CONFIDENTIAL
DSR 11C
with China but ensured that these were not conducted
through Macao. But he was-ot specific about Macao's
status. This conversation provides useful lead-in.
Possible EC Status
4.
weal
In negotiations for Portugal's accession to the EC
Portugal will have to make known what status if any they
want for Macao. Have not yet revealed their thinking.
Chinese will have a view.
5.
Hong Kong has no special status vis à vis the EC.
Treated as a normal third country. They have already made
clear to Ministers that they would object most strongly
to advantages for Macao which did not apply to Hong Kong.
These could affect eg; student fees, trade (preferential
treatment of commodities produced in the EC), right of
abode and work.
6.
As the likelihood of discussions with China over
draws Hong Kong press nearer we need to be more careful than
ever to avoid upsetting Hong Kong. Given our uncertainty
+
over Macao's relationship with Portugal and China,difficult
to assess Chinas attitude.
ese
CONFIDENTIAL
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