Macau

Former Portuguese possession on the south coast of China, about 65 km/40 mi west of Hong Kong, from which it is separated by the estuary of the Pearl River; it consists of a peninsula and the islands of Taipa and Colôane; area 17 sq km/7 sq mi; population (1999 est) 437,300. The capital is Macau, on the peninsula. On 31 December 1999 Portugese rule ended and Macau was reintegrated into China, though, like Hong Kong, with a guarantee of 50 years' non-interference in its political system. Trade is the mainstay of the economy: Macau is a free port and exports include textiles, clothing, fireworks, toys, and electronic goods. Tourism is also important, with many visitors attracted to Macau's numerous casinos, and travelling via the regular hydrofoil services from Hong Kong. The peninsula is linked to Taipa by a bridge and to Colôane by a causeway, both 2 km/1 mi long. The official language is Portuguese, with Cantonese also spoken. The religion in the region is Buddhist, with a small Catholic minority.

History
Macau was first established as a Portuguese trading and missionary post in the Far East 1537,

and was leased from China 1557. It was annexed 1849 and recognized as a Portuguese colony by the Chinese government in a treaty 1887. The port declined in prosperity during the late 19th and early 20th centuries, as its harbour silted up and international trade was diverted to Hong Kong and the new treaty ports. The colony thus concentrated instead on local ‘country trade’ and became a centre for gambling and, later, tourism.

In 1951 Macau became an overseas province of Portugal, sending an elected representative to the Lisbon parliament. After the Portuguese revolution in 1974, it became a ‘special territory’ and was granted considerable autonomy under a governor appointed by the Portuguese president.

In 1986 negotiations opened between the Portuguese and the Chinese governments over the question of the return of Macau's sovereignty under ‘one country, two systems’ terms similar to those agreed by China and the UK for Hong Kong. These negotiations were concluded in April 1987 by the signing of the Macau Pact, under which Portugal agreed to hand over sovereignty to the People's Republic in December 1999, and China agreed in return to guarantee to maintain the port's capitalist economic and social system for at least 50 years.

In May 1990 administrative, economic, and financial autonomy was secured from Portugal; this followed the approval of a new ‘organic statute’ for the territory by both Portugal's parliament and Macau's legislative assembly.