Even

Dr. Gamas

not Swe!

businessmen had made plans to move their operations to Singapore.

Lady Young said that we recognised that the negotiations would be

difficult. The Governor of Hong Kong was playing a full part and we

were keeping EXCO informed, The important thing was that the talks were continuing. Dr Gama said that the position of Macao was

different from that of Hong Kong in that Portugal did not consider it

a colony. According to the Constitution, Macao did not belong to

Portugal (in answer to a query his officials pointed out that

this was not strictly accurate): it was defined as a territory under

Portuguese administration. In a sense this definition was a condition for establishing diplomatic relations with China. They had no wish

for a serious disagreement with the Chinese. Mr Byatt suggested that

he might follow up with the Portuguese Foreign Ministry on the discussion

in New York. Lady Young thought that this would be helpful. Dr Gama

undertook to brief the Embassy on his meeting with the Chinese Foreign

Minister,

9. In concluding the meeting Lady Young thanked Dr Gama for

Portugal's support over the Falklands. We were most grateful to

them for abstaining on the Falklands Resolution at the General

Assembly last year and happy that they intended to do so again this

year. Dr Gama said that this should be seen as a mark of respect

for Portugal's oldest ally; in some ways Portugal's wider interests

would have been better served by a vote in favour of the resolution.

The Portuguese community in Argentina had had a hard time during the

fighting for the Falklands. Lady Young drew attention to the position

of the British Community in Argentina. We wanted better relations with Buenos Aires but the Argentine government had not yet even declared a cessation of hostilities.

10. The meeting ended at 12.50pm.

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