TNAG-1148-FCO40-1428-Effect-on-Hong-Kong-of-the-Portuguese-and-Spanish-accession--1982 — Page 33

Mr Crowe ECD (E)

13

CONFIDENTIAL

Mr. McQue

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MACAO AND THE EEC

1.

Thank you for sending me a copy of your minute to Mark Elliott about Macao and Portuguese entry to the EC.

2.

I do not think there is any SED point on bilateral relations which is strong enough to outweigh the disadvantages for Hong Kong of Macao getting a different status from Hong Kong when Portugal joins the EC. Wearing my old Hong Kong hat, it would seem to be disastrous that Macao should, in any way, get better treatment.

3.

4.

I have only two other comments on your minute:-

(a)

(b)

I doubt if we could base much of an argument on Macao's ''important industrial economy'' (para 5). The economic strength of Macao is pretty minimal;

and

some play might be made with the equivocal status of Macao in relation to Portugal. I believe the constitution refers to it as a territory ''administered by Portugal' without any claim to sovereignty. This might be a useful additional argument for not associating it with the EC in the same way as DOMs or TOMS.

Subject to the views of the Embassy in Lisbon, I would be inclined to make it clear to the Portuguese early on that it would be politically unacceptable to us (and damaging to the stability of Hong Kong as well as, by extension, Macao) for Macao to be treated differently from Hong Kong when Portugal joins the EC.

14 June 1982

cc:

Mr Elliot, FED

D C Wilson

Southern European Department

Mr Clift, HKGD

JWR Shakespeare Esq MVO, LISBON

CONFIDENTIAL