TNAG-1148-FCO40-1428-Effect-on-Hong-Kong-of-the-Portuguese-and-Spanish-accession--1982 — Page 34

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Mr Crowe ECD (E) (E107)

CONFIDENTIAL

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Pão 14/6

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MACAO AND THE EC

Thank you for sending me 1. Mr Elliott.

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2. I am sure that we must continue to oppose any special status for Macao. Hong Kong are very suspicious of Macao gaining a march on them. They have already made it quite clear that they would object most strongly to students from Macao being treated more favourably by the UK than Hong Kong students.

3. When Mr Atkins went to Hong Kong in January 1982 members of the Executive, Legislative and Urban Councils raised this point. Mr Atkins took a similar line to that taken by Lord Carrington in March 1981, ie 'there is no sign that the Portuguese will ask for special status for Macao but if they do we will work to ensure that Macao is treated similarly to Hong Kong'. (The line he was to take if pressed was: 'we fully take the point that any advantage for Macao would be unacceptable!')

4.

In a separate meeting at Government House on 8 January 1982 Mr Jopling, Government Chief Whip, noted that special EC status for Macao could affect Hong Kong in a number of ways, including trade (preferential treatment of commodities produced in the EC) and the right of work and abode. He said it would be unacceptable to Hong Kong if Macao were to enjoy EC status but not Hong Kong.

5.

Moreover, it cannot be in our own interest for Macao to be better placed than Hong Kong as far as exports are concerned. If it were Hong Kong manufacturers would move there in droves and restraints would have to be imposed.

6. The position has not changed. If anything, as the likelihood of serious discussions with the Chinese over the future of Hong Kond draws nearer, we need to be more careful than ever to avoid upsetting Hong Kong or doing anything that might adversely affect discussions with the Chinese.

SISE MKIZ 040/1 (333) +(337) 1482

HERZ

7. If possible it would be helpful to have an indication of Portuguese thinking on this ubject. We are already considering seeking more information on the relationship between Macao and China during the Secretary of State's visit to Portugal, 24-26 June If Dr Wilson thinks it would not cause problems we might also brief the Secretary of State to raise the Macao/EC point.

R D Clift

Hong Kong and General Department

11 June 1982

cc Mr Elliott FED

Dr Wilson SED

J W R Shakespeare Esq, LISBON

CONFIDENTIAL