Full Book Page 3

Arn, J. A. F. "Economic development, class formation and trade unionism." Planning and development of coastal open cities. Part two: Hong Kong. Edited by Choi, Y. P. L. (et al.). Hong Kong: Centre of Urban Studies and Urban Planning, University of Hong Kong, 1986, pp. 46-63.

Lin, T. B. and Mok, V. "Trade, foreign investment and development in Hong Kong." Foreign trade and investment: economic development in the newly industrializing Asian Countries. Edited by Galenson, W., Madison, Wisconsin: University of Wisconsin Press, 1985, pp. 219-56.

Sung, Y. W. "The Hong Kong development model: neoclassical economics in a Chinese society." Economic development in Chinese societies: models and experience. Edited by Yao, Y. C., Mok, V. and Ho, L. S.. Hong Kong: Hong Kong University Press, 1989., pp. 155-76.

1972. The PRC clarifies its position on Hong Kong and Macau to the United Nations Special Committee on Colonialism stating that, "the Chinese government has consistently held that they (... the questions of Hong Kong and Macau) should be settled in an appropriate way when conditions are ripe".

1980. July. British Government publishes a White Paper on the proposed British Nationality Bill. Under its provisions 2.6 million Hong Kong Chinese would no longer be designated as British Citizens but would be "Citizens of the British Dependent Territory of Hong Kong.

October. Following consultations with the PRC, the government places major controls on the increasing numbers of illegal immigrants entering the territory by abandoning the "reach base" policy and requiring all residents to carry an identity card.

1982. April. Teng Hsiao-p'ing (Deng Xiaoping) in a meeting with the former British Prime Minister Edward Heath in Peking (Beijing) states that there would be provision for Hong Kong people to rule Hong Kong after 1997 and constitutional provisions would be made to allow for the creation of a Special Administrative Region.

September. British Prime Minister Thatcher arrives in Peking (Beijing) to discuss the possible future arrangements for Hong Kong after the expiry of the lease for the New Territories due to run out in June 1997. Teng (Deng) and the British Prime Minister then release a joint communique which states that, "The two leaders of the two countries held far reaching talks in a friendly atmosphere on the future of Hong Kong. Both leaders made clear their respective positions on the subject. They agreed to enter talks through diplomatic channels with the common aim of maintaining the stability and prosperity of Hong Kong." On her return to Hong Kong Mrs Thatcher states that the nineteenth century treaties between China and Britain relating to Hong Kong could be altered but not abrogated. This position is rejected by the Chinese authorities. Differences over the sovereignty of Hong Kong emerge .

September. A further round of talks makes little progress. Both sides are stuck on the question of sovereignty and Mrs Thatcher the British Prime Minister reports that, "Great financial and political uncertainty existed concerning Hong Kong's future". This leads to a collapse in the value of the Hong Kong dollar.

October. The Chinese reiterate that the original treaties were invalid and confirm a deadline for an agreement as September 1984. Failure to meet this would result in a unilateral declaration of its position. A major run on the Hong Kong dollar leads to the pegging of the local currency to the United States dollar.

June 13. The Governor argues for mandatory repatriation of the Vietnamese boat people as the only solution to the problem. The government's policy of screening the Vietnamese is with the intention of repatriating nonrefugees is endorsed by the United Nations High Commission for Refugees.

October. The Governor delivers his annual policy speech in which he announces a massive port and airport development scheme costing HK$127 billion. This project is to become a focus for the PRC's attempts to become involved in policymaking in issues which straddle 1997.

December. The British government announces that 50,000 heads of household in Hong Kong and their dependents will be granted full British National passports with right of abode in the United Kingdom. Chinese authorities declare that they will not accept the validity of these passports.

September. Agreement is reached between the Vietnamese, British and Hong Kong governments, under which those Boat People who were not recognized as genuine refugees would be repatriated to Vietnam by the United Nations High Commissions for Refugees.

Sources. Various but in particular for figures post-war. Hong Kong Statistics Department, Hong Kong Statistics 1947-1967. Hong Kong:Government Printer, 1969. Hong Kong Government, Hong Kong (Years 1971, 1981, 1991). Hong Kong:Government Printer 1971,1981 1991.

Macau lies at the most southwesterly tip of the Pearl River estuary in southern China. It is about 45 miles west of Hong Kong and 90 miles to the southwest of Canton (Guangzhou). It consists of a peninsula of 2.1 square miles together with the two islands of Taipa (1.4 square miles) and Coloane (2.6 square miles). The peninsula is separated from the Chinese mainland by a narrow sandy isthmus. A Barrier Gate serves as the customs post and "borderline" between Macau and China. Official statistics in 1988 gave a population of 443,500, most of whom are Chinese. Since most of them are concentrated on the tiny peninsula, the population density there is among the highest in the world.

Early Chinese historical records show Macau as being largely deserted before the South Sung (Song) Dynasty. However, in 1276 the South Sung (Song) were defeated by the forces of what became known as the Yuan dynasty, and the royal family in exile, together with their loyal followers in 2000 junks, headed south. In the vicinity of Taipa and Coloane islands they encountered a typhoon and were soon compelled to go ashore. Although the Yuan troops followed, they were met with strong resistance from the South Sung (Song) supporters who finally prevailed and became the first inhabitants of Macau.

The first commercial interest in the area was shown by the Hoklo boat people who found the harbor of Macau a useful center for coastal trade in the southern provinces. However, Macau was not a major settlement before the arrival of the Portuguese in 1557. During the 15th century, Portugal began her sea expeditions in search of new trade routes to the East. The next 400 years of Macau history were epitomized by the Western penetration of the area and the EastWest interactions which ensued. Macau became a hub of international trade and a base for regional missions but also a shelter for less salubrious activities such as trade in opium and in coolie labor.

The scene was set when Vasco da Gama completed his voyage to Goa, via the Cape of Good Hope in 1498. Building upon this pioneering discovery of a new trade route, the Portuguese subsequently captured Malacca which became a steppingstone for further trade expansion into China and Japan. In 1513, Jorge Alvares, a Portuguese captain, arrived at the Bay of Tuen Mun and traded unofficially with the local Chinese. However, it was not until 1517 that the first Portuguese envoy, Tome Pires, arrived to try to establish an "enduring" official SinoPortuguese trading relationship. Although he was granted an audience with the Emperor, the death of the Emperor led to the failure of the mission.

At this time, the profitable trade between China and Japan had further lured the Portuguese to seek a coastal stronghold near Chekiang (Zhejiang) and Fukien (Fujian). However, their market in Liampo was destroyed by the Chinese official, Ch'u Yuan (Chu Yuan), who wished to ban all "evil" foreign trade. Under these circumstances, the Portuguese had to leave Liampo and search for a new base in the south. In 1535, they reached Lampacao and were allowed to moor in Macau, then called Haochingol. On the pretext of drying out soaked cargo they set up trading depots ashore in 1553. Four years later in 1557, the Portuguese, through paying tribute, succeeded in settling in Macau. Hence, many consider 1557 to be the foundation year of Macau as a Portuguese settlement. In 1582, a lease was finally signed between the two countries, and the Portuguese agreed to pay an annual ground rent of 500 taels of silver in exchange for the Macau leasehold.

Macau, under the Portuguese, became the first and most important trading post between the Orient and the Occident. It monopolized the sea routes between Europe and China. Concurrently, it developed as a bastion of Christianity and became known as "the city of the Name of God". In August, 1568, the first bishop of Macau, Dom Melchior Carneiro, visited Macau, and in 1575, Macau was decreed by the Pope as the first Asian diocese. By 1621, Macau had a population of about 20,000 with most of them engaged in crafts related to trade such as shipbuilding, canon forging and ammunition production.

Between the 16th century and the first half of the 17th century, three lucrative trade routes began to emerge; firstly, MacauMalaccaGoaLisbon;secondly, Canton (Guangzhou)- MacauNagasaki; and, finally, MacauManilaMexico. Large quantities of silk, brocade, cotton, textiles, gold, minerals, potteries, and herbal medicines were exchanged for silver, spices and ivory, of which silver constituted the largest share. From the trading ventures initiated from Macau, 900,000 teals (at 1.33 ounce per tael) of silver were shipped from Goa between 1585 and 1591, and about 14,890,000 taels were shipped in the Nagasaki trade between 1585 and 1630.

