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DSR 11C
1
between the Chinese and the Portuguese Governments when the
establishment of diplomatic relations was negotiated in
1978 and 1979. By this, Lisbon is believed to have conceded
Chinese ultimate sovereignty over Macao. But attempts to
obtain confirmation of this have so far been unsuccessful.
Comparisons with Macao are further discussed at Annex
16. It would be theoretically possible for HMG unilaterally
to amend the Order in Council of 1898 to as to extend beyond
1997 the period of British administration over the New
Territories. But it would be unwise to act without Chinese
agreement, as an adverse reaction by China would immediately
undo all the political benefit to confidence.. In order to
preserve confidence we would therefore need at least a
statement by Peking (public or confidential depending on the
nature of our own undertaking on sovereignty) that the
status quo (i.e. a separate British administration) would
continue. At a point nearer to 1997 we may need to find
some way to accommodate an exchange of statements on these
lines.
17.
An alternature
A more promising possibility, however, might be to
negotiate an exchange of statements in which the Chinese
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