TNAG-1627-FCO40-2241-Relations-between-Hong-Kong-and-Macau-1987 — Page 21

CODE 18-77

-2-

Reference...

If

Banking: The IEM acting as the Central Bank supervises the financial system. Retail banks need to have a paid up capital of HK$30 million. they are a branch of a major bank only 25% of this sum is required. Development banks are about to be formed with Chinese participation. Offshore banks are allowed to provide services to non-residents and can take wholesale deposits. They have restricted access to the non-banking private sector (meaning?). Between 1980-86 domestic credit increased 24%. Foreign assets rose by 27% and remained ahead of overseas borrowings which increased 38%. In 1986 the number of banks incorporated in Macao stood at:

Macanese Portuguese Overseas

8 6

23 (including the Bank of China, Hongkong &

Shanghai Bank and Citibank)

Total offshore operations in 1986 were US$1.4 billion equivalent to 42% of the total balance sheet. There are no foreign exchange controls. There is no withholding tax and no stamp duty on transactions with non-residents. There is a flat rate tax of 180,200 patacas per annum on banks together with an annual 120,000 patacas supervision fee. Macao would like to see itself grow as a financial centre.

0

Public Investment: Said to have grown 42% per annum 1980-85.

There is no

medium term planning at present although there is a draft master plan to the year 2000 divided into 5 yearly segments. Concessions have been given to the private sector to provide power and water and these investments are now larger than public ones in this sector.

For 1987 investment of 522 million patacas is foreseen on:

(a)

Taipa road bridge (154 million P)

(b)

400 bed hospital (56 millipn P) tender let to Portuguese company (two further hospitals are planned, one in 1992)

New pier for the harbour tender let to Portuguese company

(c)

(a) New offices for the administration

It

Infrastructure Developments: The hospital and new pier have been mentioned above. In the latter case there will be a new terminal for the jetfoils (six double piers plus three others) built on three floors on reclaimed land. will be designed to handle 5000 passengers per hour. A tender has been let for a new prison. Projects in prospect are:

(a) New Taipa road bridge (see (a) above)

investment

(b)

Ka Ho Port

(c) Sewage Plant -

-

280 metres long, Government

4 metres depth (possibly 7 metres in phase 2) to take containers with 250,000 metric ton per annum capacity including inflammables. Planned start 1988 1988. Tender documents about to issue.

tender documents being prepared.

/Incineration