Because of the high returns of this trade, other seapowers such as the Spanish, the Dutch and the British contested Portuguese monopoly in between 1580 and 1808. Following the Union of Crowns between Portugal and Spain in 1580, the Spanish shared the profit obtained from the South Sea trade around Philippines, but they did not challenge Portuguese hegemony in Macau. This contrasted sharply with the attitude of the Dutch at the beginning of the 17th century. However, Dutch naval onslaughts and challenges between 1622 and 1627 proved unsuccessful and they eventually turned their attention to Taiwan.

British activity in the area began in 1635 when Captain John Weddel forced China to open trade along the Pearl River. However, it was not until 1808 that the British attempted a more direct challenge. On the pretext of protecting Macau from French attack, the British occupied the Portuguese enclave. At this point the Chinese authorities joined the Portuguese in the attempt to resist British penetration. The joint pressure of China and Portugal proved effective, and the British withdrew voluntarily.

This SinoPortuguese "cooperation" was something of an exception to their general relationship. There were constant tensions over jurisdictional and administrative issues over the period of Portuguese occupation, and Portugal only gradually evolved as the de facto ruler of the territory with China exerting economic and symbolic pressures in the form of levying ground rent, setting up a customs office, sending officials to visit the territory and expressing her claim to sovereignty.

Initially the Portuguese paid ground rent to the Chinese authorities, recognizing the fact that land was leased and not owned by the Portuguese. The internal affairs of the Portuguese community in Macau were administered by an elected Senate and the Captainmajor of the Japan Voyage. For their part the Chinese set up a China Office in Macau to deal with Chinese subjects and with the Portuguese trading relationship.

At the beginning of the 17th century, Dutch onslaughts necessitated the erection of fortifications and the building of a city wall by the Portuguese. This was met with resistance from the Chinese who feared that this was a means to occupy the territory permanently. In 1623 the first Governor of Macau, Dom Francisco de Mascarenhas, was appointed. The presence of a governor constituted symbolic threat to Chinese sovereignty, but did not lead to open conflict at the time. Indeed it was only two centuries later that events took a more violent turn. In 1846, the Portuguese appointed Joao Maria Ferreira do Amaral as the Governor of Macau, and in an attempt to emulate British successes in Hong Kong, Amaral was instructed to establish Macau as a truly Portuguese territory and to preempt Chinese influence. His expansionist policies included taxing Chinese subjects in Macau; expanding the territory beyond the Barrier Gate (i.e., the border); demolishing the Chinese customs office and expelling the officers. Such actions invited Chinese retaliation and, finally, Amaral was assassinated.

In 1862, Portugal sent Isidoro Francisco Guimaraes to sign the Treaty of Tientsin (Tianjin). With the mediation of the French ambassador, the Chinese intended to maintain Macau as a tributary territory under Chinese overlordship; but the Portuguese demanded that talks on the assassination of the Governor be held first. After lengthy negotiation, an agreement was reached, but it was never ratified largely because the Chinese discovered that the French translation of the treaty was different from their version in that it suggested that Macau would be severed from China.

In 1887, a Draft Agreement of the LusoChinese Treatise was concluded. This was ratified as the LusoChinese Treatise of Friendship and Trade in 1888. It recognized that "Portugal will forever administer Macau" but the question of border delimitation was postponed for further negotiations.

The failure to delimit the border led to continuing but low key disputes on the issue of Macau's sovereignty for decades to come, and an end to the impasse came only with dramatic changes in Portuguese domestic politics. Following a military coup d'etat in 1974 which toppled the monarchy in Lisbon, the new Portuguese constitution of 1976 stated that Macau would be governed by an Organic Statute which was promulgated by the Portuguese Parliament. Under this statute, a Legislative Assembly was established giving the city some avenues for citizen representation and participation. In 1979, China and Portugal entered into formal diplomatic relations and jointly accepted "Macau as a Chinese territory under Portuguese administration" with her future status to be solved through negotiation at the appropriate time. In 1987, the SinoPortuguese Joint Declaration was finally signed. China will resume the exercise of sovereignty of Macau on December 20, 1999 when Macau will become a Special Administrative Region under the formula of "One Country Two Systems". To clarify the details of this relationship a Basic Law Drafting Committee was set up in 1989, and the Basic Law will be promulgated by Peking (Beijing) in 1992.

Associated with these diplomatic changes, in recent years Macau's economy has also diversified considerably and moved away from its traditional role as a Portuguese trading center. At present, manufacturing and tourism are the mainstays of Macau's economy. Manufacturing industries such as garments, plastics and electronics account for about 40% of total GDP, whereas tourism accounts for about 25%. The opening up of trade with China in the 1980s enabled Macau to benefit from her unique location and connections with the nearby Chuhai (Zhuhai) Special Economic Zone. It is possible that Macau is in a position to reassert her historic role as an entrepot for trade, this time under clearcut Chinese sovereignty.

Although there were few signs of agriculture in the pretwentieth century maps and sketches of Macau, by 1918 some reclaimed land and lowlying land on Taipa Island was being used for growing rice. But it was between the midl940s and the late 1960s that Macau's agriculture began to develop. A drought in the Shantau (Swatow) area in 1946 caused many starving peasants to move to Macau and to begin vegetable gardening and paddy farming. In addition, when in 1952, the "Barrier Gate Incident" led to Chinese restrictions on food imports, the Macau government encouraged residents to take up vegetable growing. By the l960s, the colony could satisfy about half its demands. However, the rapid industrialization and urbanization of the 1970s diminished the importance of agriculture in Macau, and since the late 1970s, China has exported large quantities of fresh vegetables and other foodstuffs to Macau.

At present, only 3 per cent of Macau's land area is used for farming. Horticulture is the most important sector and is mostly located in Coloane. There is also a small livestock industry devoted to cattle, pigs, chickens and ducks. Fishing is also important with some of the catch being exported to Hong Kong.

Alvares was the first Portuguese to set foot on southern China. In 1513 while employed as the treasurer of the Malacca trading post, Alvares was sent by the CaptainGeneral of Malacca to the Pearl River area with orders to explore the possibility of trading with China. In the same year, he arrived at the Bay of Tun Men (now called Tuen Mun in Hong Kong), and stayed near Neilingding Island.

Although Alvares succeeded in establishing informal relationships with the local Chinese, he was unable to formalism any enduring SinoPortuguese trading relationship by contacting topranking Chinese officials or concluding a commercial treaty. These tasks later fell to Tome Pires and Simao Peres de Andrade. In July 1521, Alvares died and was buried. (See Pires, Tome).

Several churches and fortresses were erected by the Portuguese in the Cidade Crista from the 16th to the 18th centuries. The greatest of Macau's churches was built in 1602 adjoining the Jesuit College of Sao Paulo. Between 16171626, the first fortress, Sao Paulo do Monte, was built by Mascarenhas in a predominantly European baroque style.

The Cidade Chinesa was located outside the Cidade Crista and called Wangxia by the Chinese. The common architectural structures in the Cidade Chinesa were single twostorey buildings and temples. The former consisted of a commercial area on the ground floor and a living space on the first floor. The roof usually overhung the ground area with decorated wooden eaves. Also typical are the blue bricks and timber windows.

Temple designs were influenced by the Chinese architectural traditions of fung shui. Ideally, temples should face the sea or a broad valley and back onto a hill, which is regarded as the home for potentially dangerous dragons. Architecturally, the roof is usually of green or yellow rounded tiles. Stone lions often guard the door.

Despite the existence of two distinct cities for centuries, pure Portuguesestyle buildings have not existed in Macau. Rather Portuguese architecture has been subject to Chinese influences such as those seen in roofing materials and designs and the Eastern motifs carved on some Portuguese facades.

The arts have provided useful literary and visual records of Macau in the 16th to 18th centuries. Written works such as William C. Hunter's Bits of Old China (1911) are the literary counterparts of the visual records left by painters. Paintings by the Jesuits are of particular importance. The most wellknown depictions of pre1840 Macau are a pair of watercolors showing the Porto Interior and the Praia Grande, in the collection of the Luis de Camoes Museum of Macau. Other important works were influenced by George Chinnery (17741852). His impact was greatest on Lamqua (Guan Qiaochang) who produced paintings on Macau that bear Chinnery's style, and on Auguste Porget (18081877) who specialized in portraying the life of the common people of Macau. Some of his most famous sketches were published as lithographs in his book La Chine et Les Chinois, published in Paris in 1842.

