TNAG-1459-FCO40-1983-Relations-between-Hong-Kong-and-Macau-1986 — Page 115

Hofe

NOTE FOR THE RECORD

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1. I gave lunch today to Antonio Martins da Cruz, Diplomatic Adviser to the Prime Minister.

The following points of

interest arose.

i. Possible visit by Cavaco to Britain in May

ii.

I have separately reported on this.

Call on Cavaco by Chairman of RTZ

Martins da Cruz confirmed that this would take place, and undertook to let me have an exact time as soon as possible.

iii. Macau

Martins da Cruz said that this was now a subject of considerable interest. The Portuguese were likely to set up a special team to deal with negotiations, possibly headed by a retired Ambassador with plenty of experience of tough negotiations (he mentioned the name of Magalhães, who negotiated the latest Lajes agreement with the US). Emphasising that he was talking in confidence, Martins da Cruz said that the Prime Minister might well be asking whether the British could agree to see a small team of Portuguese to exchange information about Chinese negotiating tactics and methods.

I said that I was sure we would try to be helpful but recalled that Dr Wilson had given a great deal of detail to João Salgueiro. Martins da Cruz recognised this, but also noted that Salgueiro had lost responsibility for Far Eastern matters in the recent re-organisation of the MFA. And in any case, there was a tendency for the Prime Minister to want to have a special team for this rather than leave it completely to the MFA. He will get in touch with us if he wishes to pursue the idea.

iv. Alvaro Barreto

We talked about the way in which Cavaco had managed to dominate the PSD.

There had been no sign of trouble from the usual faction leaders, such as Capucho or Rebelo de Sousa. But Martins da Cruz said that one person who had increased his power within the Party, although not really a Party man, was Alvaro Barreto.

The latter had been able to place close friends in various key posts. Martins da Cruz thought that the relationship between Cavaco and Barreto in the longer run was likely to be difficult; for the present, both recognised clearly the other's abilities.

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iv.