CONFIDENTIAL

O FED

HKGD.

Entry

Sc

PORTUGAL, CHINA,, HONG KONG AND MACAO

When I saw the Minister for Foreign Affairs today I told him that when his predecessor, Dr Sá Machado, had visited London in the Summer of last year it had been agreed that we should keep in close touch on

a.

Southern Africa;

b. China, Hong Kong and Macao.

I said that there had in fact been a full and useful exchange on (a), but the results on (b) had been disappointing and the political department had in fact declined to give us details of the negotiations preceding the agreement to establish diplomatic relations with China. I said that I hoped that we could in future keep in touch on Far Eastern matters.

2.

Dr Freitas Cruz said that he would be glad to do this. In fact there had been no recent development on Macao. He said that when diplomatic relations had been established there had been an understanding a verbal gentleman's agreement that the Chinese would not raise the problem of sovereignty in relation to Macao.

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3. He said that the Chinese Ambassador might arrive here. towards the end of the month and that the Portuguese Ambassador to Peking would be going to his post at the beginning of September.

4. He himself brought up the question of Maceo and the boat people. He thought that local relations with Hong Kong were good, but if there were any problems he asked me to let him know. He said that the area of Macao was extremely restricted and what he said suggested to me that the authorities there have pushed some boat people out to sea.

FEA 020

16 August 1979

H of C

Mr Ewing

cc:

S P Collis Esq SED, FCO

Chancery,

PEKING

n

·

Moran

cc:

Dr D C Wilson, Political Adviser HONG KONG

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