MDTimes talks with two former Macau governors

Macau received a most unusual visit this past week, unusual due to the nature of the visit.  Two former Macau governors – General Garcia Leandro (1974-1979) and Engineer Carlos Melancia (1987-1990) – were invited to visit by MSAR’s Chief Executive.
General Leandro returned 30 years after having led the Macau administration and Eng Melancia 20 years on.  It’s a very uncommon event. As Carlos Melancia put it with his great sense of humour, uncommon not only due to the fact that two former governors visited at the same time but also because ‘following life’s rules Macau governors belong to a highly endangered species’.
Both experienced special periods during their respective governorships. Garcia Leandro had come a few months after ‘the Carnations Revolution’ (25 April 1974) celebrated yesterday by the Portuguese, that re-established a democratic regime in Portugal. He kicked off in Macau what he designated as the ‘post-colonial regime.’
Carlos Melancia was at the helm in 1987 of the administration at the start of the 12-year ‘Transition Period’ to the handover of Macau, following the signing of the Joint Declaration between Beijing and Lisbon, in 13 April that year.
Macau Daily Times met the two former governors in an almost informal lunch, during which many subjects were discussed though only a part of the conversation is published in this exclusive interview due to the lack of space available.
During the more than two-and-a-half hour conversation, we took note of their opinions on Macau in 2011, the reasons that led to the maintenance of the monopoly in the gaming industry during the Portuguese administration; infrastructural equipment left for the MSAR; the interests of Macau concerning the expansion to Lapa island and also Montanha and D.João Islands (Hengqin). Also debated was the status of Portuguese presence in Macau and some comments regarding some expressed criticism of the legacy left by the former Portuguese administration in Macau.

Carlos Melancia:

‘…Never was the opportunity of opening of the monopoly gaming regarded as ‘wanted’ by the People’s Republic of China’
•
‘During the four-hour long meeting [with Li Peng], Zhuhai airport, as well as Shenzhen’s airport were right away classified, in a phone conversation held directly in my presence, as officially regional airports. Macau would have an international airport’

Macau Daily Times – Following your intensive schedule during your visit ten years after the handover what impressions of Macau will you return with?

Engineer Carlos Melancia – I came to Macau right after the start of the transition period [towards the handover] and stayed here for nearly three years and three months, when what was aimed at concerning the future of Macau had been already projected mainly under the auspices of both governments: the government of the People’s Republic of China and the Portuguese government.
Something that had not happened before with previous governors.
There was already a kind of operational roadmap set by objectives and one of the options that concerned me dealt with the establishment of a potential autonomy [for Macau]. This is the starting point for the reasoning behind my assessment of what I see today.
My reckoning in objective terms is that the [last] 10 years correspond to a boom in the territory’s activity centered practically only on gaming. And the first thing that I am led to stress is that, – although without enough data to back me up in saying with certainty –  if left without other complements, this dimension solely based on gaming is fragile. And that perspective seems to me bound to cause concern. I do not feel that in formal terms an alternate solution is being set in the slightest scale.
The announcement of the University campus at Hengqin Island and the Macau-Hong Kong-Zhuhai bridge, coupled with this boom in gaming and construction sectors, are hints that something is about to happen before 2049, the date that I believed to be when the situation [in Macau] and of what had been programmed would be reassessed as scheduled. At this pace I do not believe that [Macau’s] autonomy, such as it was envisaged in the Joint Declaration, and notwithstanding the PRC’s compromise as regards the matter, is going to remain until 2049.

Garcia Leandro:

‘There are very good things […] and there are also new challenges that imply having to find solutions for newer problems that did not exist before’
•
‘There was even one company […] referring to [Carlos] Assumpção, Bulhosa [Manuel Bulhosa, a well-known Portuguese entrepreneur] and Chou [former chairman of the Legislative Assembly Susana Chou’s father]’ with interest in the gaming tender…

General Garcia Leandro – In the last 10 years the big decision to open up the gaming industry [launched] a new phase which is not only political but also economic having brought large investments to Macau, but it also created this situation of excessive dependency on gaming. But a new phase is about to come. Independently of what is written on paper, a management is to be made in a worldwide scale of ever-growing geographical and populated areas. It will not be a problem that only affects Macau. When I was here [as governor] and looked at Hengqin and Lappa Islands they were mostly deserted; and in Hong Kong looking at the New Territories, there was also nothing there. Now both are highly developed zones. Even [Mainland] China has lost control of its inner migrations and now we can witness this amazing development on the other side.