The Assembleia Legislativa makes laws on matters of exclusive interest to Macau rather than Portugal. It also approves the annual budget, supervises the executive, and proposes amendments to the Organization Statute. Decisions of the assembly are normally made by majority vote, a twothirds majority being required only in special cases.

Before 1974, the Assembleia Legislativa had only an appointed membership. In 1975, the Armed Forces Movement in Portugal promised some directlyelected seats in Macau, and in 1976, the Organization Statute initiated the first Assembleia Legislativa containing elected members. Of its 17 members 5 were appointed, 6 indirectly elected and 6 directly elected. The term of office was 3 years.

The second assembly, which was scheduled to close in June 1984, was dissolved on February 23, 1984 because of the power struggle between the Governor, Vasco de Almeida e Costa, and the Macanese legislators. Four days later, Governor Costa introduced new electoral reforms which paved the way for the widening of registration and the reallocation of more of the indirectlyelected seats to the Macau Chinese. The main beneficiaries of these changes were the proPeking (Beijing) businessmen. (See Organization Statute).

After the signing of the SinoPortuguese Joint Declaration in 1987, the Chinese Premier, Li Peng, proposed to the National People's Congress in 1988 that a Macau Basic Law Drafting Committee (BLDC) be set up. The BLDC had a number of representatives from Macau (19 out of 48) most of whom were proPeking (Beijing) capitalists such as Dr. Ma Man-kee (Ma Wanqi), Stanley Ho and Victor Wu. The timetable for drafting the Basic Law was set out at its first meeting in October 1988. It was planned that the first draft would be ready for canvassing of public opinion by the second half of 1991. The revised draft would be submitted to the Standing Committee of the National People's Congress in Peking (Beijing) for promulgation by the second quarter of 1992, and a formal draft Basic Law would be ready for final approval by the beginning of 1993.

In April 1989, the 19 Macau representatives on the BLDC approved a list of 88 members of the Basic Law Consultative Committee. The list included deputies, trade unionists, bankers, traders, business executives and senior civil servants from Macau.

Up to 1991, the Basic Law Drafting Committee had worked quickly without any of the public dramas displayed in its Hong Kong counterpart. This may be partly because a substantial proportion of residents of Macau already have the right of abode in Portugal, and partly because the Assembleia Legislativa (Legislative Assembly) has since 1976 contained a directlyelected element. (See Dual Nationality; "Macau People Ruling Macau"; Macau Special Administrative region; SinoPortuguese Joint Declaration).

Before the founding of Hong Kong in 1842, the British frequently used Macau as a place for residence when they were waiting for the next opportunities to trade in Canton (Guangzhou). However, following the invasion of Portugal by Britain's enemy France in 1801, the British colonial authorities became concerned that a treaty between Portugal and France would threaten their interests in Macau. Accordingly, Lord Wellesley, the British Governor of India, occupied the territory in 1802 on the pretext of protecting Macau against the French. This particular action was quickly abandoned when China threatened to intervene, but in 1808, Lord RearAdmiral Drury directed a second attack on Macau. Although the Portuguese were compelled to accept British occupation, the Chinese authorities in Kwangtung (Guangdong) threatened to expel the British by force. Once again the British, fearing serious interruption to trade, withdrew voluntarily.

One of the municipal councils in Macau, established in 1962 with jurisdiction over the municipal duties of the Taipa and Coloane Islands. The new Electoral Law in July 1988 expanded the size of the Camara Municipal das Ilhas. Previously it had no elected members, but it now has 11 councilors of which 8 are elected. Its decisions on budgets and loans are subject to the Governor's approval. (See Coloane Island; Conselho Consultivo; Leal Senado).

The term refers to a military governor role in the early years of the Portuguese colonial administration. The first Captain General to be appointed in Macau was Dom Francisco Mascarenhas who in 1623 was appointed as governor of the territory with this rank. Originally such an appointment had been sought by the Portuguese in Macau who had been concerned that the previous arrangement whereby the territory was only overseen by a Captain Major had left the colony potentially weak in the face of Dutch attacks.

However, when Mascarenhas began to use the full range of his powers, the reaction among Senate members, Jesuits and the local Portuguese population as a whole was generally unfavorable. These powers included: the right to appoint most government officials (with the exception of legal personnel); command of the local garrison; the right to appoint, after consultation with the Senado da Camera (the Senate), all military commanders; and the right to arrest, and if necessary deport "any citizens who have shown themselves riotous, mutinous, or disturbers of the peace". (See Captain Major; Mascarenhas; Senate).

Like CaptainGeneral, CaptainMajor was a Portuguese military and naval title. In the context of 16th century Macau the relevant post was the CaptainMajor of the Japan Voyage. At this time the trade from Malacca to Nagasaki was very lucrative, and a CaptainMajor was appointed by the Portuguese Crown or the Viceroy of India to organize this trade trip as a royal monopoly. In effect the person concerned was the ex officio chief of all Portuguese ships and settlements between Malacca and Japan. He could also share the profit from the ventures. Since the ships involved needed to moor in Macau before the next trading season, the CaptainMajor effectively became the interim governor in Macau for that particular period. The post of the CaptainMajor was replaced in 1623 with the appointment of the first Captain General and Governor. (See CaptainGeneral; Portuguese Trade Routes; Senate).

From the early 16th century, missionaries came with traders to the Far East, arriving usually on board the annual carrack from Goa and Malacca. Macau soon became a strong Christian community with a flourishing religious life. On 23 January 1576, the Diocese of Macau was formally founded, and more churches were subsequently built in the 16th and 17th centuries. Religious orders such as the Jesuits, Franciscans, Augustinians and Dominicans also founded branches in Macau.

At the creation of the Diocese of Macau, the Vatican also announced its intention of creating more than 600 dioceses in Asia. Macau thus became the bridgehead of Christianity, and has sometimes, rather extravagantly, been known as the Rome of the Far East. Evidence of this missionary activity shows that from 1578 to 1740 a total of 463 Jesuits left Lisbon for Macau.

However, the development of the Catholic Church in Macau was not troublefree. In the early 18th century the Vatican ruled against the Jesuit practice of allowing Chinese converts to continue their customs of "ancestor worship". The split over this controversy which followed damaged the missionary effort in China, and the Augustinian fathers were expelled from Macau in 1712. In 1767, under a decree of the Marquis of Pombal in Portugal, the Jesuits were also expelled, only to return in the 19th century.

The church's role in education and science has been considerable, with the major initiatives often coming from the Seminary of Sao Paulo in Macau. As early as 1588, a printing press was established to make publishing of scientific and religious works possible.

In more modern times many religious orders and congregations have been responsible for building schools, orphanages, old people's homes and refugee centers in Macau. There are five parishes: the Cathedral, Sao Laurenco, Santo Antonio, Sao Lazaro, and Our Lady of Fatima. The island of Taipa is covered by the parish of Our Lady of Mount Carmel and Coloane is covered by the mission of St. Francis Xavier. (See Jesuits; Madre de Deus School; Sao Paulo Church; Seminary of Sao Paulo).

Following the introduction of direct elections under the terms of the 1976 Organization Statute (Organic Statute), a group of Portuguese and Macanese formed the Centro Democratico de Macao (CDM) to nominate candidates for elections. This group has been most critical of corruption and bureaucratism in the Macau Government. Its weekly radio program, "Democracy on the March", was banned by the Governor Nobre de Carvalho with the support of the Macanese organization, Association for the Defence of the Interests of Macao (ADIM).

Although Cantonese and Fukienese (Fujianese) dialects were widely used in Macau, today standard Cantonese is more common, and has become the medium of teaching in schools. These changes reflect the influence of immigration from Canton (Guangzhou) and the integration of Macau into the regional economy. About 70 per cent of the people are Chinese and most of them speak Cantonese.

The Macanese dialect is influenced by other languages and dialects from Goa, Malacca and Canton (Guangzhou). The resultant creole thus became differentiated from today's Portuguese. Although this dialect was once very important as the commercial language along the China coast, its usage seems likely to die out along with its predominantly older generation speakers.

Following the Portuguese coup d'etat of 25th April 1974, the postrevolutionary government of Portugal initiated its decolonization program through the 1976 Organization Statute (Organic Statute). Macau changed from a Portuguese colony into a "territory under Portuguese administration". Apart from abiding by the legal system of Portugal and the principles of the Organization Statute, Macau has enjoyed administrative, economic, financial and legislative autonomy.

