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SPECIAL REGIMES: MACAO
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RNL
1. Mr Luce has commented on my minute of 8 July, saying that perhaps we could find out more about the secret understanding between Portugal and China referred to in para 5 of the minute.
2. Neither we nor the Americans have had any firm confirmation of such an arrangement. We suspect that what exists is an oral, and temporary, understanding reached by the two sides when diplo- matic relations were established in 1979. This was what was implied by the Governor of Macao in a recent conversation on the subject with the Governor of Hong Kong. Then, as in previous reports, the terms of the arrangement appeared to be that Macao is regarded as Chinese territory under Portuguese administration. When referring to the possibility of future change (in the con- text of which China was mentioned as the ''only destination'' for Macao), the Governor of Macao alluded to ''certain procedures'' that would have to be agreed in order to ensure that the transfer was orderly and not sudden.
3.
Portugal has not formally renounced the treaty of 1887 referred to in my earlier minute.
4.
We have mentioned the conversation between the Governor of Macao and the Governor of Hong Kong separately to the Private Office.
11 July 1983
cc: PS/PUS
Mr Giffard Mr Donald
Planning Staff HKD
CONFIDENTIAL
PA B Thomson
Far Eastern Dept