(c)

2

CONFIDENTIAL

Airport: They have definitely decided to go ahead. They have Chinese agreement in principle but details remain to be worked out. They believe there would be scope for some international services and claimed

that, initially at least, the effect on Hong Kong

should be minimal.

(d)

(e)

I

Helicopter Services: They support the proposal for 10

non-scheduled services a day, to be run by STDMS.

said we would, of course, examine any proposals.

Non-scheduled flights were obviously easier than

scheduled but there still were practical problems to

be overcome.

Vietnamese Refugees: I urged Macau to stop sending

boats to Hong Kong. They claimed they were not

deliberately doing this and said that they had great

difficulties in taking anyone else in. I nevertheless pressed them and they agreed that the matter could be

looked at further.

Importation of Labour

4.

Macau already allows workers to come in, mainly to

work on PRC construction projects. They expect this to

continue.

Composition of Macau Legislative Assembly

4.

They have not had any direct representations from the

Chinese on the question of increasing direct elections to

Assembly. They are fully aware of likely Chinese sensitivities and of the need to tread carefully. They expect that the

Chinese will demand that the present plans (directly elected,

indirectly elected and nominated) be retained for the time

being.

CONFIDENTIAL

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