Ch'u Yuan (Chu Yuan) was appointed as the Governor of Fukien (Fujian) and Chekiang (Zhejiang) in 1547, and was instructed by the royal edict to prohibit the illicit seatrade with foreign countries, especially Portugal. By this time, Portuguese middlemen in Macau were already making high profits from trade between China and Japan, and the livelihood of the coastal population had been improved by increasing trade. In 1548, Chu attacked the Portuguese ships in Liampo and destroyed the trading center. However, the ban on all foreign seatrade was unwelcome to many Chinese coastal traders who saw opportunities to trade with the SouthEast Asia countries. Their influence led to Chu's dismissal, and, following his subsequent humiliation by fellow ministers, Chu committed suicide in 1549.

Trade quickly began to flourish again in the Fukien (Fujian)Chekiang (Zhejiang) region, but the destruction of Liampo as a trading post had essentially forced the Portuguese to shift their operations south, and to concentrate on the use of Macau. (See Liampo).

When the Portuguese established Europe's first settlement on the Chinese coast in 1557, they expected it to be a bastion of Christianity as well as a trading post, and accordingly they called it "City of the Name of God, Macau." The first settlers included priests, and some of the first buildings were churches dedicated to "Mother of God" and named after popular saints.

As part of Macau's decolonization process, the Portuguese authorities introduced a scheme to integrate Macau civil servants into the Portuguese civil service after 1999. Under this scheme, one quarter of the civil servants could be given the option to work in Portugal when Macau reverts to Chinese rule. The civil servants would not be asked to make their choices until 19931994. The Macau Government estimated the number involved to be between 1500 and 2500.

Coloane Island is linked to Taipa by a causeway and to the peninsula by a bridge. Recently there has been extensive industrial, tourism and residential development on the island. Coloane is administered under the jurisdiction of the Camara Municipal de Ilhas established in 1962.

The Comissao de Defesa do Partimonio Arquitectonico Paisajistico e Cultural was founded in 1976 and strengthened in 1984. It has close links with the Instituto Cultural de Macau (Cultural Institute of Macau) and supports the Government in its preservation policy. Its choice for preservation is not confined to major monuments, but also extends to groups of houses and structures which contribute to the urban heritage.

Under the terms of the 1976 Organization Statute (Organic Statute), the Conselho Consultivo (Consultative Council) advises the Governor on all matters relating to the territory. The Council consists of the Governor as the President, five elected members, three ex officio members and two appointed members. Two out of the five elected members are returned from the Leal Senado and the Camara Municipal das Ilhas (i.e. the municipal councils); one by groups representing moral, cultural and welfare interests; and two by economic associations. The ex officio members are the Secretary for Public Administration, the Attorney General and the Director of the Financial Department. The two other councilors are community leaders appointed by the Governor. The members of the Conselho Consultivo cannot simultaneously be deputies of the Assembleia Legislative (Legislative Assembly). The meetings of the Council are held in secret. (See Organization Statute).

In the 17th century, the infamous "coolies trade" involved laborers being lured from China to Macau where they were sold and shipped overseas as "coolies". At the height of the trade in the 1670s there were said to be more than 300 "Labour Recruitment Houses" in Macau.

After the signing of the SinoPortuguese Joint Declaration on l3th April 1987, the Portuguese Government promised full citizenship rights for the ethnic Chinese residents of Macau and their descendants after 1999. This policy contradicted a statement made by Chinese Foreign Minister Wu Xueqian to the National People's Congress on 2 April in which he said that Chinese citizens in Macau who held Portuguese travel documents would not be able to pass their nationality to the next generation after 1999. On 18th April 1987 the Portuguese Government reiterated that under Portuguese law, nationality is transmitted by bloodline and not by place of birth. Children born to Portuguese citizens can acquire Portuguese nationality by Portuguese law, and the Joint Declaration would not represent a change in Portuguese policy. However, the Chinese Government continues to regard Portuguese passports held by Macau Chinese only as travel documents. To Peking (Beijing), all ethnic Chinese in Macau are Chinese nationals and thus they cannot hold dual nationality if they live in Macau after 1999.

In the 17th century, the Dutch rose as a third colonial power in Asia after Spain and Portugal. Over a period of years the Dutch managed to challenge the Portuguese position of trading preeminence in the Indies. It was also clear that they wished to take over the lucrative Japanese trade, then in the hand of the Portuguese. Alarmed by Dutch ambitions the Viceroy of Goa sought to strengthen the Portuguese military position, but the Spanish (and Portuguese) King, Philip III(15981621), ignored these requests for reinforcement. In the first decade of the 17th century, the Dutch launched a number of smallscale attacks on Macau; which were repulsed by the Macau Portuguese. An uneasy peace came in 1609, when the Netherlands and Spain signed the Truce of Antwerp which was intended to last for twelve years. However, this did not restrain the Dutch from challenging the Portuguese trade monopoly, nor deter the Portuguese from strengthening the fortifications of Macau.

Finally in 1622, a 13 shipstrong Dutch fleet, with about 800 soldiers, joined two Dutch and two English ships already moored near Macau. With many of the able bodied population absent on trading missions, there were less than one thousand people in the enclave, and probably less than onetenth of these were capable of bearing arms. However, under the leadership of CaptainMajor Lopo Sarmento de Carvelho, the Macau Portuguese succeeded in protecting the enclave.

The Electoral Union was formed in 1984 from a powerful alliance of proPeking (Beijing) business interests plus the Macanese elites. The group is headed by barrister and former Assembleia Legislativa Chairman, Carlos d' Assumpcao, who intended to boycott the 1984 election. However, after his visit to Peking (Beijing), there was speculation that he was urged to cooperate with the proPeking (Beijing) Chinese leaders in Macau. Subsequently, he formed the Electoral Union which was supported by Dr. Ma Man-kee (Ma Wanqi). The group won 4 directlyelected seats in 1984. In 1988, the Union won the majority of directlyelected and indirectlyelected seats in the Assembleia Legislativa. (See Assembleia Legislativa; Flower of Friendship and Development of Macau; Ma Man-kee (Ma Wanqi)).

The term is derived from the Portuguese "filho d'algo" meaning someone of aristocratic background (literally "sons of somebody"). . At the end of the 14th century and the beginning of the 15th century, the Fidalgo class became increasingly involved in the Portuguese exploration and colonization. Vessels would be commissioned by one of the great nobles and captained by a fidalgo of his household. This system allowed the monarch to control the expansion of imperial power while the fidalgo could get retain their status and privileges. Later, the term "fidalgo" was also used to refer to the CaptainMajors, CaptainGenerals, merchants, missionaries and Crown administrators at the time. (See Captaingeneral; Captainmajor; Portuguese Trade Routes).

Prior to 1980, the Chinese population in Macau were not active in elections of the Assembleia Legislativa. Only 4000 registered electors cast their vote. Subsequently, young Chinese liberals established a political group called the Flower of Friendship and Development of Macau to contest the 1984 election. Three of its candidates obtained a total of 3500 votes and one of them, Alexandre Ho (He), was elected to the assembly. In 1988, He, together with two other liberals, won 3 seats in the Assembleia Legislativa. The remaining seats were won by the Electoral Union, which represents proPeking (Beijing) business interests. Such an electoral success by the liberals marked a protest against what some viewed as interference in the electoral process by Governor Carlos Melancia. (See Electoral Union; Ho, Alexandre).

Gama was an experienced navigator and explorer, who,at the end of the 15th century, was commissioned by King Manoel of Portugal to find a viable and lucrative sea route to the East. Between 1497 and 1498, Gama succeeded in discovering this route, first round the Cape of Good Hope and then through the Indian Ocean to Goa, Cochin and Calicut on the west Indian coast. This route was later to open up trading opportunities for ships leaving Lisbon for Goa, Macau, China and even Japan. In 1522, Gama was appointed as the Viceroy of India. He died in 1524.

Goa, on the western coast of India, was originally a Hindu city which later came under Muslim control. In the early 16th century it became a Portuguese colony, and quickly developed forts, churches and seminaries. Goa effectively became the capital of the Portuguese mercantile empire in the Far East. A Viceroy, appointed by the Portugal monarch, commanded the city and exercised overall control of the colonization and administration of surrounding regions including Macau. Apart from being an administrative center, Goa was also strategically located along the LisbonGoaMalaccaMacau trade route in which textiles from Goa were exchanged for spices in Malacca. (See Malacca; Portuguese Trade Routes; Gama, Vasco da).

