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M. Home Pl.sph Paragraphs 3-5 are interesting.

if 14/9

and quite hopegil. But we must watch

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BTC Hong Kong

SED, FCO

HKGD, FCO

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Mr Harston

Mr Harris

Ambassador o/r

Micke

02211

Mrs Dean

Miss Mills

Research Dept

MACAU

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10/17

1. I had lunch today with the Director of the Macau Office in Lisbon, Dr Fereira da Silva.

2. Dr Fereira da Silva was nominated by Governor Melo de Egídio and appointed by the government. He is directly responsible to Dr Ribeiro e Castro, the young Secretary of State assistant to the Vice-Prime-Minister, Professor Freitas do Amaral. His office functions as a channel of communication between the government of Macau and the central government.

Macau, Hong Kong and China

3. Dr Fereira da Silva told me that the Chinese had demanded that the Portuguese change the status of Macau from that of an overseas province of Portugal (as it had been before the Revolution) to a Chinese territory under Portuguese administration, before they would agree to opening diplomatic relations. However China had no interest in upsetting the status quo.

admit that

4. On Hong Kong he was convinced that the Chinese would not wish

change the status quo, but would expect the UK to a of Hong Kong (not just the New Territories) was I of China, under British administration. He sa opinion the Chinese took a very longterm view of the Ty hoped that one day Hong Kong and Macau would re

not until China began to catch up with them eco: diate problem for them was to save face by secu ission that the territories were Chinese territo:

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that in his problem. srt to China.

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Macau and Hong Kong were too important economic lly and incially for the Chinese to throw away. Military there would no problem in occupying the territories, but Chi would then faced by the problem of absorbing their populatics and making che economic short fall. All the evidence pointe to the fact

China intended that Hong Kong and Macau should ontinue as the Why else were they developing the special ecomic zone in hinterland? If China had not occupied Macau dung the ural Revolution, why should they do so when they had a moderate ernment?

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