VZCZCXRO5453
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #1510/01 1560940
ZNR UUUUU ZZH
P 050940Z JUN 07
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 1851
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RUEAEPA/HQ EPA WASHDC PRIORITY
RHMFIUU/DEPT OF ENERGY WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY

UNCLAS SECTION 01 OF 03 HONG KONG 001510 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/CM AND OES/E 
NSC FOR WILDER 
STATE PASS CEQ FOR BERGER, VAN DYKE 
EPA FOR SOWELL 
 
E.O. 12958: N/A 
TAGS: CH HK MK SENV PGOV ENRG
SUBJECT: SUSTAINABLE GROWTH: MACAU'S PRESSING NEED FOR 
ENVIRONMENTAL LEGISLATION 
 
¶1. (SBU) Summary:  As Macau's economy booms, local 
authorities confront the dual challenges of modernizing the 
territory's infrastructure, while ameliorating the adverse 
effects of this rapid development.  Macau,s air quality is 
worsening due to manufacturing in Guangdong province, 
emissions from the transportation sector and localized 
electricity production.  Macau's drinking water supply is 
almost completely dependent on tributaries of the Pearl 
River, which face problems with pollution and excessive 
salinity.  The Macau Environmental Council (EC), a government 
body charged with monitoring the condition of the 
environment, has neither regulatory nor law enforcement 
powers.  The EC only has the ability to conduct public 
awareness campaigns, investigate (but not resolve) citizen 
complaints on pollution, and provide non-binding 
environmental impact assessment opinions.  The Macau Special 
Administrative Region Government (MSARG) recognizes the need 
to restructure the EC into a formal Environmental Protection 
Department, but appears perplexed about how to go about 
creating a body with true regulatory and enforcement 
capabilities.  MSARG authorities have expressed interest in 
increasing cooperation with the U.S. and learning more about 
creating a framework for sustainable economic growth and 
environmental protection.  END SUMMARY. 
 
======================================== 
Economic Development and the Environment 
======================================== 
 
¶2. (SBU)  Air Quality:  Vong Man Hung, Acting President of 
the Executive Committee of the Environment Council, told 
EconOff that, under its current structure, the MSARG cannot 
effectively manage the explosive growth in and economic 
transformation of the territory.  This is particularly 
evident in the environmental sector, where deteriorating air 
quality is the most pressing environmental issue, yet the 
MSARG has not even measured how much pollution blows into 
Macau from mainland China and how much is produced locally. 
Local power plants continue to burn diesel fuel, while a 
small percentage of power is produced by an incinerator. 
Both spew high quantities of pollutants into the air.  Car 
and truck emissions also contribute to low air quality due to 
high use of diesel and other poor-quality fuels.  While the 
EC has instituted new standards for the import of commercial 
fuels, it lacks any means to curtail the heavy flow of 
vehicles from mainland China. 
 
¶3. (SBU) Water quality: Vong noted that with only four sewage 
treatment plants, Macau can provide secondary treatment for 
only 19% of its waste water.  The MSARG has not yet released 
water quality figures for 2006, but its 2005 Environmental 
Status Report notes that water quality around Taipa Island, 
Macau's Inner and Outer Harbors, and Coloane Island reached 
extreme levels where "water pollution endangers the existence 
of all organisms and the public health."  In the beach resort 
areas and airport, coastal water ranged from "acceptable 
quality" to "water pollution at levels that affects the 
normal growth of plants and the existence of sensitive 
organisms."  The concentration of heavy metal pollutants in 
coastal waters has already exceeded the "Seawater Quality 
Standard of China".  It remains unclear how much water 
pollution stems from local sources and how much comes from 
factories in mainland China. 
 
¶4. (SBU) Drinking Water:  98% of Macau's water supply comes 
from the Xijiang River, a tributary of the Pearl River in 
Guangdong province.  While this river also suffers from 
pollution, a recent decrease in volume and water levels in 
the rivers frequently causes seawater to flow into Macau's 
main source of drinking water.  Along with increased economic 
development, Macau's water consumption has increased by 3.4% 
since 2003 and it is certain to keep rising as more luxury 
hotels come on line.  The impact of salinity on Macau's 
drinking water continues to adversely impact human health and 
could impede the sustainable development of Macau, implied 
Vong.  For this reason, the EC has begun water conservation 
campaigns and recommends that the government incorporate 
water conservation into an overall socio-economic development 
strategy, including the use of treated wastewater for 
construction and irrigation. 
 
¶5. (SBU) Environmental Impact Assessments: Despite the number 
of new construction and land reclamation projects, there is 
no formal mechanism for the EC to provide environmental 
 
HONG KONG 00001510  002 OF 003 
 
 
impact assessments (EIA).  If another government department 
requests that the EC perform an assessment, the EC will give 
a non-binding opinion on the impact of that specific project. 
 However, the majority of construction and infrastructure 
projects in the territory proceed without any independent 
EIA. 
 