Before 1623 the emphasis on seasonal trading made it more appropriate for the functions of governor to be handled by the relevant Captain Major of the Voyages to Japan. These were appointed by the Portuguese Crown or by the Portuguese authorities in India. In 1623 the Portuguese recognized the increasing importance of Macau by appointing the first fulltime Captain Major or governor, Dom Francisco de Mascarenhas, who was appointed in 1623. For China the presence of a Portuguese governor constituted a symbolic threat until the signing of the LusoChinese Treaties of Friendship and Trade in 1888.

Between 1623 and 1991 there have been 126 changes in the individual or group occupying the role of governador (see Appendix 1). According to the Organization Statute of 1976, the Governador is appointed by the President of the Portuguese Republic. This usually follows consultation with the local population through the Assembleia Legislativa and representatives of some social organizations.

The Governador serves a five year term, and has both executive and legislative powers. As the head of the executive, he formulates general policy, executes laws and coordinates the civil service. These executive powers are exercised with the support of an executive structure the secretarios (secretaries) and the Conselho Consultivo (Consultative). (See Captain General; Captain Major).

Ho Yin (He Xian) was a Chinese businessman in Macau who died in 1983. His business empire included the Tai Fung Bank, hotels, restaurants and bus and taxi companies. He was accepted both by the Chinese community and by the Portuguese administration as a prominent member of society between the 1960s and the 1980s. He chaired several public utility companies and was the president of the Chinese General Chamber of Commerce, vicepresident of the Assembleia Legislativa and a member of the Standing Committee of the Chinese National People's Congress. His son, Edmund Ho (He), emerged as a prominent political figure in the 1980s. At present, he is the executive director and general manger of the Tai Fung Bank. He has been regarded as the most probable person to be the first ethnic Chinese governor of Macau. (See Macau Chamber of Commerce).

Alexandre He belongs to a liberaloriented political group called Flower of Friendship and Development of Macao. In 1984 He became the first liberal to be directly elected to the Assembleia Legislativa. In 1988, He, together with other liberals, won 3 seats in the assembly. Despite their success in 1988, He and his allies remained a small minority within a proPeking (Beijing) coalition.

Because of a lack of institutionalized channels for communication between the government and the people in Macau, many Macau Chinese have frequently used He as channel to articulate their interests and grievances. (See Flower of Friendship and Development of Macau).

In the early years, Macau functioned almost solely as a trading port and there was little industrial development. The first industrial plant, a cannon foundry, was set up by a Portuguese by the name of Manuel Tavares Bocarro. This cannon casting industry served an important need of Portuguese trading routes between Lisbon and the East. However in the 18th century, the industry began to decline and the foundries were closed down.

Until after the Second World War, the main industries in Macau were confined to the making of joss sticks, firecrackers and matches for export to Southeast Asia, Europe and America. However, from the 1930s, smallscale textile industries, shoe factories and furniture factories also began to appear. But it was not until the 1970s and the 1980s that largescale modern industries such as garment manufacturing, plastics, toys and electronics began to emerge. These were largely stimulated by the attempts of Hong Kong businesses to circumvent the wave of protectionism in the West against exports from Hong Kong. These circumstances lay behind the development in the 1970s of Hong Kongbased investment in the clothing sector. Similarly in the 1980s, when the USA decided to withdraw the Generalized System of Preferential Treatment (GSP) scheme from Hong Kong on products such as toys and artificial flowers, this triggered a second wave of Hong Kongbased investment. The toy industry now accounts for 10% of Macau's exports.

The influx of illegal immigrants has been a problem since the late 1970s. In March 1982, the Macau Government requested the members of five major chambers of commerce to register with the government all illegal immigrants employed in their factories and companies, together with their families and any family members without identity cards. As a result a total of 29,000 people were registered. In May of the same year, the government also issued more temporary abode permits to workers who were eventually issued with identity cards in June 1985.

In January 1989, the Macau Government carried out another registration of youngsters and students under 18 who were not identity card holders, and more than 4,500 were issued with identity cards. In the following year, the Government sought to register the parents of these youngsters. As soon as this announcement was made, another 50,000 illegal immigrants came forward.

In 1980, the government attempted to encourage the development of the financial sector by establishing the stateowned Instituto Emissar de Macau (IEM), which issues the currency and advises on banking regulations. From this time the number of banks increased rapidly. Apart from foreign banks, such as Citibank and Banque Nationale de Paris, there are 6 Chinese banks in Macau with 2 being affiliates of Bank of China. These Chinese banks in particular have good connections with investors in the Zhuhai Special Economic Zone.

From the early 16th century, missionaries accompanied the traders to the East. Religious orders such as the Jesuits founded branches in Macau. They built churches, hospital and orphanages to help those in need. The Jesuits also opened and ran the Seminary of Sao Paulo, otherwise known as Madre de Deus. This was made into a university college in 1594 and began to offer the first degree courses in theology and arts in 1597. Notable Jesuits, such as Father Matteo Ricci, were regarded as the pioneers in introducing science into China.

The order suffered a setback in 1773 when the King of Portugal demanded the dissolution of the Order because of an alleged assassination attempt. The Jesuits were expelled from Macau and the Seminaries of Sao Paulo and Sao Jose were closed. (See Catholic church; Madre de Deus School; Ricci, Matteo; Rites Controversy; Sao Paulo Church; Seminary of Sao Paulo).

Macau was largely untouched by the events of June 4th 1989 in Peking (Beijing). A demonstration involving between 50,000 to 100,000 people took place, but no organized movement with prominent leaders emerged from the protest. The Macau Government, keen to show its stable relationship with China, announced during the upheaval that there would be no change in its plan to build an international airport on Taipa Island. By contrast with Hong Kong, there was no postponement of the first meeting of the Basic Law Consultative Council and there were less demands for political reform.

The Leal Senado was established in 1583, and is Macau's oldest local political institution. Originally it was a senatorial organization in accordance with the medieval Portuguese tradition of municipal government. After the Portuguese revolution of 1820 and its subsequent constitutional reforms, the colonial empire was reorganized and in 1834 the Leal Senado was converted into a municipal council. As a municipal council, it manages the urban area of the Macau peninsula.

Before July 1988, the Leal Senado had 8 members of whom 4 were appointed by the Governor. The new Electoral Law in July 1988 expanded the Leal Senado into a 15member council with only 3 members being appointed. Its decisions on budgets and loans are subject to the Governor's approval. (See Camara Municipal das Ilhas).

For most of the 1970's and 1980s the pace of localization in the Macau civil service was slow. Up to 1987, approximately 50% of the 700 professionalgrade civil servants were expatriates from Lisbon. The Macanese, who constitute 3% of the population, occupied most of the middle ranking grades, and the Chinese have normally worked at the lowest levels.

However, in May 1988, Governor Melancia, after his visit to Peking (Beijing), declared that localization of the civil service would become an official policy. In August 1988, the Macau Government drafted a bill to recognize nonPortuguese degrees or certificates, and from February 1989, Chinese (Cantonese) became an official language alongside Portuguese. By the end of 1989, all official documents were to be bilingual.

Liampo is currently known as Ningpo (Ningbo), and is situated on the Chekiang (Zhejiang) coast. Following the ban on sea trade imposed by the Kwangtung (Guangdong) authorities in the 1520s, the Portuguese concentrated on trade in Fukien (Fujian) and Chekiang (Zhejiang) provinces. In 1540, the Portuguese began wintering regularly in Liampo. However, the Chinese authorities became increasingly irritated by the aggressive behavior of some Portuguese traders, and in 1548, the newly appointed Governor of Chekiang (Zhejiang) and Fukien (Fujian), Ch'u Yuan (Chu Yuan), moved to end the illicit trade and Liampo was destroyed. The Portuguese trading operations moved southward to Lampacao and later to Macau. By 1557 Macau had become established as the major Portuguese trading center in 1557. (See Chu Yuan).

Gambling is a significant facet of Macau's economy with extensive involvement of both the government and the local community. Income from gambling operations constitutes about 60% of the government's total income and 20% of the total Gross Domestic Product (GDP).

The first step taken by the government to grant licenses for gambling was under the governorship of Captain Isidoro Francisco Guimaraes (18511863). In 1934 the government granted monopoly rights to all casinostyle gambling. The first franchise contract was granted to Tai Xing Company whose first casinos were in the Central Hotel.

On 1 January 1962, the Sociedade de Turismo e Diversoes de Macau (STDM) took over as the licensed holder, and has coordinated the development of gambling into a major enterprise. By 1985, the STDM owned 5 casinos in Macau and a ferry service between Hong Kong and Macau. It has also been instrumental in attempts to revive horse racing and associated gambling activities. (See Sociedade de Turismo e Diversoes de Macau).

