Mr McLaren

CONFIDENTIAL

European Council: Statement on China

The Secretary of State had some discussion with the Portuguese Foreign Minister about the handling of relations with China in the context of discussion of the EPC statement. The Portuguese Foreign Minister was somewhat reluctant to see any reference to Hong Kong because of Portugal's desire not to single out Macao. He did, however, agree to the brief reference eventually included. He told the Secretary of State that the Portuguese had had fairly positive signals from the Chinese in Macao. The Chinese had agreed:

to postpone the JLG;

to substitute lower level contact;

to make some reassuring concessions to Macao.

The Secretary of State assumes we already knew of these developments and are following up in greater detail with the Portuguese. The Secretary of State wonders whether

Sir Hal Miller might be able to follow up some of these points during his visit. Or would this risk disclosure of his role?

28 July 1989

cc:

PS/Lord Glenarthur

Sir J Fretwell

Mr Gillmore

Mr Paul, HKD

Mr Millington, FED

CONFIDENTIAL

think

(J S Wall)

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