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8.
We were told that the Chinese have now accepted in principle that there should be an Article in the Basic Law allowing Macau to have air service agreements.
9.
Portugal was still pressing for a clause stating that the death penalty would not be imposed, but the Chinese were resisting this.
10.
Portugal was pressing for a clause about the ICCPR and the Chinese accepted in principle that there should be wording similar to Article 39 of the Hong Kong Basic Law. Portugal was now considering the reservations which it would make to the ICCPR in respect of Macau before it was extended to Macau.
11.
Article 144 of the Macau Basic Law, on contracts and franchises, is of concern. It gives the Chinese a power to judge in 1999 which contracts they will accept and which they will not. The Portugese have been told that a member of the Chinese side of the Joint Liaison Group will carry out this vetting. The Macau Government were adamant that this clause
must go.
They had however agreed to renegotiate the TDM and Telecommunications franchises, both of which were awarded after the signature of the Joint Declaration. We expressed some
The surprise at this and explained the situation in Hong Kong. Macanese said that they had in fact wanted to change these two franchises anyway. Under Portugese law the Governor had large powers to do so unilaterally.
Land Commission
12.
We were told that work in the Macau Land Commission was now going smoothly. Macau presents its annual plan by 15
CONFIDENTIAL