================================ 
Structure of Environment Council 
================================ 
 
¶6. (SBU)  The EC's current mission is to promote 
environmental awareness among the general population and 
within government departments.  It liaises with other MSARG 
agencies to collect data on environmental issues, but lacks 
the authority or staffing to conduct independent monitoring 
of its own.  For example, the Macau Meteorological Department 
examines air quality; the Port Authority and Health Bureau 
monitor water quality; the Civil Aviation Department 
researches airport-related pollution problems, while the 
Macau Customs Service works on animal conservation and 
trafficking.  The EC does not draft new regulations and 
cannot impose penalties on polluters.  Instead, it makes 
recommendations to other agencies on how to improve 
environmental practices and urges the above departments and 
business licensing bureaus to revoke operating permits of 
polluters.  However, the EC cannot force any department or 
bureau to take action on any environmental problem. 
 
¶7. (SBU) The EC is the single MSARG entity that is dedicated 
to the environment.  However, it is mainly an advisory body. 
Financially and administratively, the EC falls under the 
MSARG Secretary for Transportation and Public Works.  But, 
the 'General Council on the Environment,' an eleven-member 
body appointed by the Macau Chief Executive from government 
and business sectors (including construction, garment 
manufacturing, transportation, architecture and education) 
oversees the programmatic and policy aspects of the EC.  Each 
year, the General Council approves the EC,s annual work plan 
and its end-of-year environmental status report.  Given the 
General Council's membership, it remains unclear the extent 
to which the EC can formulate independent policy 
recommendations. 
 
========================== 
Current MSARG Capabilities 
========================== 
 
¶8. (SBU) The Chief Executive of Macau and the Governor of 
Guangdong have formed a Liaison Group to cooperate on water 
and air issues.  Vong claimed this arrangement facilitates 
information sharing at numerous levels of government, but did 
not elaborate on the extent of that cooperation. 
Nevertheless, it appears to be less developed than the 
contact between Hong Kong and Guangdong.  She also stated 
that Macau and Hong Kong lack an official 
government-to-government mechanism to cooperate on the 
environment, though considerable informal communication 
occurs between technical experts in both cities.  Macau still 
depends on contacts in the Portuguese civil service for 
assistance and expertise on the environment, and Macau does 
not yet have a large environmental movement, she noted. 
 
¶9. (SBU) To address deteriorating air quality, Macau will 
begin using natural gas by the end of 2007, with future plans 
to build a LNG terminal in mainland China.  Due to the high 
price of land in the territory, all new energy infrastructure 
construction, including LNG terminals and additional power 
plants, will be located in the mainland, indicating that 
Macau is tying its energy security closely to mainland China. 
 Vong noted that plans for LNG will allow Macau to gradually 
shift its electricity production to cleaner sources.  To 
address emissions from the transportation sector, Vong also 
noted that the MSARG has issued new regulations for the 
import of commercial fuels, but declined to give details on 
the sulfur content of those fuels. 
 
¶10. (SBU) A very high population density and the strong 
growth of tourism mandate that Macau monitor the state of its 
green spaces as part of an overall nature conservation 
program, said Vong.  The Lands, Public Works and Transport 
Bureau has plans to preserve existing green areas and 
increase urban greenery in new areas under development and 
reclamation.  Construction projects, particularly in the 
 
HONG KONG 00001510  003 OF 003 
 
 
Cotai reclamation area, are changing Macau's land and sea 
ecological systems, however.  The EC urges more environmental 
monitoring, protection and conservation programs to address 
the changing ecology. 
 
¶11. (SBU) For the past three years, the Macanese public has 
increased demands that the EC implement environmental 
regulations.  The public is particularly concerned about 
noise and light pollution from the construction and 
operations of the new casinos.  These quality of life issues 
have raised the profile of the EC and increased the public's 
receptivity to its general environmental message.  Macau's 
Legislative Council is considering a plan to upgrade the EC 
into an Environmental Protection Department (EPD), but there 
is neither a timetable for this government restructuring nor 
a clear indication of what powers a new EPD would hold.  Vong 
stated the EC's immediate goal is obtain regulatory powers 
and then begin drafting new environmental legislation.  She 
had no specifics on how the MSARG would go about 
strengthening environmental regulations, but welcomed 
expertise and opinions from U.S. counterparts. 
 
¶12. (SBU) The EC's existing outreach programs highlight green 
enterprises by working with the hotel sector to promote 
energy and water efficiency.  Since the hospitality industry 
is the main employer, the EC believes engaging the hotel 
sector will have ripple effects in Macanese society.  The EC 
will soon start a "green hotel" award program to recognize 
the most environmentally-friendly and energy efficient hotels 
in Macau.  Vong stated that American hotel and casino chains 
tend to be some of the "greenest" in Macau and can serve as 
models for their local competitors. 
 
================================= 
Trafficking in Endangered Species 
================================= 
 
¶13. (SBU) Vong also discussed efforts to combat animal 
trafficking, which falls under the Macau Customs Services and 
Economic Development Bureau.  Macau is a signatory to the 
Convention on International Trade in Endangered Species of 
Wild Fauna and Flora (CITES).  Each year, Macau Customs 
prosecutes animal traffickers.  It has recently seized 
orchids, cacti, coral, giant salamanders, and various tiger 
parts. 
Cunningham