Hole minute below
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R/u. Mr. Gnuts
Mr. Hopleina Mr. Williams Sh
copy as norway within
FW).
JB11/9
CALL ON PROF DOUTOR. JUAO DE DEUS PINHEIRO, 1630 HOURS, 8 SEPTEMBER
SOUTHERN AFRICA AND MACAU
Most of my conversation with Sr Pinheiro today was taken up with Southern Africa and particularly with Angola.
2. Sr Pinheiro had said that he had very much valued his close
many issues but particularly cooperation with Sir Geoffrey Howe on Southern Africa and Macau. He spent little time on Macau saying only that our objectives were the same even though strategies in achieving our objectives were different.
our
3. He said that he found the British and Portuguese attitudes
In relation to South Africa, on Southern Africa particularly close.
he believed that we both agreed on the importance of encouraging South Africa. He believed that Genscher was at last coming round to our point of view. It was important that we should not dis- couarge the South Africans by going down the same road as the Americans had done of financial sanctions, although Portugai had tried to help South Africa.. through Macau UK had tried to help through Hong Kong. African elections and the Secretary of State's statement to the press, a copy of which I gave afterwards to a member of his gabinete.
as he believed the I mentioned the South
4'. Sr Pinheiro then spoke about the need for economic help for Angola. In reply to my question he said he was not talking about
existing instruments, giving this through Lome or indeed through any nor should it take the form of classical economic aid, e.g. subsidies or loans. The Portuguese were working on a scheme for investment
They envisaged it being guarantees for private companies.
principally the European scheme although the Americans might be brought in. It was important to keep out the Japanese and Taiwanese and others. In order to encourage firms, EC governments should give larger investment guarantees of a few points above the normal level. This would not cost governments any money because once the political situation in Angola was stable, it was impossible for firms not to make money.
The guarantees would simply encourage them to set up. It might be an idea to prevent competition between European companies by agreeing on particular sectors for particular national firms. Portugal hoped to have developed its ideas by the second half of next year.
5. I said that this sounded very interesting and that I would report it carefully. I said that I thought Lome already
had
a section of investment guarantees but Sr Pinheiro said that
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