It is obvious that from the viewpoint of a unified State, the central power has to have an integrated view of development and thus it has to have another kind of thought towards the evolution of this whole geographical area where Macau is located, in cooperation with all neighbouring zones. That detail of the University of Macau and the projects that Beijing may have for that University, as a hub that could serve southern China, is already integrated in a more globalized vision.
Thus, the assessment is quite positive. There are very good things. What happens though is that many of the very good things are linked to a great financial capability and there are also new challenges that imply having to find solutions for newer problems that did not exist before.

Important compensations behind the gaming monopoly

MDTimes – What were the reasons and concerns behind the option of having a Gaming monopoly during the Portuguese administration in Macau?

C.M. – What concerned me was that gaming was already part of an agreement that included the maintenance of exclusivity and never was the opportunity of opening of the monopoly regarded as ‘wanted’ by the People’s Republic of China. China could put an end to gaming in Macau in just 24 hours and have it operating elsewhere.
I always thought that gaming was an important tool in Macau’s economic activity and development. In my analysis, eventually excessive, I do not mean that gaming is not important for the character of Macau. Macau can benefit and should benefit from gaming.
It is obvious that up to a certain point, all structural changes had to be done in harmony with the People’s Republic of China, within the framework of the Joint Declaration.
We could only surf on a wave that belonged to the People’s Republic of China...

‘I do not believe that [Macau’s] autonomy will remain until 2049’: Carlos Melancia

In global terms the compensation for keeping the monopoly were based on the willingness of the tender holder to extend special resources to fund projects that would have special importance to Macau’s development. In that sense, STDM [Sociedade de Turismo e Diversões de Macau] never hesitated to subscribe 25 percent of the capital needed for the airport, or to build a golf camp in Coloane, or the electricity power generator, and the central refuse treatment.

G.L. – I did admit the possibility of opening up gaming during dealings with STDM that were far from easy. But then I thought that pending an imminent end of the contract in 1986, new conditions could then be set for opening up gaming to new tenders.
That would mean preventing a fragile situation such as the one the government met in 1961, when governor Jaime Silvério Marques adjudicated the gaming exploration against the Fu [tycoon Fu Tak Iam] family.
The company, registered in 1962 under the name Sociedade de Turismo e Diversões de Macau [STDM] included Macau and Hong Kong businessmen, namely Ip Hon, Teddy Yip Tak Lei, Stanley Ho Hung Sun and Henry Fok.
My reasoning was that there should be more hotels, other travel agencies and other transportation companies. I thought a lot about what conditions could be created for the governor that would be here in 1986. I set about creating that environment up to the point that the company itself [STDM] became suspicious. Not that I was readying adjudication, but I did want to build suspense in order to set up better terms. [It would be better] even for that company as it would be aware that it was a looming possibility. There was the possibility of entertaining three concessions: one in Macau, one in Taipa and another in Coloane.
That project was feasible because I did not have the limitations that engineer Carlos Melancia and General Rocha Vieira encountered, as they were dealing in an already settled framework.

 ‘I did mention the possibility of opening up gaming’: Garcia Leandro

There was a reason – and for me a matter of great concern – behind keeping the monopoly: a matter of security. Not a very serious matter during my governorship but in the 1990’s it posed huge problems. The existence of triads lurking around the gaming [industry] led to the fact that with only one tender, the situation would be more calm, as the company would deal with it using means that were not at our reach.
Having three companies would see problems arise.
There was even one company, which I dubbed ‘ABC’ referring to Assumpção, Bulhosa [Manuel Bulhosa, a well-known Portuguese entrepreneur] and Chou [former chairman of the Legislative Assembly Susana Chou’s father]. On the other side was Mr Ip Hon, who did not get along well with them and who presented a separate proposal when the 1976 revision of the contract was due.
Experience showed that monopoly was the solution that offered more tranquility in terms of stability and security.