This agreement , also known as the Treaty of Peking (Beijing), was based on the protocol usually referred to as the Lisbon Agreement. This had been drafted in 1887 by the Portuguese Minister of Foreign Affairs and a delegate of the Chinese Imperial Maritime Customs. On December 1, 1888, the Governor of Macau, Tomas de Sousa Rosa, signed the Treaty. It was ratified on August 28, 1889. Inter alia this confirmed the "perpetual occupation and government of Macau and its dependencies by Portugal as any other Portuguese possession". However, Portugal was obliged not to "alienate Macau and its dependencies without agreement with China". In this way, China has retained a very limited sense of symbolic sovereignty over Macau. However, the question of border delineation was postponed, and this created constant frictions between the Portuguese claim that four islands comprise Macau's territory and the Chinese consent of only Taipa and Coloane. In 1928, when the treaty was renewed, the sensitive issue of border delineation was again evaded.

The term "Macanese" is difficult to define. Many see the Macanese as a racial mixture of Portuguese and Chinese. But many of those who refer to themselves as "pure Macanese" claim to be the descendants of the original PortugueseMalaccan combinations, and deny biological links with the Chinese population.

In Macau's early years, when the Portuguese upper class looked down on the Chinese as secondclass citizens, the Macanese identified with the Portuguese. In modern times they have filled the middleranking positions within the civil service. However, they also resent the way in which Portuguese nationals have filled the most senior positions in the past, and the way in which the policy of localization will discriminate in favor of local Chinese in the future. (See Chinese and Macanese Dialects; Macanese Culture).

Macau has been under Portuguese influence for about 400 years, but the cultural fusion between the Portuguese and Chinese has been uneven. In the field of arts, medicine and religion, for example, both cultures have maintained their separate identities. Overlaps have arisen, however, in areas such as Macanese dialect, architecture and cuisine. (See Macanese).

The Macau Chinese Chamber of Commerce, established in 1911, is a bastion of proChina influence. Its Chairman Dr. Ma Man- kee (Ma Wanqi) is the most powerful locallyborn entrepreneur in Macau. The chamber consists of 2700 members most of which are private firms. Other members include trade associations, stateowned companies and guilds. (See Ma Man-kee (Ma, Wanqi)).

However, the SinoPortuguese Joint Declaration of 1987 stipulated that localization of toplevel officials would be the priority and that Macau would move towards "Macau People Ruling Macau" by l999. (See Basic Law of Macau; Macau Special Administrative Region; SinoPortuguese Joint Declaration).

During the negotiations leading to the SinoBritish Joint Declaration on the future of Hong Kong in 1984, the Chinese Government suggested that the question of Macau would be settled only after the Hong Kong issue has been decided. In 1987, the SinoPortuguese Joint Declaration on Macau's future was signed and Macau is to become a Special Administrative Region of the People's Republic of China on 20th December 1999. (See Basic Law of Macau; "Macau People Ruling Macau"; SinoPortuguese Joint Declaration; SinoPortuguese Negotiations).

The Madre de Deus School was founded by the Jesuits on lst December l594. In 1597, it was made into a university college and the first degree courses were organized in theology and arts subjects humanities, Greek and Latin, rhetoric and philosophy. In 1601, 59 Jesuits, of whom 26 were priests, lived at Sao Paulo. There were also a school of oriental languages, a school of music and one of painting. After the expulsion of the Jesuits, the college was used as an army barracks, until, in 1835, it was destroyed by fire. (See Catholic Church; Jesuits; Ricci, Matteo).

In the context of early trading routes for spices, Malacca was strategically situated between the Spice Islands and Baghdad. Its status in the years prior to the Portuguese arrival was that of a protected nation under Imperial China. In 1511, Alfonso de Albuquerque, a Portuguese captain, took Malacca by force, and a CaptainGeneral, responsible to the Viceroy at Goa, was appointed to administer the city. Malacca then became a key Portuguese trading post until 1641, when it was captured by the Dutch. (See Goa; Portuguese Trade Routes).

Dr. Ma Man-kee (Ma Wanqi) is a local Chinese businessman in Macau who succeeded Ho Yin (He Xian) as the Chairman of the Macau Chinese Chamber of Commerce. He is a prominent supporter of Peking (Beijing). Up to l990, he was a member of the Macau Assembleia Legislativa. He also served on the Standing Committee of the Chinese National People's Congress and the Chinese People's Political Consultative Conference of the PRC. (See Macau Chamber of Commerce).

Dom Francisco de Mascarenhas arrived in Macau in 1623 to become the first fulltime Governador. His prime aim was to build forts to protect Macau from a potential Dutch invasion. Under his administration, the fortresses of Sao Paulo do Monet, Barra, Sao Francisco, Penha and Sao Januario were finished and the fort of Guia was planned. Mascarenhas also established a cannon foundry.

In 1849, Mesquita was a young Macanese sublieutenant. In the tense period following the assassination of Amaral the Chinese stationed a strong armed force at Pakshanlan (Passaleao) about a mile beyond the Barrier Gate. The Portuguese, in retaliation, decided to counterattack, and on August 25, 1849, Mesquita led two sneak attacks to destroy the center of the Chinese fort and expel the garrison.

The Nan Guang Trading Company was China's sole political and commercial representative in Macau from 1949 to 1984. It was then split into the Nan Guang Company, which is the political arm, and the Nan Guang Trading Company, which is the commercial arm. The latter is under the control of the Ministry of Foreign Economic Relations and Trade of China. It runs a number of factories and retail outlets. It also acts as an agent in appointing distributors for Chinese products in Macau.

As part of this policy the nearby Chuhai (Zhuhai) area has been designated a Special Economic Zone, and Macau is able to use its China connections by exporting and reexporting goods to and from China. As part of its plans to develop this trade further the Macau Government has approved proposals to construct a deepwater harbor in Coloane by 1991 and an international airport by 2010.

Following the coup d'etat that toppled the regime of Marcello Caetano in 1974, the Portuguese constitution of 1976 stated that Macau is not part of Portuguese territory. Instead Macau was to be governed by a statute which would be appropriate to Macau's special situation. The Assembleia de Republica (the Portuguese Parliament) eventually drew up the Organization Statute as the constitution of Macau.

This statute lays down the fundamental organization of the government system. It specifies the scope of Macau's legislative, administrative, economic and financial autonomy. In terms of its autonomy, Macau's Assembleia Legislativa can initiate amendments to, or total repeal of, the Organization Statute. There is no requirement for a qualified majority in the Portuguese Parliament. Although the President of the Republic has the power to appoint and dismiss the Governor, who is politically responsible to him, the appointment is compulsorily subject to previous consultation with the local population through the Assembleia Legislativa. The responsibility for external representation rests with the President who may delegate such powers to the Governor. Thus when such delegation occurs, Macau may conduct her own external relations.

Macau's affiliation with Portugal has three main dimensions. Firstly, on a proposal by the Governor to the President, the Assembleia Legislativa can be dissolved in the public interest. Secondly, the Court of Audit can adjudicate disagreements between the government and the Administrative Court. Thirdly, the Supreme Administrative Court can hear appeals against decisions by the Governor and the Secretaries.

Following the signing of the SinoPortuguese Joint Declaration in 1987, the promise of a "high degree of autonomy" stimulated considerable discussion on the amendment of the Organization Statute in areas such as the powers of the Governor and the possible enlarging of the membership of the Assembleia Legislativa. In June 1987, reformminded liberals, such as Alexandre Ho (He), suggested a committee should be set up to amend the Organization Statute. This was met with indifference from a majority of the deputies in the Assembleia Legislativa who believed that China would not endorse further democratization in Macau.

The term "Padroado Real" referred to the royal patronage of the Catholic Church. The Portuguese Crown inherited certain rights and duties as the patron of the Roman Catholic Missions and ecclesiastical establishments in its colonial possessions in Africa, Asia and Brazil. Initially this was mutually beneficial to both the Crown and the Church in their attempts to expand their influence. One major advantage for the Portuguese was the Papal ban on missionaries sailing to the region vaguely known as "India" except on board Portuguese ships. A second was the right to nominate or to confirm all appointments to vacant Bishoprics or other high ecclesiastical offices in Asia.

