TNAG-1459-FCO40-1983-Relations-between-Hong-Kong-and-Macau-1986 — Page 82

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feelers in that direction.

This was a sign of the Government's insecurity. A new offensive against UNITA had been expected during May but now seemed unlikely to materialise. The most likely situation was one of continuing stale-mate. The Prime Minister referred to the growing Soviet role in Angola, particularly in the supply of arms. Senhor Cavaco Silva agreed that this was a matter of

concern.

Macao

In response to the Prime Minister's question, Senhor Cavaco Silva said that the Portuguese Government had just appointed a chief negotiator and discussions with the Chinese were likely to open in June or July in Peking.

East Timor

Senhor Cavaco Silva said that the elections due in 1987 in Indonesia would offer an opportunity to put a number of questions to the people of East Timor about their future. His Government were keen to reach a settlement to the problem. It was also to Indonesia's advantage to see a solution which would remove East Timor from the United Nations' list of dependent territories.

ΝΑΤΟ

An

Senhor Cavaco Silva raised the issue of frigates to enable Portugal to carry out various NATO tasks. agreement for the construction of three frigates in the Federal Republic of Germany would be signed very shortly. A number of countries were contributing to the cost and some years ago the United Kingdom had offered some £5 m. for helicopters. This sum was now inadequate and he hoped very much that the United Kingdom could increase its offer. The Prime Minister undertook to look into this.

Libya

Senhor Cavaco Silva said that his Government understood the reasons for the United States' action against Libya and was ready to impose restrictions on Libyan offices. Half of the members of the Libyan People's Bureau in Lisbon had been expelled. He was particularly concerned at the risk of friction between Europe and the United States on this issue. He strongly welcomed the declaration on terrorism issued by the Tokyo Economic Summit.

Tokyo Economic Summit

Senhor Cavaco Silva enquired whether the Prime Minister was more optimistic about trends in the world economy as a result of the tokyo Economic Summit. He hoped that the Summit would open up a phase of expansion which would help countries such as Portugal with large external deficits. The Prime Minister gave a brief account of the economic discussions at the Summit.

CONFIDENTIAL