UNCLASSIFIED

British Embassy

11 Guang Hua Lu Jian Guo Men Wai Peking People's Republic of China

Telex 22191 Cable Prodrome Peking

Telephone 521961/2/3/4/5

Richard Fletcher-Cooke Esq

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14 April 1987

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MEETINGS BY M. DE CLERCQ, EUROPEAN COMMISSIONER WITH CHINESE LEADERS

1.

The Belgian Embassy has sent us records of de Clercq's meetings with four Chinese leaders:

Madame Chen Muhua,

President of the People's Bank of China

Zhou Nan,

Vice-Minister of Foreign Affairs

Li Peng, Vice-Premier

Ulanhu,

Vice-President of the PRC

In addition de Clercq met Zheng Tuobin, Minister of Foreign Economic Relations and Trade and Qin Zhongda, Minister of Chemical Industries. However, no one from the Belgian Embassy was present at these meetings. Although much of what these leaders said to de Clercq adds little to our knowledge of the current economic, internal political and external political scene, there are a number of points of interest.

2.

Macao (Meeting with Zhou Nan) Zhou Nan pointed to two differences between the Agreement on Macao and the Hong Kong Agreement. One was caused by the presence of Portuguese born in Macao whom Portugal does not wish to see returning to Europe; indeed all parties would wish to see them remaining in Macao. Zhou said that China understands this situation and has not excluded the possibility of including certain of such people in a future administration of Macao. A second difference concerns the stationing of troops in Hong Kong and Macao. Zhou said that this question does not rise in the case of Macao whose territory is so much smaller than that of Hong Kong; in addition Portuguese troops have never been stationed there. Therefore save in exceptiona circumstances, Chinese troops will not be sent to Macao. The question of Macao having separate status under GATT has not yet been considered. It will, however, be considered in the context of the Joint Liaison Group.

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