New infrastructures
To serve autonom

MDTimes – Which were the decisions and projects most structuring for Macau’s development during your respective Administrations?

C.M. – Within the framework of the Joint Declaration a time-schedule was defined to ensure autonomy, and the way it was equated within only twelve years was innovative in terms of experience worldwide. It was also a challenge, which ought to be met as considering the local dimension; not doing would be ‘fatal’.
The first great challenge – that was ultimately successful – was to build Ka Ho port in order to allow larger ships in. Another was the negotiations concerning the airport, as Macau did not possess territorial waters or air space, or borders, and the aim was to move forward towards a situation of autonomy.
Yet another was the launching of the University of Macau, or rather to modernize what was already there so as to eventually make the most of an asset that seemed fundamental: the rule of Law of Portuguese matrix was maintained and it was crucial to expand the teaching of the Portuguese language. It was not possible, under that legislative framework, to be a magistrate or a lawyer in this territory without knowledge of Portuguese.

Garcia Leandro:
‘There are very good things […] and there are also new challenges that imply having to find solutions for newer problems that did not exist before’
•
‘There was even one company […] referring to [Carlos] Assumpção, Bulhosa [Manuel Bulhosa, a well-known Portuguese entrepreneur] and Chou [former chairman of the Legislative Assembly Susana Chou’s father]’ with interest in the gaming tender…

It was always my conviction that the first three or four years of the transition period were when things could still be accomplished. After that there would no longer be enough time to get things done, or to negotiate anything else.  The example of the airport [Macau International Airport] is paradigmatic.
I had no illusions whatsoever that although Kai Tak airport had become saturated, in practical terms there were two other airports with potential to become international airports: one in Zhuhai and another in Shenzhen.
To build an airport in Macau – and it was more or less programmed that [its] autonomy in transport was vital – there were changes to be made through official channels.  In this regard I would venture relating it with the Tiananmen incidents. It might seem at first that no relation could be made between the two, but the fact is that I had an appointment with [Chinese] prime minister Li Peng to deal with the problem of the airport – an appointment scheduled one month earlier, with no idea whatsoever that the Tiananmen incidents would occur.
Truth is the Tiananmen incidents had occurred eight days before I left for Beijing, and they were violently slashed in the Portuguese newspapers. Now, from what I always gathered and following what was set in my mandate [as a Governor] in a statute completely different from the previous one, if there was someone who could wage a protest or assume a position about Tiananmen it was the Government of Portugal. It was surely not the governor of Macau, designated in consensual terms by both countries, who could take a leading role in criticising anything as regards to the matter.
As is usual in the East, nothing is done without asking in advance. So off I went to Lisbon to meet the President [of the Portuguese Republic] and the Prime Minister and it was decided that my trip to Beijing would not be changed.
During the four-hour long meeting, Zhuhai airport, as well as Shenzhen’s airport were right away classified, in a phone conversation held directly in my presence, as officially regional airports. Macau would have an international airport. The [Hong Kong] Kai Tak airport was saturated, but there was no project then for its expansion or for the construction of a new airport in Hong Kong.
Unfortunately, as TAP [Portugal’s flagship airline] were not able to continue the Lisbon-Macau air route, I believe we missed yet another chance as one of the projects that were also envisaged was to have a centre of aircraft engine maintenance, similar to the one at Lisbon airport, established in Macau [airport].
Regarding the University level education system there was another challenge concerning the formation of cadres, as we were routinely criticised by the Joint Liaison Group who was worried that we would not have sufficient time left to minimally complete that task.
Throughout the 12 years of the transition period I believe up to 70 percent of results were achieved, and that can be deemed reasonably satisfactory.

