1 - The Council of State met today at Belém Palace, chaired by His Excellency the President of the Republic, and was heard on Macao?s transition process.

2 - The Governor of Macao informed the Council of State about the situation in the Territory, Macao?s transition process and the priorities of the respective Administration.

3 - The Council of State emphasised how important it was for assuring Macao?s future after the transfer of sovereignty, for the Territory?s transition to take place safely and in strict compliance with what was agreed in the Portuguese-Chinese Joint Declaration of 1987, particularly with respect to the political, economic and judicial system and to the cultural identity, rights, freedoms and guarantees of its inhabitants and their respective political and civil status

4 - The Council was very pleased by the positive development of the Macao?s transition process and considered that the Portuguese Administration has created conditions which permit Portugal to continue to completely fulfil its obligations in the Territory until 1999.

5 - The Council of State also expressed its satisfaction at the closeness of the relationship existing between Portugal and the People?s Republic of China at the present time and by the positive implications of the same for assuring Macao?s successful transition.

6- The Council of State stressed once again the importance of maintaining institutional co-operation between the different sovereign bodies, the Governor and the Administration of Macao.