MACAO, a Portuguese colony on the coast of South China, on the west side of the entrance to the Canton river, opposite to and some 35 miles distant from Hongkong island. It comprises the peninsula of Macao and the small islands of Taipa and Coloane : the area of the whole colony being about eleven square miles. On the peninsula, which is about three miles long and a mile broad, is situated the picturesque city of Macao, extending up a hill-side to overlook a fine bay. Its multi-coloured buildings reveal a quaint combination of Oriental and European features. The mean monthly temperature reaches 84° F in July, but in no month falls below 6o° F. During the south-west summer mon soon there is a fall of more than 6o inches of rain, but this tropi cal climate is relieved by south-west sea breezes which make Macao a favourite pleasure resort.
Direct trade by sea between Europe and China began through Portuguese enterprise as early as 1516. Macao was established in 1557 and is the oldest European outpost in the trade with China. It was an early centre of Jesuit missionary activity and in 158o the bishopric of Macao, which includes also Timor (East Indies) and the Christians of Malacca and Singapore, was created; in 168o the first governor was appointed, but the Portuguese remained largely under the control of the Chinese with whom there were constant disputes concerning the extent of Portuguese jurisdiction. A rental was paid for the peninsula until 1849, when the Portuguese abolished the Chinese customs house and declared the independence of the port. It was not however, until 1887 that China formally recognized Portuguese sovereign rights in a treaty whereby China confirmed the perpetual occupation and government of Macao and its dependencies by Portugal, which in turn undertook never to alienate Macao and its dependencies without the consent of China, and to co-operate in the work of the opium revenue at Macao on the same lines as Great Britain. at Hongkong. This did not put an end to disputes, and the de limitation of the colonial boundaries is still an unsettled question. During the 18th century Macao was the chief centre in the Sino-European trade, but the rapid development of Hongkong (ceded to Great Britain in 1842) was responsible for its decline, as also was the rapid silting of Macao harbour. Its local trade, which has throughout retained some degree of importance is now increasing, and Macao (a free port) serves as a local distributing centre ; its chief legitimate trade commodities are rice, lumber, silk, tea, piece-goods, fish and oil; but the port has had an un enviable reputation for opium smuggling. According to the Lappa
Customs report, 1925 was a record year, while the trade for 1926 was estimated to reach $6o,000,000. Practically all Portugal's trade with China is conducted through Macao, but it is rela tively very small. One of the most important aspects of the economic life of Macao is its fishing industry which employs about i800 junks and 40,000 men and women. The annual export of fish to neighbouring towns of the Canton delta, averages over $3,000,000. The great bulk of the fish exported is salted, and Macao's position as the second fish-port in China is in large measure due to the imports of foreign salt, which is much cheaper than Chinese government-taxed salt. The chief manufactures are those of cement, preserves, fire-crackers, vegetable oil, and also metal working. The first Macao Industrial Fair was held in 1926. In 1920 a definite scheme for harbour improvement was launched and a contract placed with the Netherlands Harbour Works. The construction of an artificial deep-water harbour began in 1923; and this entailed the dredging of a four-mile chan nel to the open sea. These harbour works were completed in 5926, having cost $io,000,000, and have led to the reclamation of 13o acres of land surface. The new harbour is enclosed by four miles of breakwater and is already used by vessels drawing as much as 22 feet.
The population, which is mainly engaged in mercantile ac tivities, according to the census of December 31st, 192o numbered 83,894, of whom 3,816 were Portuguese (chiefly officials and soldiers). The enumeration of 1927 found 157,175.
The native inhabitants of Macao—the so-called Macanese— are of mixed descent. Originally i,000 Portuguese families set tled there, but long intermarriage has led to the dominance of Chinese blood. The revenue of the colony is derived mainly from ground rents, industrial taxes, gambling and opium monopolies and for 1927-28 was estimated to yield $5,200,000 against an expendi ture estimated at The city itself is not strongly de fended; it comprises a Chinese and a non-Chinese ward, each having a separate administrator. For a mile and a half along the east side of the peninsula runs the famous Praia Grande, where stand the Governor's palace and chief commercial buildings.