China’s Hu praises Macau’s progress

Jasmine Yap and Joshua Fellman

Monday, Dec. 20, 2004 | 9:18 a.m.

Chinese President Hu Jintao praised Macau's economic success, attributing it to a political system devised by China, after arriving to mark the fifth anniversary of the former Portuguese colony's return to China.

"Macau's success in the last five years offers compelling evidence our policy of 'one country, two systems' is a fundamental guarantee of Macau's sustained development and its long-term prosperity and stability," Hu said at a banquet this evening during his first trip to the city.

China is keen to showcase the success of Macau as it seeks to persuade Taiwan to embrace the "one country, two systems" formula under which Macau and Hong Kong came back to Chinese control in the late 1990s. China always has claimed the three territories as its own.

Macau's economy grew an average 8 percent in the four years since its handover. In the third quarter, the city's economy grew by 22 percent as the Chinese government eased travel restrictions and as more casinos opened in Macau. The jobless rate fell to 4.7 percent.

China hasn't been as successful with Hong Kong, which returned in July 1997. About 500,000 people marched on the last two anniversaries of its handover, calling for more democracy. The 2003 rally, triggered by proposed anti-subversion laws, surprised China and undermined Chief Executive Tung Chee-hwa.

"Macau is the successful example of reunification and Hong Kong the not-so-successful example," Michael DeGolyer, an associate professor of international studies at Hong Kong Baptist University, said before Hu's speech. "China is using Macau as an example to attract Taiwan."

Taiwan has rebuffed the "one country, two systems" policy, saying it won't surrender its democracy, which unlike Hong Kong and Macau provides for the direct election of its president and legislature.

Relations have been strained by Taiwan President Chen Shui- bian's pro-independence stance and his refusal to recognize the one-China policy, which the mainland government uses to strengthen its claim of sovereignty over the island.

Hong Kong and Macau leaders are indirectly appointed by China. Macau Chief Executive Edmund Ho will be sworn in for a second term tomorrow in ceremonies to be attended by Hu.

Macau's economic success has largely come from gambling. It's the only place in China where casino gaming is legal, an attraction that drew a record 13.7 million visitors in the first 10 months of this year.

Macau has 15 casinos, 13 of which are run by tycoon Stanley Ho. More than 20 casinos will be operating by 2007. Macau gets more than two thirds of its tax revenue from gambling, which last year accounted for 43 percent of the $8.7 billion economy.

Hu said today that Macau's economy will continue to grow because of its links with the China's mainland, where the economy will probably growth by "9 percent or higher" this year and trade will "top $1.1 trillion."

Hu also will meet Hong Kong's Tung in Macau today.