TNAG-2497-FCO40-3633-Relations-between-Hong-Kong-and-Macao-(Macau)-1992 — Page 17

020/3

CONFIDENTIAL

Mr Paul

ма

"Pauly FED

ميرة

abraliz

From: A C Galsworthy

Date:

The Bunke

M

CC :

16 December 1992

Mr Stephen Day,

39

British CG to Macao Mr W G Ehrman, PA Mr P F Ricketts,

HKD, FCO

MACAO JLG

1.

Ambassador Portela, the number 2 in the Portugese JLG, came to see me yesterday. At his request I gave him a fairly full briefing on the current situation between ourselves and the Chinese.

2.

2

He told me that the last Sino-Portugese JLG meeting had been reasonably successful, and the Chinese fairly cooperative. They had just solved the difficult issue of the development of the reclamation in front of the Praja Grande. He gave himself all the credit for this solution, though he said that he thought the whole scheme, which would ruin the traditional Portugese style appearance in Macao, was a piece of Philistinism. The problem had been that the Chinese were pressing for the land which was to be conceded to the Portugese companies to be sold at a greater price. The Macao government could not do this because of undertakings given to the companies (he looked very shifty at this point), but a compromise had been reached with agreement that some other areas of land would be put up for auction.

3.

The major difficulty regarding the airport remained the question of loans. Some loans were to be paid off before 1999: the Portugese were simply informing the Chinese about these. There was however one major loan which was expected to be outstanding until 2003, and which would require Macao government guarantees. The Chinese were being very difficult about this, and no agreement had yet been reached. Meanwhile the Macao government had been increasing their shareholdings in the airport development company, which would reach 51%. The Chinese had not yet been told about this, and the deals would not be complete until March. He was nervous about the likely Chinese reaction.

4.

The Chinese were also being highly uncooperative on the subject of Air Service Agreements. In fact they were still declining to talk to the Portugese about them.

A C Galsworthy

CONFIDENTIAL