CONFIDENTIAL

022371

MDTTAN 6394

IS THAT THE PORTUGUESE ARE IN RATHER A MUDDLE OVER THIS QUESTION.

6.

I ASKED HIM ABOUT MACAU AIRPORT. HE SAID THAT THE MAJOR PART OF THE CONTRACTS HAD BEEN LET, AND MOST OF THE WORST DIFFICULTIES WITH THE CHINESE HAD BEEN OVERCOME. HOWEVER ZHUHAI HAD NOT GIVEN UP THEIR AMBITIONS TO HAVE AN AIRPORT, AND THIS COULD CAUSE SERIOUS DIFFICULTIES. THE PORTUGUESE WERE LOBBYING IN PEKING TO TRY TO SEE THAT ZHUHAI'S PLANS WERE SCRAPPED FOR THE TIME BEING. THE CHINESE

WERE ALSO PROVING DIFFICULT ON THE INSTITUTION OF AIR SERVICE

AGREEMENTS: THEY HAD AGREED TO HOLD A WORKING PARTY ON THIS SUBJECT, BUT IT HAD NOT YET MET. THERE WERE ALSO SOME DIFFICULTIES ABOUT THE OVERALL FINANCIAL PLANS (SNAP).

SIGNED: GALSWORTHY

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