CONSUL GENERAL'S FAREWELL CALL ON MACAU SECRETARY

C O N F I D E N T I A L HONG KONG 001282

SIPDIS

E.O. 12958: DECL: 07/14/2014
TAGS: PGOV PREL ECON EINV CH HK MC
SUBJECT: CONSUL GENERAL'S FAREWELL CALL ON MACAU SECRETARY
FOR ADMINISTRATION AND JUSTICE FLORINDA CHAN

Classified By: CONSUL GENERAL JOE DONOVAN FOR REASONS 1.4(B) AND (D).


1. (C) In his farewell call on Macau Secretary for
Administration and Justice Florinda Chan on July 13, the
Consul General expressed appreciation for Secretary Chan's
hard work in strengthening U.S.-Macau ties in areas such as
trafficking in persons and law enforcement. The CG
congratulated the Macau Special Administrative Region
Government (MSARG) for the dramatic economic progress over
the past several years. Asked about her future plans
following conclusion of Chief Executive Edmund Ho's second
and final term of office this December, Chan said there were
two possible paths: she could continue in government if the
new Chief Executive (almost certainly Fernando Chui)
requested her to do so, or retire. Chan noted she has been
in government for more than 36 years. Over the final months
of the Ho administration, Chan said she wanted to work hard
to ensure the CE closes the door of his ten years in office
with a "golden key." She expressed great appreciation for
Ho's decision ten years ago to move her to a high position
after being a "simple civil servant."


2. (C). Asked to comment on Macau's biggest challenges, Chan
singled out the MSAR's need to weather the global economic
downturn and keep Macanese unemployment -- currently around
3.5 percent -- in check. It has done this primarily through
encouraging layoffs of foreign workers. About 20 percent of
the foreign workforce has been let go over the past year. In
response to the CG's observation that some foreign companies
had expressed concerns over the dismissal of foreign workers,
Chan defended the government's policy of putting the
interests of Macau's residents first. As a small economy
highly dependent on the gaming sector, Macau depends heavily
on tourism, Chan said, and must work with other regional
economies, like Hong Kong to "help each other" in a region of
growing economic interdependence. Asked if she felt Beijing
might relax its restrictive visa policy to permit mainlanders
to travel more easily to Macau, Chan offered only that
"Beijing has to look at other factors." Another challenge,
said Chan, is to make sure Macau's civil service grooms the
next generation to carry out the one country, two systems
framework of governance. The MSARG cannot rely on importing
people to do this, she said.


3. (C) In concluding remarks, Chan expressed appreciation for
U.S. assistance to Macau that has led to strong
anti-trafficking in persons legislation,
anti-money-laundering policies and increased
counter-terrorism cooperation. The CG echoed the importance
Chan attached to law enforcement cooperation and said it was
important to have strong rule of law in Macau. He said the
U.S. looked forward to seeing Macau develop as a major
tourism and gaming hub for the region. Chan reiterated the
importance of foreign investment to Macau's economic growth
and expressed the MSARG's deep appreciation for the role of
U.S. investment.
DONOVAN