TNAG-0752-FCO40-956-Future-of-Hong-Kong-1979 — Page 158

CODE 18. 17

Reference

49

CONFILENTIAL

Mr McLaren

STATUS OF MACAO

1. I have now received the attached papers from Southern European Department about the Portuguese statement of 6 January 1975. As you will see, the confusion over the Chinese attitude seems to have arisen from a misunderstanding. Lord Moran told me on the 'phone on 30 June that he had been told by the Folitical Director of the Portuguese FA that the Chinese delegation to the talks in Faris last month had asked for a reiteration of this statement. The Political Director had described this statement as an affirmation of Portugal's belief that hacao is an integral part of China. But as you will see, it is no such thing: the reference is to Taiwan, not to liacao, and it is not in the least surprising that the Chinese should ask for a reiteration of this as a preliminary to the establishment of diplomatic relations. The statement does also mention Macao, but in terms that are not greatly different from the standard Chinese line, that the problem of the territory's status is something to be discussed at a convenient moment. A reiteration of this should cause us no

problems in the Hong Kong context (though it would still be better if they said nothing)

2. Southern European Department tell me that the record of the Secretary of State's discussions with Dr Sa Lachado has yet to be approved by the Secretary of State. I cannot there- fore check whether what the Foreign minister said was the same as what the Folitical Lirector told our Ambassador in Lisbon. But if it was, it looks as if the Fortuguese had misunderstood what the Chinese were getting at. I attach a draft to Lord Moran, putting the record straight.

5 July 1978

CONFIDENTIAL

W.E. Chantill

WE Quantrill

Hong Kong and General Dept

AKK OvOLL

INDE

- !!!! 078

PA

No