HKK RECEIVED

020/1

REGISTRY NO. 5:

2 40CT 1983

DESK OFFICER

INDEX

PA

REGISTRY Action Taken

fu

R JF Hoare Esq

HKGD

FCO

RESTRICTED

But

British Embassy

LISBON

19 October 1983

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Прино

My Moms

29

You will recall

24110

Yes,

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Точню

PA

Dear Hoare,

MACAU: PROPERTY SALES AND RESIDENCE RIGHTS

1.

My letter of 24 March refers.

2. The Portuguese Deputy Prime Minister and Minister of Defence, Mota Pinto, who has responsibility for Macau within the government has just finished a visit to the territory.

3. It is worth recording in the context of my letter under reference that "Expresso" a usually well-informed weekly newspaper has suggested that the main reason for Mota Pinto's visit was to sort out the mess over the Trafalgar housing project in Macau. According to the newspaper Mota Pinto's visit was arranged at the last minute, in place of a planned visit for early next year. They suggest that the visit was the result of pressure from John Wu who has set up an investment company in Lisbon (FINC) headed by Augusto Athaide and Manuel Noronha Costa, close friends of the former Deputy Prime Minister, Freitas do Amaral. According to "Expresso" John Wu was keen to get his Taipa project moving, because of Trafalgar's financial difficulties, and tried to obtain certificates of residence in Portugal for those who bought apartments in the project. He proposed to invest the profits made in Macau in Portugal through FINC (he was hoping for profits of 8 million contos, about £40 million).

4. At first the Governor supported the project, and Angelo Correia, then Minister of the Interior visited Macau and began work on legislation in Portugal to allow Macau certificates of residence to be recognised in Portugal. The Governor has however now withdrawn his support, and refused to issue the local certificates on which the scheme depends, because of rumours of the huge bribes involved, and because of Trafalgar's difficulties. Mota Pinto denied that he was going to meet

/John Wu

RESTRICTED

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