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which the Portuguese did not attain was a handover date some time

in the first decade of the next century. They argued that this was

necessary to allow sufficient time to groom local administrators

capable of running the SAR (the Macau public service, unlike that of

Hong Kong, contains only a very small ethnically Chinese element.

The Chinese were adamant, however, that the transfer must take place

before the end of this century, a point which the Portuguese had

eventually to concede.

4.

The Government and inhabitants of Macau were not informed of

the progress of the negotiations. There was no representative of

the Macau Government in the Portuguese negotiating team. There was

surprisingly little interest in the territory, either in the

negotiations or the eventual agreement. Indeed, interest is

probably greater in Hong Kong than in Macau. The general feeling

to have been that Macau was already acknowledged to be Chinese

territory; that the Hong Kong agreement effectively determined the

shape of Macau's future; and that it was predictable that an almost

identical Joint Declaration should lay the basis for a Macau SAR.

5.

Our main interest throughout the negotiations was in

impressing on the Chinese the fact that arrangements in Macau would

be very closely studied in Hong Kong. Any belief there that Macau

had somehow got a better deal would be bad for confidence. The

Chinese were receptive to this point. On publication of the Macau

agreement, the reaction in Hong Kong was generally favourable, with

few suggestions that Macau had done better.

6.

The one area to attract such suggestions was nationality

arrangements. But in fact the Chinese position is identical where

Macanese holders of Portuguese passports and Hong Kong holders of

British passports are concerned. Such differences as there are

between these two categories lie in the existing nationality

legislation of Portugal and Britain. Portuguese passport holders in

Macau have the right of abode in Portugal while BDTCs (and BN (0)s)

in Hong Kong do not have the right of abode in the UK.

7.

On 30 May, Pinto Machado, Governor of Macau, resigned. His reasons for doing so were not clear, but it seems likely that he was

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