in fact, involve postponement for quite a long

time. I therefore pointed out to Kitson that

our understanding was, as indeed we made clear

to Sir Alexander Grantham before he left, that

the decision was to defer the question for the

time being without any particular indication

as to when the matter might be brought up again.

The Foreign Office have agreed that this does

in fact represent the position.

There is a third point dealt

with in Kitson's letter, namely the question of

consultation with the Portuguese Government

about Hong Kong and Macao. The views expressed

in the third paragraph of Kitson's letter are

those of the Foreign Office, and if you have

any views on the question we should certainly

be glad to have them. The Foreign Office have

told us that the last thing they want to do

is to get too closely involved with the

Portuguese over Macao. As you probably know,

the operative instrument governing Macao's

status is the Sino-Portuguese Treaty of 1888

which confirmed "The perpetual occupation and

government of Macao and its dependencies by

Portugal". Macao was never formally ceded to

Portugal as Hong Kong was to Great Britain, and

I gather there may accordingly be some substance

Mu Chinese

in any claim by the chinese that Macao remains

under Chinese sovereignty. This being so

it seems clear that it would be against our

interests to allow our unassailable title to

Hong Kong to become linked or associated with

the more vulnerable Portuguese title to Macao.

But I should like to have any views you may

care to put forward.

Yours sincerely,

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