TNAG-0933-FCO40-1152-Relations-between-Hong-Kong-and-Macau-1980 — Page 82

population of Macao at 400,000 (although, he said, official statistics still spoke of 300,000). There were 3,300 Vietnamese

efugees and around 50 000 legal immigrants from mainland China.

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General Egidio said that he had been disappointed. low level of investment in Macao by Portuguese investors. blamed this on the distance from Portugal and lack of knowledge about Macao. There were signs, however, that things were improving. The Banco Nacional Ultramarino was coordinating a campaign in Portugal to attract investors. He was anxious to see industry in Macao diversifying away from textiles. They had had success recently with electronics, toys and artificial flowers. He hoped to be able to encourage more enterprises to establish factories in the islands of Taipa and Coloane. A major complex was being developed in Taipa to house 30,000 people. The other hope for Macao was tourism, based largely on gaming. The Sheraton Hotel chain, a group of businessmen in Singapore and the administration of the Altis Hotel in Portugal had all expressed interest in building new hotels in Macao.

16.

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Asked about plans to build an international airport in Macao,

said that a consortium of four major investors was interested in building the airport. The idea had been in existence for some time but there was a problem in that aircraft using the airport would have to overfly Chinese territory. He was confident that permission would be granted but the main problem was the requirement to guarantee sufficient traffic to justify the airport. It would be for the Chinese authorities to assure the investors that such traffic would be guaranteed. He had recently spoken to the Chinese ambassador in Lisbon and put the problem to him in clear terma. He expected a reply at any moment. The plan was, he Baid to build the airport on Coloane using land reclaimed from the

The airport would help to reduce Macao's dependence on Hong Kong as would plans for the construction of a new ocean terminal.

77. On relations with China, General Egidio said that the establishment of diplomatic relations between Portugal and China in 1979 had been a major development which would assure the stability and security of Macao. China was clearly interested in the development of Macao. Macao was still greatly dependent on Portugal although it enjoyed considerable autonomy. On the other hand he thought that Macao had an important role to play in strengthening relations between Portugal and China and could constitute a useful springboard into China for Portuguese exporters.

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8. As the new Government in Lisbon is only just being sworn in today it is too early to tell how much effort they intend to make on Macao but I have heard some encouraging noises about investment. Their attitude to the proposed new airport will be interesting since on the whole they seem to be realists and would be unlikely to embark on such a project unless it promised to be profitable.

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