J W D Gray Esq UKDel
OECD
HKB
93
020/Foreign and Commonwealth Office
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London SW1A 2AH
Mr
Canon 22/1
сака
Your wording invaporated.
6 November 1989
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Miss 1496214
fu 22/11
Musz Major
14/11
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Gray,
OECD: INFORMAL VISIT OF COUNCIL MEMBERS TO MACAO
1.
Many thanks for your letter of 16 October reporting your impressions of Macao and the comments made by the Governor.
2. There is much in the Governor's comments with which we would agree. But if Peking's ultimate aim in concluding the agreements on Macao and Hong Kong is the reincorporation of Taiwan, events of this year must have made that an even longer term objective than it was already. In economic terms Macao will clearly play its part in the development of the Pearl River Delta region. But we should not overemphasize Macao's role in all this. Hong Kong is the real dynamo in the relationship by virtue of its economic size and strength and its international connections. The Governor may have somewhat glossed over the extent of Macao's economic dependence on Hong Kong. Macao's major industry remains gambling which is largely dependent upon Hong Kong visitors and, toymaking and textiles apart, much of Macao's economic activity is in areas in which Hong Kong does not particularly wish to become involved. The investment projects that the Macao administration is now undertaking are clearly a positive step but again we should not exaggerate their impact on the region as a whole.
3. The comments of senior leaders in China on the suppression of the democracy movement as reported by the Governor, were entirely in line with their statements to other visitors and in public. Following the June events the Chinese sought to contrast the cooperative attitude of the Portuguese with our supposedly more difficult approach. This is now fading somewhat and the Chinese appear to have reverted to their previous caution
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