATURE IN OUR AGREEMENT TO EXCHANGE AMBASSADORS WITH CHINA IN 1972 NOR, AS FAR AS I KNOW, WHEN WE FIRST RECOGNISED
THE COMMUNIST REGIME.
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HK SGD (6)
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LEGAL ADVISERS
RES, D
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3(4) OF THE PUBLIC RECORDS ACT 1968
PS| LORD GORONWY ROBERTS
MR HIBBERT MR CORTAZZ.
MR MURRAY
MR
FERGUSSON
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