CONFIDENTIAL

B

of 1 October 1990). The post is a Presidential appointment,

and the scandal threatened to damage President Soares'

prospects for reelection in January.

He declined to appoint

a new Governor in the run-up to the Presidential elections,

but now that he has secured his own reelection an

announcement is expected in March.

Exchanges with the Portuguese on Macau/Hong Kong

6.

Mr Maude visited Macau and called on the Governor on

7 April 1990. There are occasional meetings between the

Governors of Hong Kong and Macau and UKREP JLG maintain

regular contact with their opposite numbers in the

Portuguese JLG team.

Sino-British JLG

7.

After the setback following the Tiananmen Square

incident relations in our JLG have returned to a more normal

level. Progress is still slow, however, on a number of

routine subjects and deadlocked on others. Subjects

currently on our agenda include: Court of Final Appeal,

Defence lands, Bill of Rights, Air Services Agreements and

Investment protection and Promotion Agreements.

Hong Kong Department

20 February 1991

CONFIDENTIAL

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