RESTRICTED

-2-

and the Portuguese authorities, a solution which would not affect the standard of living of the population or the interests of foreign investors in Macao." As you will see from the record of the Secretary of State's meeting with Futscher Pereira, the Fortuguese do not believe that the Chinese wish to discuss the problem of Macao until the Hong Kong lease runs out.

5. Huang Hua's discussions with Portuguese leaders covered the whole spectrum of international affairs, including Namibia, Afghanistan, the Middle East, South East Asia and North-South relations in exhaustive detail. On departure Huang Hua said thai the visit had been a great success and that there had been a convergence of views on international affairs.

Quer

Yours

Jonathan

J N Powell

CC: FED FCO

HKGD, FCO

Chancery, Peking Hong Kong

Page 90Page 91

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