Macao file

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RECEIVED IN REGGIZY NU

- 4 OCT 1983

DESK OFFICER INDEX

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CONFIDENTIAL

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RECORD OF A MEETING BETWEEN THE FOREIGN AND COMMONWEALTH SECRETARY

AND PORTUGUESE FOREIGN MINISTER, HELD IN 1 CARLTON GARDENS, 22 SEPTEMBER 1983, 2.45-3.30pm

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Present

Sir G Howe

Mr R Whitney

Mr H C Byatt

HM Ambassador at Lisbon

Mr C M James

AUS

Mr D H A Hannay AUS

Mr D C Wilson

Head of SED

Mr R B Bone

APS

Mr RJ Codrington SED

Dr Jaime Gama

Minister for Foreign Affairs

Dr J Hall Themido

Secretary General, MFA

Dr Vaz Pereira

Director General of Political Affairs, MFA

Sr Macedo

Minister-Counsellor, Portuguese

Embassy

Dr Castro Brandao

Assistant Private Secretary

HONG KONG

During a general discussion, the Portuguese Foreign Minister

asked to be brought up to date on our negotiations with China.

1.

2.

The Secretary of State said that there were important differences between Hong Kong and Macao. Britain's treaty rights over all but the small area of sovereign territory expired in 1997. We believed that the prosperity and stability of Hong Kong depended upon the unique conditions built up over many years. We were trying to persuade China that an atmosphere of confidence must be maintained for Hong Kong to continue to prosper. Some continuity beyond 1997 would be essential for this. There could be no doubt

that sovereignty would be returned, but that need not involve an

automatic transfer of administration. China held that sovereignty and administration were indivisible. The latest round of talks

was taking place that day.

CONFIDENTIAL

13.

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