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special treatment for Macau would pose major difficulties for the Community, notably over free movement of labour and textiles. Moreover the UK could not 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. On the one hand, there has been a suggestion that they may seek overseas territory status. 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 they remain less than 0.5 per cent of Hong Kong's total imports. From 1973 to 1980 inclusive, Macau accumulated a visible trade balance of 292 million patacas (about £ sterling 24 million) although, after 4 successive annual surpluses, 1980 showed a deficit of 38 million patacas, with imports of 2780 million patacas and exports of 2742 million patacas. Macau's main trading partners are the US, UK and Hong Kong. It has an important export trade with West Germany and France, and import trade with China and Japan. Improved relations with China after 1979 further boosted the economy. A start bas been made to break away from dependence on gambling which had characterised the economy since the early '60s. Government receipts from gambling now represent only about 16 per cent of budget revenue compared with 30 per cent in the past. Textiles and tourism are now the mainstay of the economy, the former accounting for over 80 per cent of exports. Tourism with China 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 conference centre, and to preserve and redevelop historic buildings to encourage longer stay tourism. A Hong Kong-Macau helicopter service (over Chinese airspace) is planned to supplement the existing conventional ferry service and two separate hydrofoil services. As well as the new airport, there are proposals for the building of a dockyard and a deep sea port.
19. As in Hong Kong, lack of industrial land hampers economic development. Following the construction of a bridge and causeway linking them with the peninsula, the two islands, Taipa and Coloane are now being opened up for development, and large-scale land reclamation projects for over 15 sq kms of land are under study. Because there is no "lease" for Macau, land tenure is unaffected by any terminal date. Some land, particularly that belonging to the Church, is held freehold. Land newly formed by the Government is now generally leased for a 25-year period, renewable for 10 years at a time.
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