TNAG-0752-FCO40-956-Future-of-Hong-Kong-1979 — Page 171

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Mr Murray

Mr Cortazzi

PS/Lord Gorowy-Roberts

必

HONG KONG AND MACAO

1.

lag A

56

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Secretan

Hkkardi

RELAND

INDEX

1978 PA ofte

1 1 JUL 1978

PA

No ah

g State

HM Ambassador in Lisbon has reported that the Political Director at the Portuguese Foreign Ministry has asked for documentation on the legal status of Hong Kong (Lisbon telegram no. 213). The request is in connection with the forthcoming negotiations on the establish- ment of diplomatic relations between Portugal and China, during which the Portuguese expect the status of Macao to be discussed.

2. We have had no indication that the Portuguese intend to offer to return Macao to China in the context of the negotiations for the establishment of diplomatic relations,

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION $(4) OF THE PUBLIC RECORDS ACT 1958

3. I am not convinced that the Chinese would necessarily accept a Portuguese offer to return Macao to China: because of the link with Hong Kong their interests very clearly lie in the maintenance of the

status quo.

But an offer to return the Colony would undoubtedly be highly embarrassing to them; it would also, if it became known, cause great nervousness in Hong Kong. If Macau were actually returned to China the repercussions in Hong Kong would, of course, be very serious, even if the Chinese took care to make it clear that their intentions towards Hong Kong remained benevolent. At the very least there would be a sharp drop in business confidence, and in foreign

investment.

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