CONFIDENTIAL
SECRETARY OF STATE'S VISIT TO PORTUGAL,
24 26 JUNE: MACAO
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ESSENTIAL FACTS
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General Background
1.
Macao founded as Portuguese settlement in 1557. Treaty of
Peking in 1887 confirmed perpetual Portuguese occupation of
Macao, though China later denounced Treaty and regards Macao
as Chinese territory occupied by Portugal. Political upheaval
in Portugal in mid-1970s led to changes in Macao's administration.
From being regarded as overseas Portuguese province, redefined
in 1976 as collective entity with internal legislative sovereignty
"which, with the exception of principles laid down in the
Portuguese Constitution, would enjoy administrative, economic, financial and legislative autonomy."
2.
diplomatic
Described in present Constitution as "territory under
Portuguese administration". But statement announcing establish-
ment of development relations between China and Portugal in 1979
did not mention Macao. Unconfirmed reports of private under-
standing between Portugal and China over Macao's status and future.
Official Chinese,,statements link Macao with Hong Kong as historical problem to be settled when conditions are ripe.
Present status vis-à-vis Portugal and China
3.Mr Atkins asked Dr Gonçalvez Pereira about Macao during talks
in Lisbon in November 1981. Dr Gonçalvez Pereira said he thought China planned to leave Macao as it was. Portugal maintained correct diplomatic relations with China but ensured that these
were not conducted through Macao. Not specific about Macao's
status. This conversation provides useful lead-in.
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