Just after Jiang's arrival on the latest stage of a six-nation tour, foreign ministers from the two countries worked out a deal to let an advanced squad of People's Liberation Army troops into the tiny gambling enclave ahead of its December 20 return to Chinese sovereignty. Later President Jorge Sampaio agreed to lead the Portuguese delegation at the ceremonies, ending a veiled threat to boycott the return of Macau after some 443 years of Portuguese rule.

Portugal previously opposed China's troop plan. But it conceded that a ``technical'' unit could be sent to Macau to prepare the Chinese military presence, said Foreign Minister Jaime Gama after talks with Chinese counterpart Tang Jiaxuan. Tang told reporters, ``For China, it is natural to want a military force for Macau. It is like what happened in HongKong.''

Britain allowed China to send an advance PLA force into the territory ahead of the July 1997 handover. China wanted to send up to 1,000 troops to cope with gang-related bloodshed in Macau, while Portugal insisted there was no provision for soldiers in their 1987 handover agreement. Sampaio said he would finally go to Macau following talks with Jiang, who arrived from France for the 30-hour visit. ``The transfer ceremony must signify the success of the transition process and so it will be the President of the republic who will lead the Portuguese delegation at the ceremony,'' he told reporters.

Sampaio had not officially accepted Beijing's handover invitation in protest at China's decision to invite Indonesia, Portuguese diplomatic sources said. Portugal and Indonesia are at odds over East Timor, the former Portuguese colony where pro-Indonesian militias unleashed a killing spree last month after a referendum massively voted against Indonesian rule.

But Sampaio insisted the transition was goingwell. ``All the conditions are ready for it to be a success,'' he said. The Chinese leader said the presidents' 90-minute meeting had been ``useful, friendly and frank''. But he added that more intense contacts were needed to ensure ``a stable transition and a peaceful transfer of power.''

They still have to end disputes over whether the death penalty will be allowed in the enclave and who else will be invited to the handover.