CODE 18-77

RESTRICTED

2

Reference

From:

Date:

Robert Madelin' 12 June 1991

Mr Pakenham

MACAO, HONG KONG AND TES

TI

M: Nuttall asked me over lunch today to mention to you 2 point on which he would telephone you shortly for a personal.

staet.

2. The Head of the Macao Representation here had telephoned him recently, off the record, to ask whether the Couaiseion would respond positively to a Macao request for a

request for a trado and cooperation agreement with the IC. Nuttall had simply taken note, and vac sitting on the affair for the moment,

?

Nuttall'« initial reaction wae that Macao was very small LOGI. and that Peking had its position there sewn up. being

50,

This and since the PRC/Portugal declaration allowed such agreements, Paking right not make much of a fuss on MAC20 if Macao in time made a formal request for such agreement with the BC.

4.

Nuttall's concern was what all of

was what all of this might imply fox Hong Kong. The wording of the Sino-British declaration was ident cal on this point to the Macao declaration. Would Hong that they had to ask for an agreement too?

an agreement. would Peking be as ong would not want to have a

Kong

aid ak doubt P

NU

inforua

r the new airport.

concluded that he would be

If they relaxed? No

second experience

gratefuL for an

UK steer, He was naturally kaan that none of this should get back to his superiors. Nor did he wish the Hong Kongers to be brought in.

Nuttall did not ask for my iamediate reaction. not give ore.

and I did My instinct is that there would be othing An such an agreement for Hong Kong (let alone for Macao). would be perfectly feasible for the HKG to decide not pursue parallel treatment if Macao decided in due course bid for

on the other hand, treatment could be had without undue political ructions,

if parallel Eight be desirable. Nor is there any economic

an agroecent.

Peking should object to an agreement.

Robet jacelity

CO

to

it

reason why

Robert Madlin

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81:E1 16 NOT ET OHL

SBSSNUE "O' ' 'X'O

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