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3.
While we understood their national concern on sovereignty, we still had some way to go to persuade China of the importance of maintaining continuity of administration and a climate of confidence. China wanted an end to the Treaty arrangements, but also a continuation of the free enterprise economy of the territory. China had put forward a ten-point plan which defined
special arrangements for Hong Kong. Our concern was whether the
Chinese understood actually what was needed to maintain business confidence beyond the definitions set out in their plan.
4.
Dr Gama asked how private businessmen were reacting. Sir G Howe thought it was difficult to assess the largely intangible
matter of business confidence.
5. Mr Whitney said that although there was superficially much in common between Hong Kong and Macao, there was a key difference between the two. There was much public concern in Britain over the future of Hong Kong, while it was his impression that in Portugal, Macao was less of a political issue. Dr Gama agreed.
The sovereignty of Macao had already been decided. The Portuguese administered Macao, but in close contact with China. Dr Gama
commented that some Hong Kong businessmen had shown interest in wanting to settle in Macao and take up Portuguese citizenship. He asked whether Hong Kong residents had British citizenship. Mr Whitney explained that they were British Dependent Territory citizens, and that few had the right of abode in Britain. Sir G Howe said that there were some practical differences, but Hong Kong citizens held British passports.
6.
Dr Gama said that the Chinese Foreign Minister had asked to meet him next week in New York, during the UN General Assembly. He would report on this conversation to Mr Byatt. Sir G Howe
thanked Dr Gama for this offer and asked him not to disclose details of the conversation they had just had.
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