CONFIDENTIAL & PERSONAL

3. Cultural and defence activities will probably have to be limited to more traditional fields.

But the upcoming celebration

CAA

alecion

of the Portuguese Age of Discoveries may provide us with

We should not lose sight of the. opportunities in both fields. NATO re-equipment programme, which could lead to the supply of Lynx helicopters for the new frigates being built under the I realise this might mean us having to cough up programme. additional money to that which we have already offered, but we would be grateful for the Department's vigorous support on this issue. The longer we leave our offer to trail, the higher the final bill is likely to be, and meanwhile we are getting no cudos

The Chief of at all for it. Nor are NATO defences benefitting. the Portuguese Naval Staff could usefully be invited on an official visit to the UK meanwhile, and when some other senior appointments have been made (they are due in April) we will consider more such visits.

4.

Gelhi it!

On political subjects, we hope that the AUS for Africa (or the head of one of the relevant departments) would be able to come to

I am hoping to Lisbon for a further round of talks with Salgueiro. see him soon and, although it is presumably up to the Portuguese to propose dates, I will hint at the need to make sure this cooperative

On Macau, once the Portuguese have arrangement does not lapse.

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signed an agreement with China, they may be more willing to cooperate and such cooperation would be in both our interests over the next decade. Hong Kong Department are already considering whether increased Hong Kong/Macau contacts would be useful. Perhaps a visit by the Head of Hong Kong Department and/or Robin MacLaren

It is difficult at this stage to suggest a here would be helpful. Portuguese who could usefully go to the UK, since Ambassador Medina, who is involved with the present Macau negotiations, may drop out of the picture once the agreement is signed.

5.

Perhaps you could consider these ideas within the Department and we can follow them up whey you are here next month, and when I hope the Ambassador will be able to add his comments.

You

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Dong Munti

PP

CDS Drace-Francis

CONFIDENTIAL & PERSONAL

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