greyhound betting can be determined, it is vital to know the total commission to be deducted for all the interested parties.
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In this connection, it is noted that compared with pre-1977 days when the total annual turnover was thought to be in the region of $500-$600 million, the Police up-to-date estimate, an annual turnover in the region of $25 million (paragraph 8), represents an improvement. It is also the Police view that provided that pressure is maintained on the illegal bookmakers, the size of the problem is unlikely to increase in the foreseeable future. In view of this, as well as the protracted negotiations involved in reaching agreements between the Macao Government and the Hong Kong Government and between the Royal Hong Kong Jockey Club and the Macao Canidrome, and the current state of public opinion, which is unlikely to favour any further move to liberalise the gambling policy (paragraph 14), it is felt that there is no immediate pressing need to legalise off-course betting on Macao greyhound racing. However, as it is generally desirable to provide alternative legal outlets for existing forms of illegal gambling, it is intended that the position should be kept under constant review and that an approach be made to the Macao Government to sound out its reaction on legalisation of greyhound betting in Hong Kong should the problems arising from illegal operations increase in the future.
Development of Horse Trotting in Macao
47TM***
In considering memorandum XCC(76)6 on 10th February 1976, the Council advised and the Governor ordered:
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that the Macao Government should be advised that the Hong Kong Government cannot at this stage give an undertaking to introduce legisla- tion to permit the placing of bets in Hong Kong on racing in Macao and that, at this stage, the Hong Kong Government should ignore the Macao Government's enquiry whether it had any objection to the placing of bets in Macao on horse racing in Hong Kong".
In view of the above message conveyed to the Macao Government and the cold response given by the Royal Hong Kong Jockey Club, the Hong Kong-Macao consortium, which was suspected to have pressurised the Macao Government to approach the Hong Kong Government for reciprocal arrangements for off-course betting on horse racing in both territories, has now abandoned its plans to establish horse racing in Macao. However, another Hong Kong-
CONFIDENTIAL