Macao

Macao (Macau) A small peninsula off southern China opposite Hong Kong, which, together with the neighbouring islands of Taipa and Coloane, became a Portuguese settlement in 1557. In 1582, Portugal signed a 500-year lease over the territory. In 1887, Portugal established a permanent claim over the area, but following the overthrow of the military regime in Portugal in 1974, it reverted to its status as Chinese Territory under Portuguese Administration. Following agreement about the return of Hong Kong to Chinese rule in 1984, Macao's return to Chinese administration under similar conditions became inevitable. In 1987, the Chinese and Portuguese governments agreed that Macao would return to Chinese administration on 20 December 1999 as a Special Administrative Region, in which capitalism would be maintained. Transition to Chinese rule was never as problematic for the area as that of neighbouring Hong Kong, since the territory was much smaller (less than one-tenth in size) and much poorer (less than half the per capita income). Under Chinese rule, it obtained a relatively high degree of self-government. Under its new constitution, it was governed by a Chief Executive and a legislative council.