LDX 092/31

PEKING TL 122

GR 650

CONFIDENTIAL.

18

FEA 020

C. ANKED. ASED.

PF 50 1 AUG 1979

TELELETTER

FROM

T J B GEORGE, PEKING

020/354/1

30 JULY 1979

FOLLOWING FOR

R C SAMUEL, FED, FCO

CC

M I GOULDING, LISBON

DR D C WILSON, POLITICAL ADVISER, HONGKONG

(BY BAG)

SINO-PORTUGUESE RELATIONS:

MACAO

THE PORTUGUESE CHARGE, RAMOS, CONSULTED ME ON 26 JULY ABOUT A QUESTION RELATING TO MACAO. THE NEW GOVERNOR, EGIDIO,

10

IS ATTEMPTING TO GET FOR MACAO THE HEADQUARTERS OF THE WORLD TOUR IST ORGANISATION. HE HAD INSTRUCTIONS TO SOUND OUT THE CHINESE ABOUT THE ACCEPTABILITY OF THIS PROPOSAL.

2. RAMOS STARTED BY SAYING THAT AS I KNOW (SIC) IN THE NEGOTIATIONS TO ESTABLISH DIPLOMATIC RELATIONS BETWEEN PORTUGAL AND CHINA BOTH SIDES HAD ACCEPTED THAT MACAO WAS CHINESE TERRITORY UNDER PORTUGUESE ADMINISTRATION'' HE REALISED THAT OUR POSITION ON HONG KONG WAS DIFFERENT, BUT ASKED HOW WE MIGHT HANDLE A QUESTION LIKE THE LOCATION OF THE WTO HEADQUARTERS. I SAID THAT HONG KONG WAS BRITISH BY VIRTUE OF TREATIES (IN THE CASE OF THE NEW TERRITORIES ON A LEASED BASIS) AND THAT WE DID NOT ACCEPT THE CONTRARY CHINESE VIEW. IT WAS A POINT ON WHICH WE AGREED TO DIFFER. WHERE A DECISION RELATING TO HONG KONG WAS NEEDED ON WHICH THE CHINESE MIGHT MAKE A STAND OR HAVE A LEGITIMATE VIEW WE ATTEMPTED TO DO OUR HOMEWORK ON THE IMPLICATIONS BEFORE TAKING IT. WE CONSULTED THE CHINESE SPARINGLY, AND ONLY AFTER WE HAD FORMED AN APPRECIATION OF WHAT THE IR REACTION MIGHT BE. CONSULTATION SOMETIMES AMOUNTED TO TELLING THE CHINESE IN ADVANCE WHAT WE PROPOSED TO DO. WE HAD TO BE CAREFUL IF A CERTAIN ACTION, FOR EXAMLE, MIGHT GIVE HONG KONG THE STATUS OF A COUNTRY. IN THE CASE OF THE WTO, IF IT APPLIED TO HONG KONG, IT WOULD BE MATERIAL WHETHER THE ORGANISATION WAS GOVERNMENTAL, IN WHICH CASE THE PLITICAL IMPLICATIONS WOULD BE MORE SERIOUS THAN IF IT WERE AN ARRANGEMENT BETWEEN COMMERCIAL ORGANISATIONS. 1 SUGGESTED THAT IT WOULD BE WORTH LOOKING VERY CLOSELY INTO THE STATUS OF THE WTO BEFORE TAKING ACTION. RAMOS SAID HIS INSTRUCTIONS WERE URGENT, BUT SEEMED TO THINK IT SENSIBLE THAT THE PORTUGUESE GOVERNMENT SHOULD LOOK TWICE BEFORE LEAPING.

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