CONFIDENTIAL

HKB 020/4

010646

MDHIAN 1555

56

CONFIDENTIAL

FM LISBON

TO IMMEDIATE FCO

TELNO 235

OF 08075OZ AUGUST 89

INFO IMMEDIATE HONG KONG, UKREP JLG HONG KONG, PEKING

TOP COPY Q IST ?

57

MY TELNO 231: SINO-PORTUGUESE RELATIONS: JLG MEETING LISBON,

31 JULY.

-

3 AUGUST

1. CATARINO, LEADER OF THE PORTUGUESE SIDE, GAVE AN EC BRIEFING ON 4 AUGUST ABOUT LAST WEEK'S MEETING OF THE SINO-PORTUGUESE JLG IN

LISBON.

2.

THE LAST FORMAL MEETING OF THE JLG HAD TAKEN

PLACE IN LISBON FROM 3-4 APRIL. THE NEXT MEETING HAD BEEN DUE TO TAKE PLACE IN MACAO BUT THE EVENTS OF 3-4 JUNE IN PEKING HAD INTERVENED. CATARINO EXPLAINED THAT THE PORTUGUESE HAD THEN TAKEN THE DECISION TO REDUCE TO A MINIMUM JLG CONTACTS WITH THE CHINESE. RAMOS, THE HEAD OF THE LAND COMMISSION, HAD BEEN WITHDRAWN FROM MACAO (ALTHOUGH THIS HAD NOT BEEN PUBLICLY ANNOUNCED) AND THE PORTUGUESE HAD GENERALLY MADE IT PLAIN TO THE CHINESE THAT THERE COULD BE NO BUSINESS AS USUAL. IN PARTICULAR, THEY HAD INSISTED ON A 'NEW ROLE' FOR THE PORTUGUESE ADMINISTRATION IN

MACAO. AT THE SAME TIME, THE PORTUGUESE HAD NOT WANTED TO SLOW THE ECONOMY AND REDUCE MACANESE CONFIDENCE FURTHER. HENCE THE SUGGESTION OF INFORMAL TALKS IN LISBON FROM(17-18 JULY AT WHICH CHINESE AND PORTUGUESE OFFICIALS HAD DISCUSSED THE FUTURE OF THE LAND COMMISSION

AND JLG ACTIVITY. THE PORTUGUESE HAD MADE IT PLAIN

THAT IT WAS UP TO THE CHINESE TO RESTORE CONFIDENCE IN MACAO BY

TAKING A MORE POSITIVE ATTITUDE IMMEDIATELY

·

AFTER THOSE INFORMAL TALKS, THE CHINESE HAD GIVEN THE LAND COMMISSION IN MACAO THE GO-AHEAD FOR THE NEW AIRPORT.

3. CATARINO SAID THAT LAST WEEK'S JLG MEETING HAD REVEALED A

CONTINUING POSITIVE CHINESE ATTITUDE. THE ATMOSPHERE HAD BEEN

PRAGMATIC AND THE CHINESE HAD MADE FAR FEWER SPEECHES THAN USUAL. THEY HAD APPROACHED THE DISCUSSIONS IN A GENUINE SPIRIT OF COMPROMISE AND WERE FAR LESS AGGRESSIVE THAN ON PREVIOUS OCCASIONS. THEY HAD ACCEPTED THE PORTUGUESE ARGUMENT THAT IT WAS STILL TOO

EARLY FOR A JLG MEETING IN PEKING. THEY HAD ALSO ACCEPTED THAT THE ATMOSPHERE OF THE MEETING SHOULD BE DESCRIBED IN THE COMMUNIQUE (SEE MIFT) AS ONE OF 'FRANKNESS AND COOPERATION' RATHER THAN (AS THE CHINESE HAD WANTED) 'FRIENDSHIP AND CORDIALITY'. THE CHINESE HAD

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CONFIDENTIAL

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