G.L. – I feel that the Macau Organic Law [Estatuto Orgânico de Macau – EOM] is included in the three great structuring matters.  When we visited [now] the Legislative Assembly, its chairman clearly told us that the Basic Law is not much different from the 1976 Organic Law. The process of having local population involved with the powers, in the legislative area as well as in the executive area was important. Another matter was the decision to withdraw the armed forces, a symbol of sovereignty and as such always a source of problems, and of some tensions throughout our history. They also really had not a lot to do here. Our problem was not with foreign threats, but with domestic security. The third matter that seems to me very important was the banking [system] and currency. Structuring a process that I launched at the beginning, and later followed up, rectified and improved under [governor] Almeida e Costa. In my view, those were the most important matters [then launched] and whose consequences are still felt today.

PROFILE

• Garcia Leandro, holding the rank of Lieutenant-general has served in the highest military positions in Portugal having also led international military missions abroad, at the service of the UN, NATO and European Union.
Among the many military institutions in Portugal, he has led the Instituto de Altos Estudos Militares (High Military Studies Institute) and delivered conferences in Portugal and abroad about Strategies, International Relations, Crises management, Collective Security Systems and also Peace Support Missions.
After taking an active role as a lecturer in the field of Security and Defense affairs, Garcia Leandro currently lectures at the Universidade Católica in Lisbon and also collaborates with other academic institutions. He was the president of the Observatory for Security, Organised Crime and Terrorism in Portugal and is a president and member of the board of several foundations and associations.
Appointed to be the first Governor of Macau following the democratic Revolution in Portugal in 1974, Garcia Leandro arrived to rule the then Portuguese-administered territory later that year up until February 1, 1979.
It was during his administration in 1976 that the Macau Organic Law ‘Estatuto Orgânico de Macau – EOM’ was adopted which led to the setting up of the Macau Legislative Assembly.
In his recent book ‘Macau nos Anos da Revolução Portuguesa, 1974-1979’ (Macau during the years of the Portuguese Revolution, 1974-1979), Garcia Leandro recalls his governorship in Macau, the issues he faced and his method to overcome them and to succeed in his mission in troubled time, the aftermath of the Revolution in Portugal.

Education at a higher level was also among my concerns, mainly regarding local Chinese students, and in early 1979 my government signed a contract with the Hong Kong Matteo Ricci group of schools for the establishment of the University of Macau, then known as Universidade da Asia Oriental. Phase one was launched for schooling term 1981/1982 and Governor Melo Egidio was already in Macau. The process is well explained in the book I recently published. But ensuing problems that surrounded the management of the University, as it was privileging students coming from Hong Kong, and also the fact that the government financial capabilities had improved, led the Government of Eng. Carlos Melancia to acquire the University in the late 1980’s and duly change its name to the University of Macau (UM).

The UM itself considers 1981 as its foundation date and is celebrating its 30th anniversary this current year.
So, three really structuring marks: banking and currency, security forces and the Organic Law, but we should not forget Higher Education.

A Korean petrochemical plant at Hengqin island

MDTimes – Considering years gone by, do you feel that something important was left incomplete during your governments?

C.M.– I can think of one example... One of the things that I felt was desirable but not clearly included in the Joint Declaration, and which depended on a deliberation of China out of the scope of the Joint Declaration, was the integration of the islands of Lapa [Wanchai], and D. João and Montanha [Hengqin] within Macau’s ‘area’.
Those islands had been formerly under the territory’s administration until World War II. The Japanese occupied those islands then, but Macau did not administer those territories following WWII.
There was a historical logic there for having MSAR to envelope these islands, with the advantage that Macau would gain a different dimension from what it had only with Taipa and Coloane. It was not possible to reach that goal.

MDTimes – But was the subject ever formally proposed?

C.M. – It was, by me. But I presented it quite sensibly, in a framework based on the reasoning that history weighs a lot on decision making, and aiming at creating a real autonomy. Fortunately, I see that things are now evolving that way. But it is a shame that it will happen only after 2049 and not before, and in a completely diverse regime, since the campus will be built under a land rental contract and not under the scope of integration in the Macau SAR, as it was planned. That was exactly what, in my case [as a governor] did not turn out so well.

