TNAG-1373-FCO40-1819-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 108

ME 3ADO

CONFIDENTIAL

BACKGROUND

5.

the

During President Eanes' visit to China in May,

Portuguese and Chinese Governments announced that they

would begin negotiations on the question of Macau in the

near future. The start of negotiations is now likely to

be early next year, after the Portuguese Presidential

elections.

6.

have

The outcome of the negotiations could

implications for Hong Kong. It will be important that

the terms of any agreement should not be substantially

better ог worse than those of the

the Joint Declaration. The

Chinese have indicated to us their concern that the

Portuguese do not understand the sensitivity of the

subject. A particular problem lies in the lack of a strong local administration in Macau.

close touch with the Portuguese.

We are keeping

in

7.

Shortly before the conclusion

of Portugal's

EC

accession negotiations, Hong Kong asked us to try to

prevent Portuguese residents of Macau from enjoying

better rights of entry

to the EC than Hong Kong BDTCs.

with the Portuguese who made a

We

this pursued declaration to the EC explaining their policy on

issuing

that

to Macau Portuguese passports

residents, but

said

their nationality law did not allow them to distinguish

between Portuguese nationals from Macau and other Portuguese nationals. We believe that there are about 80,000 Macanese entitled to Portuguese passports. After year transitional period and unless the Portuguese Government adopt restrictive measures in the interim, Portuguese from Macau will therefore enjoy full EC access rights, unlike Hong Kong BDTCs.

a

7

8.

Our

the Portuguese received

unfavourable publicity in a September

to approaches

and Review

is sue

the HKG, fearing

of the Far

that our

Eastern Economic

CONFIDENTIAL