In the mid17th century, the Papacy began to see the arrangement as against their interests, and irrelevant to the changing political and economic situation where Portuguese power was being replaced by the British and the Dutch. Accordingly the privileges of the Crown under the Padroado Real were gradually removed throughout the 17th to 18th century. (See Catholic Church; Jesuits).

Macau's unit of currency is the pataca (MPtc). The pataca is tied to the Hong Kong dollar at MPtc 103= HK$100. As the Hong Kong dollar is linked to the US dollar, the value of Macau's imports and exports are affected by the changes in the value of the US dollar.

Pires was the first Portuguese envoy to China. After Alvares' early voyages to China, the Portuguese recognized the need to establish an official relationship with China and to gain the right to settle in Chinese territory. In 1518, the Viceroy of Goa, Lopo Soares de Albergaria, sent Pires as an ambassador to China.

After waiting in Canton (Guangzhou) for two years Pires was given permission to travel northward. He was cordially received by the Emperor Chang Te (15061521) in Nanking (Nanjing) and was told to go to Peking (Beijing) for an official audience. However, the Emperor died soon afterwards, and Pires lost his mentor.

Around the same period another Portuguese mission, headed by Simao Peres de Andrade, was causing more antagonism with the Chinese authorities. As a result, the new Emperor, Chia Ching together with his conservative civil service, reversed their attitude toward the Portuguese diplomats. Pires was sent to prison in Canton (Guangzhou) where he eventually died.

The early settlers in Macau were seafarers, many of whom brought slaves and mistresses from Goa and Malacca. By 1555, the population was estimated to be about 400 rising to about 20,000 by 1750. In the early 1900s, Macau's population stood at 75,000, a figure which was to double by the 1930s. The influx of Chinese particularly following the war with the Japanese increased the population to around 150,000 by the end of the Second World War. The 1981 census figure of 268,300 probably seriously underestimated the true total by failing to include large numbers of illegal immigrants.

Within the population the ratio of Chinese over Portuguese has increased over time. By 1800, there were approximately as many Chinese as Portuguese. In the subsequent period up to the early 20th century, the ratio of Chinese population continued to grow because of the unstable political conditions in China. While the numbers of Portuguese remained the same in absolute terms, their percentage of the total had by 1926 declined to its present level of around 2 to 3 per cent. (See Illegal Immigrants).

The current legal system in Macau originates from Portugal and is based on metropolitan law. As with Portugal's other colonies, Macau's legal system became subject to the Portuguese Civil Code on 18th November, 1867. Subsequently, in 1909 and 1911, Chinese customs were codified to become part of the laws of Macau. With rapid social and economic change in recent years, a range of new laws have been approved by the Assembleia Legislativa and the Governor under the Organization Statute of 1976.

The resumption of Chinese sovereignty in 1999 has been associated with moves towards bilingualism in law. The main laws are to be translated into Chinese and new laws to be drafted in both languages. By 1999, the Basic Law instead of the Portuguese Civil Code will be used in Macau. (See Basic Law of Macau; Organization Statute).

To pave the way for a smooth transition of power in 1999, the Portuguese Government has assured full nationality status to the Macanese, and some Macau Chinese who were born in Macau before 1979, and to their children. This group of Portuguese passportholders are entitled to right of abode in Portugal, to find employment in countries of the European Community, and to transfer their nationality to their children. It was estimated by the government in 1990 that this group amounts to 150,000, rising to a possible 200,000 by 1999. This arrangement, which was written into the SinoPortuguese Joint Declaration as a memorandum, has largely stemmed the tide of emigration in Macau. (See Dual Nationality; SinoPortuguese Joint Declaration; SinoPortuguese Negotiations).

Between 1560 and 1640, Macau was at the center of 3 trade routes between the Far East and the West. In the MacauMalaccaGoaLisbon route, ships left Lisbon with metalware in March in order to arrive at Goa in September. They left Goa with cotton textiles which were in turn exchanged for spices in Malacca. These were shipped from Malacca to Macau for their final destinations in China and Japan. The Canton (Guangzhou)MacauNagasaki route was based on the exchange of Chinese silk for Japanese silver. This route was the most profitable and was a privilege of the Portuguese Crown. Usually it was under the direction of a CaptainMajor appointed by the Crown. Finally, the MacauManilaMexico route involved silver coins shipped from Manila in settlement for goods imported from Macau and China. (See Gama, Vasco da; Goa; Malacca).

The Jesuit Father Matteo Ricci arrived in Macau in 1584. He prepared for his China missions by learning to speak Chinese in the Seminary of Sao Paulo in Macau. His training as a mathematician and an astronomer allowed him to introduce much of European science to China. He arrived in Peking (Beijing) in 1600 and was allowed to set up a Christian mission by the Emperor. He died in Peking (Beijing) on 11 May 1610. (See Catholic Church, Jesuits; Sao Paulo, Church; Madre de Deus School; Seminary of Sao Paulo).

In the 17th century, the socalled "rites controversy" arose between the various Catholic religious orders in their approach to Chinese society. The Jesuits permitted Chinese converts to continue practices such as ancestor worship, but the Dominicans and Franciscans held the opposite view.

In the face of this controversy, Pope Clement XI attempted unsuccessfully to involve the Ch'ing (Qing) Emperor K'ang-hsi (Kangxi) (16621723). This incident fuelled the Rites Controversy and led to the persecution of Chinese Christians in Macau. At the climax of this controversy, the Augustinian fathers were expelled from Macau in 1712, and this was followed by the expulsion of the Jesuits in 1767. (See Catholic Church; Jesuits).

The greatest of Macau's churches was built in 1602 adjoining the Jesuit College of Sao Paulo, the first Western college in the Far East. According to early travellers the Church, made of clay and wood, was richly decorated and furnished. The facade of carved stone was built by Japanese Christian exiles and local craftsmen under the direction of Italian Jesuit Carlo Spinola between 1620 and 1627. After the expulsion of the Jesuits, the college was used as an army barracks, and in 1835 a fire destroyed the college and the body of the church. The surviving facade rises in 4 colonnaded tiers and is covered with carvings and statues which illustrate the early days of the Church in Asia. (See Catholic Church; Jesuits; Seminary of Sao Paulo).

The Seminary of Sao Paulo was founded by the Jesuits on December 1, 1594. In 1597, it was made into a university college and offered its first degree courses. In 1601, 59 Jesuits, of whom 26 were priests, lived at Sao Paulo. There were schools of oriental languages, of music and of painting. After the expulsion of the Jesuits in 1767, the college was used as an army barracks until in 1835 it was destroyed by fire (See Catholic Church; Jesuits; Sao Paulo, Church; University of East Asia).

The Senate has been Macau's major political institution since 1583 when Bishop Dom Leonardo de Sa and Bishop Carneiro took the initiative to call together Portuguese citizens in Macau to form the Senate (or Senado da Camera). The Viceroy of Portuguese India issued a decree in 1586 which empowered the Senate to elect its members triennially and to make judicial appointments. The Senate was composed of citizenelected representatives, three aldermen, three legal officials and a Secretary. It was responsible for the civil and financial matters of the settlement. The governmental power of Macau was shared between the Senate, the Magistrate (or Ouvidor) and the CaptainMajor whose power was limited to administering the garrison. In fact, the Senate in Macau served as an effective check on any despotic tendency of the local governor.

In 1834, political reforms in Portugal led to a reorganization of the Portuguese empire. The Ouvidor and the Senate of Macau were dissolved in 1835 by the Governor, who was then vested with full powers as a civil governor, and a municipal council, still called Leal Senado, was set up to replace the old Senate. (See Leal Senado (Loyal Senate); Union of Crowns).

Between June 1986 and March 1987 four rounds of negotiations on Macau's future were held in Peking (Beijing) between a Chinese team led by Deputy Foreign Minister Chou Nan (Zhou Nan), and a Portuguese team led by the Ambassador to the United Nations Dr. Rui Medina. On March 26, the delegates initialled a SinoPortuguese Joint Declaration on Macau, and on April 13, premier Chao Tzu-yang (Zhao Ziyang) and Portuguese Prime Minister, Anibal Cavaco Silva, officially signed the Declaration in Peking (Beijing).

To a large extent, the joint declaration mirrors that of Hong Kong. The concept of "One Country Two Systems" will apply. Essentially this means that Macau's current social and economic systems and lifestyle will remain unchanged for 50 years, even after Macau becomes a "Special Administrative Region" of China in 1999. Under the accord, Macau can participate in international bodies as an independent entity; the flow of capital will be unhindered and the Macau pataca will remain freely convertible.

