TNAG-1145-FCO40-1425-Relations-between-Hong-Kong-and-Macau-1982 — Page 78

CONFIDENTIAL

DSR 11C

Campbell, an official of the Chinese customs, signing on

behalf of China.

3. The Government of the People's Republic of China (PRC)

regards the 19th century treaties concluded with Western

powers, amongst them the 1887 agreements with Portugal, as

unequal' and has announced that it reserves the right to

abrogate or renegotiate them when it wishes. It regards

Macau as Chinese territory, occupied by Portugal. Official

PRC statements describe Macau, like Hong Kong, as a problem

left over by history, to be resolved "when conditions are

ripe". However China has shown no interest in taking back

Macau and is clearly satisfied with the status quo. It earns

an increasing if still small amount of foreign currency

from the territory, and is concerned that change in Macau

would damage confidence in Hong Kong. The Chinese Foreign

Minister, Huang Hua, is reported to have said to the

Portuguese President during a visit to Lisbon in May this

year that China would maintain the status quo in Macau, although

in the future it could study, together with the population

of Macau and the Portuguese authorities, other solutions for

the territory which would not affect the standard of living

of the population, nor the interests of foreign investors.

?

Because there is no "lease" for Macau, land tenure is

unaffected by any terminal date. Some land, particularly

that belonging to the Church, is held freehold. Land newly

formed by the Government is now generally leased for a 25-

year period, renewable for 10 years at a time.

CONFIDENTIAL

15.