TNAG-1148-FCO40-1428-Effect-on-Hong-Kong-of-the-Portuguese-and-Spanish-accession--1982 — Page 29

CONT IDENTIAL

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Mr. Hotne

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BRITISH EMBASSY,

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6 July 1982

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PORTUGAL, MACAO AND THE EEC

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Thank you for copying to us your minute and the minutes of the various departments on this problem.

attached

2. I do not yet know what status Portugal is likely to seek for Macao, but it is bound to be the most favourable with which the think they can get away. I note from your exchange of minutes that there is little give in our position. I agree with David Wilson that it would be worth speaking to the Portuguese Ministry of Foreign Affairs, to the Secretary of State for European Integration and possibly to the Governor of Macao when he is next in Lisbon, making our position clear so that the Portuguese do not start out with unrealistic expectations. The subject might be raised in the course of the next round of official talks with the Portuguese about accession (FCO Telno 148

July to Lisbon.) It would also be sensible to talk to the J se accession negotiators in Brussels, and to the Macao

ment directly to make sure that the message gets home. ve in face already made the point about not stealing a march ong Kong to Dr Antonio Marta, the leading civil servant in the Portuguese team.

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3. ine Portuguese will be unhappy about this, coming as it do on to of what is seen as our unyielding position on textiles. The may begin to look quizzically at our promises to smooth the path towards entry to the European Community - repeated h la: eek by Mr Pym. It would naturally be helpful if we couli tai more flexible attitude on some other aspect of the negot

Is there nothing we can do about textiles on the lines supted in my letter of 11 May to Mary Lackey? (I enclose a

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Logether with her reply and my response.) As seen from here the mission's present tactic of linking pre and post accessi nexations can only be to our disadvantage, given that we dly have a post-accession agreement with the Commission. I NR wou have thought it was therefore worth giving a little on the

procession negotiations.

CC: or CLIFT HEGD

A Wilson ED

Elliott FED

Yours ever