TNAG-2910-FCO40-4185-International-support-from-Asia-regarding-the-future-of-Hong-1993 — Page 75

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21 JAN 1993

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MDLIAN 8446

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OF 20083OZ JANUARY 93

INFO PRIORITY PEKING, LISBON

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Action Taken

MACAO/HONG KONG.

SUMMARY

1. IN A RELAXED TWO HOUR CONVERSATION THE GOVERNOR OF MACAO OUTLINES HIS APPROACH TO CHINA, WHICH IS BASICALLY SIMILAR TO THAT OF MR. PATTEN AND WHICH HE REGARDS AS ACHIEVING ITS AIMS. EXPLANATION OF THE TRADE STRATEGY. THE GOVERNOR IS SUPPORTIVE.

DETAIL

2.

THE GOVERNOR INVITED ME TO CALL DURING A WEEKEND VISIT TO MACAO. THE MEETING SCHEDULED FOR 30-45 MINUTES RAN ON FOR TWO HOURS. THE GOVERNOR SHOWED A KEEN INTEREST IN THE LATEST DEVELOPMENTS IN HONG KONG IN RELATION TO OUR EVOLVING TRADE STRATEGY TOWARDS CHINA. THE GOVERNOR AND MR.PATTEN HAVE CLEARLY ESTABLISHED A RELATIONSHIP OF CONFIDENCE. I KNOW FROM OUR VARIOUS DISCUSSIONS OVER THE PAST EIGHT MONTHS THAT GENERAL VIEIRA FEELS ISOLATED IN MACAO AND HE HAS BEEN GREATLY ENCOURAGED BY THE CLOSER RELATIONSHIP WITH BRITAIN AND THE SIMILARITIES BETWEEN MR.PATTEN'S APPROACH AND THAT WHICH HE HAS ADOPTED. HE BELIEVES HE IS MAKING PROGRESS WITH HIS CHINESE INTERLOCUTORS. HIS AIRPORT IS PROGRESSING WELL AND THERE IS ONLY ONE SERIOUS ITEM OF

CONTENTION.

3. HE DISPLAYED A KEEN INTEREST IN THE EVOLVING TRADE STRATEGY AND OBSERVED THAT ALL THE EVIDENCE AT HIS DISPOSAL CONFIRMED THE APPROPRIATENESS OF THIS APPROACH. WHEN WE GOT TO TALKING ABOUT CHINA'S PLANS FOR THE DELTA REGION, IT SEEMED CLEAR THAT THE ROLE OF MACAO HAD BEEN DIFFERENT.

4.

THE CHINESE HAD NO PROBLEMS ABOUT GAMBLING IN MACAO (WHICH REPRESENTS 70 PERCENT OF LOCAL REVENUES) PROVIDED IT WAS RUN TOTALLY BY MACAO AUTHORITIES AND ID NOT SPREAD ACROSS THE BOARD. THE CASINO OPENING IN NEIGHBOURING ZHUHAI HAD BEEN IMMEDIATELY CLOSED DOWN BY PEKING.

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