MDTimes – And what led you into believing that such an ambitious project would be possible?

C.M. – I was expecting, in a way, that it would be feasible. During one of my meetings with the Chinese prime minister, Li Peng mentioned a certain Korean group wanting to establish a petrochemical plant in Macau.
Obviously in Macau it wouldn’t be possible as many hectares are required to establish a petrochemical plant, since the building density is very high.

Garcia Leandro:

‘When we visited [now] the Legislative Assembly, its chairman clearly told us that the Basic Law is not much different from the 1976 Organic Law’
•
‘In early 1979 my government signed a contract with the Hong Kong Matteo Ricci group of schools for the establishment of the University of Macau, then known as Universidade da Asia Oriental…’
•
‘Another advantage would be for us [Portuguese] to have conditions to be China’s strategic partners in Africa, but again it is also linked with our capabilities’

To my surprise, prime minister Li Peng told me he would be sending the Korean group to meet me to see if I could eventually do something. A further surprise was that the petrochemical group did come to meet me. And they brought along a map with localisation already pinpointed. And the location was ... Lapa Island. Under the circumstances, I was left to entertain some expectations ...
No one turned me down, but I was not given a yes either ... Somehow, there ought to be some reason why the project was located at Lapa Island.

PROFILE

• Engineer Carlos Melancia held various political posts in Portugal; Secretary for Industry, Minister for Industry and Technology and also Minister for Sea and Minister for Social Equipment, ahead of being appointed the Governor of Macau in July 1987, in the period following the signing of the Joint Declaration that would determine the transition period for the handover.

As a governor, Melancia was credited with implementing Macau’s infrastructural projects that still serve the MSAR (such as the Macau International Airport, the Ka Ho port and the establishment of the University of Macau), and he was also active in the development of areas related to welfare and social security.

While making a prediction of Macau’s future, the former governor Melancia on several occasions stated publicly the importance of Lapa, D. João and Hengqin Islands being used as a support for the sustainable development of Macau. Carlos Melancia departed Macau on 27 October 1990, having returned to his activity as a businessman and entrepreneur.
He is currently the president of the Jorge Álvares Foundation.

G.L.– In my case, I do not feel something was left undone considering the conditions I met during the years I was here. Another item that wasn’t properly completed among the things I wanted to achieve, were the tax reforms that I started and were maintained. But it would involve a structural organisation and required time.
I did not finish the issuing bank and currency process and it was later concluded during Governor Almeida e Costa’s mandate, by his Secretary for Economy [João] Costa Pinto. The Public Administration Reform too, that was difficult to implement as we did not have the financial means to do it.  It was completed later during Almeida e Costa’s administration and the reform continued until 1999, as it was highly inadequate to create a rupture in the existing system and hire new people that had no knowledge of Macau.
Anyhow I do not feel that I could have done more or that something was left undone, considering the situation I encountered. Even with regard to diplomatic relations with the People’s Republic of China, it was only established as I was leaving.
There was a wish expressed by the local population [for me to stay on] and a delegation of Chinese representatives of Macau was sent to Lisbon in November 1978 with that request, as they feared there would be some interruption in the ongoing process. [They went] even though I had warned them it would not be worthwhile as I had previously agreed with the President of the Republic [of Portugal] that I would stay here only four years.
Many projects and investments were yet to be concluded and they feared a complete change of the administration would result in bad consequences or even delay that effort. But I really feel that I could have done nothing more.

Heritage safeguarding portuguese interests

MDTimes – From what you could observe in Macau, do you feel the Portuguese interests are well safeguarded?

