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representatives, or sound them out indirectly, on important issues. China's ability to influence events in Macau remains great. There is no official Chinese representative in Macau, but contact with Peking is maintained through intermediaries such as the millionaire He Xian (Ho Yin), who is a deputy (representing Guangdong Province) to the Chinese National People's Congress; and through the leading Chinese Communist Party member in Macau, Ke Zhengping, whose overt role is Manager of the Nam Kwong Trading Corporation.

13. In 1980, the Governor, General Melo Egidio, went to China, the first official visit by a Governor of Macau for some considerable time. He was received by Deng Xiaoping. The Governor of Guangdong Province, Xi Zhongxun, visited Macau in June 1980. And in 1981, the present Governor, Rear Admiral Almeida e Costa, visited Canton and Zhuhai, the special economic zone China is developing adjacent to Macau. As in Hong Kong, China is interested in investing in industries in Macau and in the development of Zhuhai. Macau's plans to build an international airport are reported to have won Chinese approval, and a feasibility study is in progress.

The airport is to be on land not yet reclaimed. There is also said to be an agreement for China to supply electricity for 22 years from 1982, in return for an initial Portuguese payment and Portuguese technical aid to improve Guangdong's power system. China is building a highway linking Canton with Shenzhen and Zhuhai, at a cost of about £250 million, to be open to traffic in 1985.

14.

Illegal immigration into Macau from China has been a problem. However, there are signs that it is being brought under control through the enactment in July 1982 of legislation (similar to that in Hong Kong) which prohibits the offering of employment to illegal immigrants from China.

Macau's relations with Hong Kong

15. Hong Kong interests have a large stake in the Macau economy and dominate in such areas as transport between Hong Kong and Macau, and the casinos. Much of the money for proposed development projects can be expected to come from Hong Kong.

Since

16. Since 1980, it has been the practice of the Macau authorities to redirect boats of refugees from Vietnam to Hong Kong. mid-1981 this practice has become general, despite official Portuguese representations to the effect that this is done only to help those who have expressed a wish to continue their journey to Hong Kong. While this is sometimes true, there are well-documented cases where refugees have been towed out to sea despite their wish to find asylum in Macau itself. About one boat in four arriving in Hong Kong is believed to have previously called at Macau.

Macau/EC

17. The relationship between Macau and the EC after Portuguese accession remains to be decided in the negotiations between Portugal and the Community. It is clear that any request by Portugal for

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