CONFIDENTIAL
:
MACAU
1. The Portuguese received the permission of the Chinese authorities in Canton to establish a settlement in Macau in 1557. The original arrangements for their presence are lost in histori- cal obscurity. For many years the Portuguese paid a form of rent to local Chinese authorities, and a Chinese mandarin was stationed in the territory with varying degrees of actual and claimed control over the local inhabitants. In 1849 the Governor refused to continue paying the rent and turned out the Chinese customs.
2. The status of Macau was not clarified legally until 1887 when, by treaty, the Chinese confirmed the "perpetual occupation and government of Macau and its dependencies by Portugal as any other Portuguese possession". Portuguese sovereignty was to some extent limited by another clause which stipulated that the territory of Macau should not be alienated by Portugal without the agreement of China. This clause was included to meet British fears about the possibility that Portugal might face pressure to cede Macau to a stronger power, which would present a challenge to Britain's interests in Hong Kong.
3. The Government of the People's Republic of China (PRC) regards Macau as Chinese territory, occupied by Portugal.
Offi- cial PRC statements describe Macau, like Hong Kong, as a problem left over by history, to be resolved "when conditions are ripe".
4.
The "Statute of the territory of Macau" promulgated by the President of Portugal in February 1976 provides that Macau enjoys "administrative, economic, financial and legislative autonomy" The Statute prescribes the powers of the Governor and Legislative Assembly, as well as providing for an Advisory Council and defin- ing various judicial and administrative procedures. The Statute was confirmed by Article 306 of the Portuguese Constitution promul- gated in April 1976.
5. The Legislative Assembly consists of 17 members, of whom 5 are appointed by the Governor, 6 directly elected and 6 elected indirectly as representatives of "moral, cultural, welfare and economic" interests. The electorate, which numbered 3648 persons in 1976, includes some Chinese and foreign residents of Macau as well as Portuguese citizens.
6.
Portuguese troops were withdrawn in 1975-76, being replaced by a locally recruited security force.
7. There was clearly some discussion of Macau in the course of the negotiations which led to the establishment of Sino-Portuguese diplomatic relations in February 1979. According to one account there was a confidential understanding that Macau is Chinese territory to be handed back at an undefined future date.
Chinese
8. There is no official Chinese representative in Macau. influence is made felt either through unofficial intermediaries, such as the millionaire He Xian (Ho Yin), or through the leading
CONFIDENTIAL
/Chinese
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