However, there are differences between the two joint declarations. The political arrangements for the selection of legislators and the chief executive included in the Macau pact are less "democratic" than those in the Hong Kong agreements. For instance, Annex I of the Macau pact states: "The legislature shall be composed of local inhabitants, and the majority of its members shall be elected ...... and its chief executive shall be appointed by the Central Government on the basis of the results of elections or consultations held in Macau." In contrast the Hong Kong pact states: "The legislature of the Hong Kong Special Administrative Region shall be constituted by elections."

Similarly, a crucial point in the Hong Kong agreements gives assurances that the Chinese garrison will not interfere in the internal defence of the territory, while the Macau accord only states briefly that "the Central Government shall be responsible for the defence of the Macau SAR."

The issue of Macau nationality is also slightly different from that of Hong Kong because of the prominence of the Macanese who have already taken Macau as their permanent residence. Macanese interests have been given special consideration under the nationality arrangement in the memorandum.

Important questions facing the SinoPortuguese Joint Liaison Group will be the dual nationality issue and the localization of the civil service and laws. Land leases will be handled by a specially appointed Land Group. Under the existing agreement, up to 20 hectares a year may be made available for leasing until 1999. (See Basic Law of Macau; Dual Nationality; "Macau People Ruling Macau"; Macau Special Administrative Region; Portuguese Nationality Status; SinoPortuguese Joint Declaration; SinoPortuguese Negotiations).

Although the postrevolutionary government of Portugal offered to return Macau to China three times between 1974 and 1977, China rejected each offer - largely because the change in Macau's status might shock Hong Kong. In return for Portuguese willingness to postpone returning Macau to China, China permitted Macau to democratize the legislature but would not permit any demand for independence. The terms of a secret agreement concluded between China and Portugal in 1979 stated that Portugal was to continue administering Macau but sovereignty belonged to China. The date of returning Macau to China was to be settled through negotiations when the time was thought to be appropriate by both sides.

In subsequent negotiations, Portuguese diplomats proposed that Macau should be returned to Chinese rule in the year 2004. China rejected this proposal and insisted on the reunification of Macau before 2000. In 1987, the SinoPortuguese Joint Declaration on Macau's future was signed specifying that Macau would become a Special Administrative Region of the PRC on 20 December 1999. (See Basic Law of Macau; Dual Nationality; "Macau People Ruling Macau"; Macau Special Administrative Region; Organization Statute; Portuguese Nationality Status; SinoPortuguese Joint Declaration).

Sousa was a sixteenth century native of the Algarve region of Portugal who married and settled in Chaul on the west coast of India before he sailed eastward as the commodore of a fleet bound for Japan. While in Canton (Guangzhou) in 155354, he signed an agreement with a provincial Chinese Admiral in charge of the Kwangtung (Guangdong) coastal regions of Sheung Chuen and Lampacao. As a result of this agreement, SinoPortuguese trade gained official status and the Portuguese were allowed to trade in Canton (Guangzhou) and other Kwangtung (Guangdong) ports. In exchange for this official recognition, the Portuguese agreed to be place themselves under the surveillance of the Chinese authorities and to pay tax.

James Summers was a Protestant teacher of St. Paul's College in Hong Kong in the late 1840s who was at the center of a minor diplomatic storm between Portugal and Britain. In June 1849, British and American warships took part in a regatta in Macau. Before the contest, there was a Corpus Christi procession, and when the Host came by Summers was reluctant to doff his hat even when ordered by a priest and, later, by the Governor, Amaral. As a result, he was jailed.

A senior British officer, Captain Henry Keppel, demanded Summers be released arguing that he was subject to British extraterritorial rights. This was rejected by the Macau authorities. Keppel and a party of men then freed Summers by force, shooting one jailer and hurting some others. Diplomatic protests led to the British government making a formal apology, censuring Keppel and granting a pension to the family of the dead jailer.

Dr. Sun Yatsen (Sun Yixian), the founder of the Chinese Republic, had many connections with Macau in his early years. Dr. Sun was born in 1866 in Xiangshan county which comprised Macau and other nearby areas. In 1892, he graduated from the Hong Kong College of Medicine for Chinese. Soon he went to Macau to work as a volunteer medical officer in the Kiang Wu Hospital. He was the first Chinese to practice Western medicine in Macau. His expertise made him wellknown among citizens and he built up good connections with many important people in Macau. He also founded a newspaper to advocate revolutionary ideas. He was a key figure in the successful attempt to overthrow the Ch'ing (Qing) Dynasty and became the first President of the Chinese Republic. Dr. Sun died on March 12, 1925. (See also Hong Kong entry).

Tourism and gambling are important elements in the Macau economy, probably accounting for about 25% of the total Gross Domestic Product (GDP) in the l980s. Their importance was formally recognized as early as 1960 with government legislation to promote tourism in Macau, including the establishment of a Tourism and Information Center as an independent authority within the Government of Macau. (See Licensed Gambling; Macau Tourism and Entertainment Company).

After the Opium War, China signed a number of treaties with foreign powers recognizing their rights of trade and administration in Chinese territories. The Portuguese saw these as a chance to obtain Macau formally and permanently. In 1862, Macau's Governor, Isidoro de Guimaraes, was appointed as the ambassador to China to negotiate a treaty. With the mediation of the French ambassador, Guimaraes succeeded in lifting Macau's Ground Rent payment and terminating the presence of the customs officers who symbolized Chinese claims to sovereignty over Macau. The Treaty of Tientsin (Tianjin) was therefore initialled on August 13, 1862 giving full recognition of Macau as a Portuguese colony. However, two years later, when the treaty was due for ratification, the Chinese discovered that the French translation of the treaty had stipulated to Portugal the severance of Macau. China therefore refused to ratify the treaty, and further negotiations failed to conclude any formal agreement.

The signing of the Treaty of Nanking (Nanjing) in 1842 ceding Hong Kong to Great Britain signalled China's weakness to the outside world. In February, 1844, the American ambassador, Caleb Cushing, was instructed by President Taylor to establish trading relations with China which would enable the Americans to enjoy similar rights as the British. In June, 1844, Kiying, the topranking Chinese official who ratified the Treaty of Nanking (Nanjing), came south to Wangxia to negotiate with the Americans. Under the threat to use force, Kiying hastily compromised. The Treaty of Wangxia, which declared "perfect, permanent, universal peace" between the two countries, was signed on July 3. It provided the Americans with the right to reside, to trade, and to set up consulates in the trading ports. In addition, it secured extraterritorial rights for American citizens in China.

Following the deaths of the young King of Portugal and his aged uncle, Philip II of Spain came forward to claim the Crown and successfully invade Portugal in December, 1580. The socalled Union of the Crowns meant Portugal ceased to be an independent state but was subjected to Spanish rule. All Portuguese territories, including Macau, came under Spanish influence. However, in 1640, a revolution led by the Duke of Braganca, a descendant of the Portuguese royal family and later King Joao IV of Portugal, drove the Spanish out and ended the Union of Crowns.

Throughout the period of Spanish rule, Macau still pledged allegiance to the old Royal Portuguese Crown, and as a reward, King Joao IV bestowed on the city the title: "City of the Name of God, None Other More Loyal". (See City of the Name of God).

In the face of the rapid socioeconomic development the university was established to meet the needs for higher education in Macau and the wider region of East Asia. It is a full member of the International Association of Universities. The three founding colleges were the University College, the Junior College and the Graduate College.

There is relatively little literature on Macau, especially in English. However, many early documents written in Portuguese by missionaries and early explorers have been incorporated into a few serious historical accounts. Boxer, C. R. The Great Ship from Amacon, Fidalgos in the Far East and Seventeenth Century Macau are outstanding pioneering works in the area. More recent publications are Coates, A. A Macau Narrative, Macau and the British and City of Broken Promises.

More recently the opening up of China trade, has led to a greater interest in Macau's links with the Pearl River Delta. This development coincides with the founding of the East Asia University and the Center of Macau Studies. An important interdisciplinary study is Cremer, R. D. Macau: City of Commerce and Culture. Hong Kong: UEA Press, 1987. It provides extensive treatment of historical, cultural and commercial features of the territory. Another useful volume of similar scope is the collection of papers presented at the Conference on Industrial Economy of Macau in the 1990s. Hong Kong: UEA Press, China Economic Research Center, 1990 (papers edited by Cremer, R. D.