TNAG-2290-FCO40-3296-Relations-between-Hong-Kong-and-Macau-1991 — Page 109

។

RESTRICTED

нисого/

59

077767

MDTTAN 8049

RESTRICTED

FM LISBON

TO TELELETTER FCO

TELELETTER NFR

OF 17120OZ JULY 91

draft to DJI

INFO TELELETTER UKREP JLG HONG KONG, BTC HONG KONG, HONG KONG INFO

TELELETTER PEKING

SAINTY

TO C J SAINTY ESQ, HKD,

FCO

letter out

(S

(52617

$2917

MACAU

I HAD

1 I CALLED ON CATARINO ON 11 JULY TO FOLLOW UP THE ACTION

TAKEN ON FCO TELNO 219 TO ATHENS ABOUT THE ANNOUNCEMENT OF AN ANGLO-CHINESE AGREEMENT ON THE AIRPORT PROJECT, AND TO ASK CATARINO ABOUT HIS RECENT VISIT TO MACAU.

2. CATARINO THANKED ME FOR SENDING HIM COPIES OF OUR RETRACT

TELEGRAMS OUTLINING THE BACKGROUND TO THE MEMORANDUM OF

UNDERSTANDING WITH THE CHINESE. HE COMMENTED THAT IN ALL THEIR DEALINGS WITH THE CHINESE OVER THE MACAU AIRPORT, THE PORTUGUESE HAD NEVER HEARD THEM QUESTION THE NECESSITY FOR TWO INTERNATIONAL AIRPORTS (THEY HAD HOWEVER RAISED THE QUESTION WHETHER IT MIGHT NOT

BE BETTER TO HAVE AN INTERNATIONAL AIRPORT AT ZUHOI RATHER THAN IN MACAU). SO FAR AS THE PORTUGUESE WERE CONCERNED, THE HONG KONG AND MACAU AIRPORTS WERE NOT IN COMPETITION. THE AIM OF THE MACAU AIRPORT WAS TO MAKE THE TERRITORY LESS DEPENDENT ON HONG KONG AIR SERVICES, RATHER THAN TO COMPETE FOR CUSTOM. IN ANY EVENT CHINESE-IMPOSED PROBLEMS OVER THE BUILDING OF THE AIRPORT DUE TO PRESSURE FROM INTERESTED SOUTHERN CHINESE AUTHORITIES-SEEMED TO HAVE BEEN SOLVED. PROGRESS HAD INSTEAD SLOWED BECAUSE OF DEVELOPMENTS ON THE PORTUGUESE SIDE RELATED TO THE ARRIVAL OF THE

NEW GOVERNOR. HE WAS STILL IN THE PROCESS OF ASSESSING THE MATTER

AND WAS LOOKING CAREFULLY AT THE FINANCIAL IMPLICATIONS FOR THE

MACAU GOVERNMENT. HE WAS DETERMINED THAT THE MACAU AUTHORITIES WOULD NOT GO BEYOND GUARANTEEING ONE THIRD OF THE CAPITAL FOR THE PROJECT. THE REST WOULD HAVE TO BE FOUND FROM PRIVATE FINANCING. THIS MIGHT NOT BE EASY.

PROBABLY

3. IF THE CHINESE SEEMED NOW TO HAVE ACCEPTED THE BUILDING OF THE MACAU AIRPORT, THEY WERE STILL SENSITIVE ABOUT THE NEGOTIATING OF AIR TRAFFIC AGREEMENTS. IN THE MARGINS OF THE APRIL JLG THE

PORTUGUESE HAD TOLD THE CHINESE THAT THEY INTENDED TO BEGIN NEGOTIATIONS WITH THE US. THE CHINESE HAD NOT COMMENTED, BUT ON THE

1

PAGE

RESTRICTED

#