CONFIDENTIAL
(c)
4.
solution must be adopted. We are not sure what will
eventually emerge, but both sides evidently attach importance to their respective positions.
Lesser difficulties have arisen over the lack of suitable local (i.e. ethnic Chinese) administrators in Macau; the position of the Catholic Church; the role of the Portuguese language; and the continuation of Portuguese cultural influence. These issues reflect the Portuguese wish to leave
"with dignity".
The Chinese
The
Despite these problems, agreement seems close. hope to conclude negotiations in time for ratification by the National People's Congress due to take place in April. Portuguese are in less of a hurry and it may be that the timetable
But the attached telegram the Chinese want will not prove possible.
just received from Lisbon suggests that the two sides may be preparing to sign an agreement as soon as mid-April.
THE HONG KONG ANGLE
5.
Arrangements for Macau will be scrutinised closely in Hong Kong. Any belief that Macau is getting a better deal than Hong Kong would be bad for confidence in Hong Kong. We have emphasised to the Chinese the need to take account of confidence in Hong Kong in shaping a Macau agreement and they seem to have taken the point well. The Portuguese are not likely to be concerned about the Hong But it would still be worth Kong angle in the way the Chinese are. giving them an indication of our particular interest in this
respect.
6.
The nationality issue may be particularly delicate for us in terms of Macau/Hong Kong comparisons. Under Portuguese nationality law Macanese holders of Portuguese passports are in a more
access to the favourable position than BDTCs under UK law as far as metropolitan country is concerned (and access to the Community as nationals of member states for EC purposes). signalled our concern, in an EC context, at the possibility of an
CONFIDENTIAL
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