TNAG-1145-FCO40-1425-Relations-between-Hong-Kong-and-Macau-1982 — Page 84

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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