VZCZCXRO6387
PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #0092 0141002
ZNY CCCCC ZZH
P 141002Z JAN 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 6653
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY

C O N F I D E N T I A L HONG KONG 000092 
 
SIPDIS 
 
DEPT FOR EAP/CM 
 
E.O. 12958: DECL: 01/13/2034 
TAGS: PGOV PREL HK MC CH
SUBJECT: XI JINPING VISIT TO MACAU: NO PRESENTS OR HOT TIPS 
 
Classified By: CONSUL GENERAL JOE DONOVAN for reasons 1.4 (B,D). 
 
¶1. (SBU) Summary: Xi Jinping, visiting Macau January 9-10 for 
the first time as PRC Vice President, expressed confidence 
Macau can weather the current economic downturn with the 
support of the central government and continued diligence of 
the Macau people.  His encouraging words, however, were not 
accompanied by the one measure local observers see as key to 
help boost Macau's economy: easing travel restrictions on 
mainland Chinese visiting Macau. The travel curbs introduced 
late last summer have resulted in slowing growth for the 
city's casinos.  Instead, Xi on several occasions urged Macau 
to diversify its economy beyond reliance on the gaming 
industry to achieve long-term sustainable growth.  Xi also 
failed to signal which of the four "undeclared" candidates 
Beijing prefers to succeed current Chief Executive Edmund Ho 
in December.  End summary. 
 
¶2. (SBU) China's Vice-President Xi Jinping made a two-day 
inspection tour of the Macau Special Administrative Region 
January 9-10.  Visiting for the first time since becoming 
Vice President in March 2008, Xi insisted Macau will continue 
to enjoy the full support of the central government to help 
it achieve diversified, sustainable development and enhance 
its cooperation with neighboring Guangdong province.  To 
emphasize this point, Xi promised Macau a role in its plans 
for nearby Hengqin Island (administratively part of the 
mainland city of Zhuhai, but less than two hundred meters 
from Macau), which the central government recently approved 
for development.  (Note: Macau, with 557,000 residents 
squeezed into 11 square miles of land, has long been eyeing 
Hengqin as a solution to its population problem.  End note.) 
 
¶3. (C) Although relaxation of travel restrictions on 
mainlanders' visits to Macau had been widely viewed as the 
most important step the central government could take to 
raise Macau's economic fortunes, Xi was silent on this issue. 
 These restrictions, imposed late last summer to cool Macau's 
overheating economy and curb the risk of mainland officials 
and managers gambling absconded funds, have caused casino 
revenue growth to slow in recent months.  Given the central 
government's recent announcement it would work with Hong Kong 
to expand travel by mainland tourists, this move was a clear 
signal Beijing is still not fully ready to reopen the doors 
to Macau for mainland Chinese visitors. 
 
¶4. (SBU) Also contrary to wide expectations, Xi did not 
signal Beijing's preference for any of the four "undeclared" 
candidates to become Macau's next Chief Executive (CE) when 
current CE Edmund Ho steps down in December.  Xi met all four 
candidates but did not by word or gesture indicate a 
favorite.  The four widely-accepted contenders are Secretary 
for Social and Cultural Affairs Fernando Chui, Secretary for 
Economy and Finance Francis Tam, Executive Councilor and 
businessman Ho Iat Seng, and Prosecutor General Ho Chio-meng. 
 Local media reported Xi steadfastly refused to answer 
questions about the upcoming CE election.  CE Ho is expected 
to announce later this month the date for the election of the 
300-member Election Committee that will in turn choose the 
next CE. 
DONOVAN