CONFIDENTIAL

123651 MDHIAN 9386

7. CATARINO EXPRESSED ENTHUSIASM FOR REMAINING IN CLOSE TOUCH, AND EMBARRASSMENT IN NOT YET RESPONDING TO MCLAREN'S INVITATION TO MEET HIM IN LONDON. HE HAD IT IN MIND TO WRITE SOON.

COMMENT

8.

THE MACAU JLG SESSION WAS CLEARLY IN SHARP CONTRAST TO OUR OWN, POSSIBLY DELIBERATELY SO ON THE CHINESE SIDE. THE MOST INTERESTING AREAS FOR LISBON TO FOLLOW UP WOULD I THINK BE THE EXTENT OF CONSULTATIONS ON THE GENERAL STATUTE FOR MACAU, PORTUGUESE IDEAS FOR INFLUENCING THE NEW BASIC LAW AND THE NEW ROLE ENVISAGED FOR THE SECRETARY FOR TRANSITION. CATARINO COMPARED THIS LATTER FIGURE

GIVEN

TO HONG KONG'S GENERAL DUTIES BRANCH. IF SUCH A ROLE IS ENVISAGED IT IMPLIES A PORTUGUESE ATTEMPT TO INCREASE CONSIDERABLY THE INFLUENCE ON THE POLICY PROCESS OF THE INHABITANTS OF MACAU. THE FACT THAT THE CHINESE HAVE ALWAYS BEEN MORE INTRUSIVE IN MACAU'S INTERNAL AFFAIRS THERE IS A POTENTIAL FOR FRICTION IF THE PORTUGUESE ARE DEVELOPING A WILLINGNESS TO CONTEST IT. IT WOULD APPEAR THAT THE LAND COMMISSION IS ONE AREA WHERE THIS IS HAPPENING.

9. MORE GENERALLY, IT WOULD BE INTERESTING IF LISBON COULD DISCOVER ANY MORE ABOUT PORTUGUESE DEVELOPMENT PLANS FOR MACAU. AS IN HONG KONG THERE HAVE BEEN HINTS IN THE PRESS THAT THE CHINESE ARE SUSPICIOUS THAT THE PORTUGUESE DEVELOPMENT PROJECTS ARE INTENDED TO PROVIDE AN OPPORTUNITY FOR THE PORTUGUESE TO CASH IN RAPIDLY BEFORE 1999, LEAVING MACAU'S FINANCES IN A PARLOUS STATE FOR THE CHINESE TO INHERIT.

GALSWORTHY

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DISTRIBUTION

63

ΜΑΙΝ

60

.HONG KONG AGREEMENT

. (RESTRICTED)

LIMITED

HKD

SED

HD/FED

PAGE

NEWS D PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

MR BLATHERWICK

3

CONFIDENTIAL

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