CONFIDENTIAL COVERING SECRET.
31
Mr Sullivan
FED
Pa
FROM: K C Walker
Asian Region
Research Department
DATE: 13 January 1987
HKK 020/2
EVED IN REGISTRY
21 JAN 1987
OFFICER
cc: Mr Beamish, FID
ROCISTRY
(with all encs) Mr Layden, HKD
(with encs b and c) Mr Hollambry, SED
(with encs b and c) Mrs Gillon, RD
(with encs b and c)
MACAO
PA
21
1. Your minute to me of 9 January and Mr Beamish's (FID) minute of 7 January to Mr Hum (HKD).
X
2.
I attach:
(a) a copy of a paper written here in 1983 summarising the information then available to us concerning the "agreement" on "understanding" on Macao reached between China and Portugal in 1979;
(b) a copy of a Chinese official news agency report of 3 April 1985 referring to the "understanding";
(c) the translation of a Radio Lisbon report of 7 January 1987 which refers both to the 1979 Sino-Portuguese contact and to the current negotiations on Macao.
3. I conclude from all this that when China and Portugal agreed to establish diplomatic relations in 1979 there was at least an oral agreement (presumably recorded in written form by both sides) whereby Portugal acknowledged that Macao was not Portuguese territory even though it was under Portuguese administration. This would be in accordance with Article 5 of the Portuguese Constitution of 1976 which did not include Macao (unlike the Azores and Madeira) as a territory forming part of Portugal and stipulated:
4.
"The territory of Macao, under Portuguese administration, shall be governed by a Statute in keeping with its special situation".
It also seems likely that in 1979 the Portuguese may have indicated that they understood the Chinese wish at some future time to hold negotiations on Macao's return to
CODE 18-77
CONFIDENTIAL COVERING SECRET