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to stand firm both on food stuffs and agricultural

inputs, although they might have to concede the latter

eventually. Natali had been very helpful at the

Council making it quite clear that the issue had

nothing to do with the assiette commune. The

Portuguese were wise to rediscuss the difference of

opinion over inward investment at this stage, lest

there be misunderstanding at the time of drafting the

treaty of accession.

B.

4.

Macao

Dr Marta said the Portuguese Government had

not yet decided what status to seek for Macao vis-a-vis

the Community.

They had had preliminary discussions

but had not yet had a clear response from the

authorities in Macao. It might be desirable to seek

DOM status (excluding textiles). This had not been

raised with the Community and the subject was likely to

be left to the very last stage of negotiations.

Mr Hannay said the question of Macao status was an

important matter for the UK because of the position of

Hong Kong. We had given the question of suitable

status for Hong Kong much thought, both in our first

accession negotiations and the second. We had in the

end decided only to seek GSP beneficiary status for

Hong Kong, not only because of legal and constitutional

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