VI) HONG KONG ACAU
IN ANSWER TO AV INQUIRY FROM THE SECRETARY OF STATE,
DR FUTSCHER PEREIRA SAID THAT HUANG MUA (WHO HAD BEEN IN LISBON THIS WEEK) HAD SHOWED NO INTEREST IN DISCUSSING THE
FUTURE OF MACAU: HE HAD SPENT FIVE HOURS TALKING TO HIM WITHOUT
THE SUBJECT REING MENTIONED. THE PORTUGUESE DID NOT EXPECT
ANYTHING TO HAPPEN IN MACAU BEFORE THE END OF OUR NEW
TERRITORIES LEASE.
VII) BILATERAL
THE PORTUGUESE MADE THE EXPECTED PITCH ON TEXTILES. THE
SECRETARY OF STATE RAISED COMPENSATION FOR FARMERS.
BOTH THE PRIME MINISTER AND FOREIGN MINISTER RECOGNISED THE DESIRABILITY TO REMOVING THE QUESTION FROM THE BILATERAL AGENDA AND SAID THEY WOULD DO THEIR BEST ALTHOUGH THEY COULD MAKE NO PROMISES. THE MATTER SHOULD SE RAISED WITH THE MINISTER
OF FINANCE. DR SALGEIRO REACTED CAUTIOUSLY, AND OBSERVED
THAT IN RECOGNITION OF THE LEVEL OF GERMAN ECONOMIC ASSISTANCE
THIS QUESTION HAD BEEN HANDLED IN THE GERMAN CASE ON A GOVERNMENT
TO GOVERNMENT BASIS RATHER THAN ACCORDING TO THE LETTER OF THE PORTUGUESE COMPENSATION LAW. THE AMBASSADOR SUGGESTED THAT SOME
FORM OF SPECIAL ARBITRATION MACHINERY MIGHT HELP IN RESOLVING
THE OUTSTANDING CASES. DR SALGUEIRO UNDERTOOK TO PURSUE THE QUESTION WITH THE MINISTER OF AGRICULTURE.
FCO PLEASE PASS SAVING TO GIBRALTAR
BYATT
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