CONFIDENTIAL
DSR 11C
politically impossible for the UK to agree to Macau receiving
better treatment than that accorded to Hong Kong. It is not
yet clear what status the Portuguese will request for Macau.
However, the Commission have pointed out that in the
negotiations so far, Macau has only been discussed under the
"external relations" heading and not under "customs union".
This implies that Portugal may already have accepted that
Macau will not be part of the Community after Portuguese
accession. The Commission's view is that Macau should have
the same status as Hong Kong.
Economy
18.
Macau's economic growth over the last five years has been ·
impressive. Imports have trebled although remain less than
MA
0.5% of Hong Kong's total imports. Improved relations with
China after 1979 further boosted the economy. A start has been
made to break away from dependence on gambling which had chara-
cterised the economy since the early '60s. Government receipts
from gambling now represent only about 16% of budget revenue
compared with 30% in the past.
the mainstay of the economy.
{
Textiles and tourism are now
with China
Tourism/grew after the opening
of the Portas do Cerca gate into Zhuhai Province, although
3.7 million of the 4.7 million tourists in 1981 came through
Hong Kong. Hotel accommodation is to be increased. The Macau
Government wishes to develop Macau as an international confer-
ence centre, and to preserve and redevelop historic buildings
to encourage longer stay tourism. Attempts are being made to
secure a Hong Kong Macau helicopter service (over Chinese
airspace).
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CONFIDENTIAL
/19.