C.M.– Firstly, it is evident from the People’s Republic of China’s efforts with a permanent office of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking countries in Macau, and meetings already held here which are closely linked, that PRC’s nurtures the interests towards markets in Angola, Brasil and other lusophone countries in Africa.
This, indirectly, not only benefits the Portuguese language, as it could also help raise on our part, a potential for what eventually is our knowhow about our past in those regions, which no longer corresponds to what it was, as it’s dispersed and no longer exists in practical terms. The People’s Republic of China is aware that we have an experience based in history and local knowledge that can help its penetration there.
In the same line, I consider China’s decision to propose to UNESCO the listing of [Macau’s] historical buildings with Portuguese architecture as important. There is no doubt about it as does China [too] has an immense heritage still to be listed, although a great part of it is listed.
After China’s decision, that heritage has become what characterises Macau, mainly in how it differentiates from other [Chinese] cities. In practical terms, it is the Portuguese local heritage that marks the difference and that is positive for the preservation of Portuguese interests.

G.L. – I believe that Portuguese interests in the East were never truly well safeguarded in terms of economic capability. Bringing Portuguese companies here to help them build partnerships also did not yield big results. Our companies have great limitations that allow them to reach Europe, the United States and Africa.
What we do keep is a strong influence in historical terms and as a consequence of our presence worldwide. I feel that China has a better grasp of the importance of the CPLP [Comunidade dos Países de Língua Portuguesa, the Portuguese-speaking countries community] than we do. China is giving a new boost to the CPLP, there is a Macau Forum for Economic and Trade Cooperation between China and Portuguese-speaking countries, and also a series of activities in the fields of sports, economy, culture or university linked that is related to the Lusophone world in Macau. I feel that we, directly, have not been able to safeguard [that] as much as we should but there appears to be a coinciding of interests now.

Carlos Melancia:

‘There was a historical logic there for having MSAR to envelope these islands of Lapa, D. João and Montanha [Hengqin], with the advantage that Macau would gain a different dimension’
•
‘During one of my meetings with the Chinese prime minister, Li Peng mentioned a certain Korean group wanting to establish a petrochemical plant in Macau […] the project was located at Lapa Island…’
•
‘In practical terms, it is the Portuguese local heritage that marks the difference and that is positive for the preservation of Portuguese interests’

China’s interest as regards world expansion also through the Portuguese-speaking countries leads it to give importance to Macau and in that scope we are to benefit.
The advantage of being able to influence the Portuguese-speaking countries through Macau also serves its interests.
Yet another advantage would be for us to have conditions to be China’s strategic partners in Africa, but again it is also linked with our capabilities. Our two strong strategic partners, aside from the European Union, are the United States and China, though for different reasons and with different types of relationships. Here, with China there is a rare convergence of interests that we should not waste if having a sense of vision and the capability to build that structure.

Land fund delivered untouched at handover’s

MDTimes – Some lawmakers and even members of the Government have pointed out problems as a legacy of the previous former Administrations. Is it a fair criticism?

G.L. – Brazilians have been independent since 1822 and they keep saying that some problems are still rooted in their colonial times, almost two hundred years on.
That kind of criticism does not seem very important to me.
The matter of delays in the courts for instance, also happens in Portugal. Truth is, the legislation adopted after 1976 was all done [also] with the Chinese, starting from 9th of August, 1976, the opening day of the Legislative Assembly. So they also have a responsibility in that.

C.M. – In regards to that, it might be useful to keep in mind that it is more positive and safe that orientation lines that interest Macau are rather those set in Beijing than the ones set in Macau.
I am more hopeful regarding a long-term perspective set by Beijing than another led by some of the local politicians. But that is not new ...
Just a few days ago, while at the Legislative Assembly, I recalled a fact that seems to me quite important. As is known, Land Fund was created along with the Joint Liaison Group, and tasked with the mission of turning into capital everything linked to the sale of land plots, from the adoption of the Joint Declaration. There was a concern towards setting up a fund, at the end of the 12 year transition period, which would help ensure the financial capability to continue with the development of Macau.
That fund was left untouched until the end, and all financial efforts made building the infrastructures needed to safeguard the autonomy of Macau were done without touching a single cent of the Land Fund. It turned out that China’s fears and concerns creating the Fund were unfounded after all.