CONFIDENTIAL

at the other Chinese people including our compatriots

in Hong Kong and Macao and overseas Chinese in making

urther contributions to the cause of reunifying China".

The second development was the agreement between China and

Portugal announced on 8 February to establish diplomatic

relations with immediate effect. Although in Chinese eyes,

Macao is a Chinese territory with a Portuguese administration,

this occasion was not used to challenge the status of Macao and no reference was made to Macao in the joint communique on

the agreement.

53. In Februsy the liinister of Foreign Trade, li Qiang, extended an invitation addressed to the "Governor of Hong Kong" to visit Peking in the spring of 1979 and thanked him for the

hospitality extended during his own visit in December. The

invitation was accepted on 5 arch and for the first time since

1949 a Governor of Hong Kong was able to ray an official visit

to China. The twelve-day visit ended on 4 April and was an

undoubted success. Sir Murray Maclehose was accorded a high-

level and friendly reception by his Chinese hosts and his meetings

with various Chinese Ministers included one with Vice-Premier Deng

Xiaoping.

CONFIDENTIAL

/ SECTION III

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