Prime Ministers Zhao Ziyang of China andAnibal Cavaco Silva of Portugal signed an agreement to end more
than four centuries of Portuguese rule over the territory of
Macao and return it to Chinese control in 1999.
    Macao will become a special administrative region on
December 20, 1999, retaining a high degree of autonomy except
in foreign affairs and defence. Its capitalist system is to
remain intact for 50 years under an arrangement similar to the
one that will return Hong Kong to China from Britain in 1997.
    China hopes to win back the Nationalist-ruled island of
Taiwan under the same "one country, two systems" formula.
    "The successful settlement of the question of Macao has
proven and will continue to prove that the concept of 'one
country, two systems' is realistic and therefore definitely
viable," Zhao said.
    Macao's population of 300,000 includes more than 40,000
Portuguese passport holders.
    Peking has said Chinese nationals in this category will be
able to use their Portuguese passports after 1999 but will not
be entitled to Portuguese consular protection in Macao or
elsewhere in China.
 REUTER
