Cuell

SECRET

Foreign and Commonwealth Office London SW1A 2AH

Dr D C Wilson

Political Adviser

Government Secretariat

HONG KONG

Telephone 01-

233 3184

Your reference

Our reference HKK 040/1

Date

6 May 1981

iou

See

113

+

Dear Davril,

нск оной

RECEIVED IN REGISTRY NO. 51

08 MAY 1931

DESK OFFICER

INDEX

N

PA

PAPER ON THE FUTURE OF HONGKONG: MACAO ANNEX &85.

ALA

REGISTRY

Action Taken

AW 75

1. Thank you for your letter of 16 April with the draft annex. Subject to some scrutiny by Research Department, I think it is just what's needed.

2. There is, however, one aspect in which the draft is out of pace with developments, and that is the reference to the confidential understanding between China and Portugal in 1979. Song Zhiguang's statement to Reuters on 31 March (Peking telegram No 22) makes it clear that in Chinese eyes at any rate Lisbon Kave conceded Chinese sovereignty, and we have amended the draft to take account of this point. I enclose a re-draft of paragraph 6.

acterised below

Juus

Dich

R D Clift

Hong Kong and General Department

SECRET

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