TNAG-1145-FCO40-1425-Relations-between-Hong-Kong-and-Macau-1982 — Page 85

CONFIDENTIAL

DSR 11C

development.

19. As in Hong Kong, lack of industrial land hampers economic

The two islands, Taipa and Coloane are now being

opened up for development, and large-scale land reclamation

projects are under study. Lisbon has a scheme for turning

the territory into a major regional distribution centre for

Portuguese products.

20. The expansion of credit increased by 70% in 1981.

Between 1977 and 1981 the Government accumulated a surplus

revenue of 500 million patacas (£sterling

) and

public investment expenditure increased from 27 million

patacas in 1977 to 125 million in 1981. Macau's banking

system is soon to be restructed to allow more foreign financial

institutions to open in the territory. A number of interna-

tional banks are said to want

to set up in Macau.

CONFIDENTIAL