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complications but also because its level of industrial
development would have made it unacceptable to some
Member States as an Overseas Territory. This arrangement
had been acceptable for Hong Kong and had now worked
satisfactorily for ten years. For the UK, it would be
a serious matter if Macao was to receive better status
than Hong Kong. We would be concerned about a
Portuguese application for Overseas Territory status
for Macao. Perhaps in advance of putting any proposal
regarding Macao on the table in Brussels, the
Portuguese could advise us privately and let us have a
chance to comment? Had they been given any views by
the Chinese Government? Dr Marta replied that they had
consulted" both" ways but had not yet received an
answer. Overseas Territory status might be ideal for
Macao but not necessarily ideal for Portugal. Dr
Cascais asked how the UK had approached the Chinese at
the time of our own accession negotiations. Mr Hannay
explained that there had been no contacts with the
Chinese at that time, and no indication of their views.
At the time of British accession China did not
recognise nor have diplomatic relations with the
Community.
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