2. The circumstances under which residents of Macao can aquire Portuguese › nationality was dealt with in the recent Research Department Note on Macao (relevant extract paragraph attached). This was seen in drait by both Lisbon and Hong Kong, and might therefore be presumed to be accurate. Never- theless, although the aim of the Portuguese Nationality Act of 1981 was to emphasize descent rather than place of birth in the aquisition of nationality, it seems that there may be some truth in the Trafalgar Housing promotional material quoted in the FT article.

3. A Portuguese press cutting of 25 March 1981 stated that the new law would allow naturalisation of foreigners over the age of majority who had lived for at least six years on Portuguese territory, had a sufficient knowledge of the language and sufficient funds to maintain themselves. have no copy of the law as enacted, I am unable to confirm whether or not, this provision remained unchanged. You may wish to consider refering this point to Lisbon.

As I

4. In case it may be of interest, I attach an FT article of October 1982 on this investment scheme, from which I see that 10 per cent of the company is owned by Ho Yin, China's unofficial representative in the territory.

21 January 1983

CC: Miss Vivian, FED

Mrs Dean, RD

D Mills

Research Department 233 3858 G85A/3

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