Text: Consul General Klosson Remarks on Future U.S.-Macau Relations
(Copyright piracy, illegal transshipments remain problems)U.S. Consul General to Hong Kong Michael Klosson, speaking at the World Trade Center in Macau March 31 about the future of U.S.-Macau relations, said the United States is eager to promote opportunities for American trade and investment in the special administrative region but problems with copyright piracy and illegal transshipping could threaten such efforts.
"Just as we seek to promote expanded business ties between Macau and the United States, there are [these] two areas of concern which, if not tackled strongly, will cast shadows over those prospects," Klosson warned.
"The establishment of the Macau Special Administrative Region opens an opportunity to write a new chapter in efforts to stop illegal textile transshipments and intellectual property piracy," he suggested.
Klosson praised the Macau authorities for such positive recent developments as the passage of a new copyright law providing criminal penalties for piracy, the prosecution of retailers of pirated CDs, a new Source Identifier Code requirement, and tighter controls on raw materials used to produce audio and video discs.
"Unfortunately, walking through some shopping areas in Macau, one sees that piracy remains a major problem.... The battle must be intensified," Klosson said.
He explained that "strong protections, including a serious and sustained enforcement effort, are essential to Macau's efforts to attract foreign investment and to develop high technology industry and services."
Klosson noted that the United States currently purchases 48 percent of Macau's textile and garment exports, and warned that "illegal transshipments [from third countries] damage Macau's legitimate manufacturing enterprises and take jobs away from Macau."
"We seek to initiate with the Macau government a new era of cooperation that will stop these illegal activities that harm legitimate industry on both sides of the Pacific and tarnish Macau's international reputation," he added.
Following is the text of Klosson's remarks, as prepared for delivery:
(begin text)
The U.S. and Macau: Looking Toward the Future
Remarks by Consul General Michael Klosson
as prepared for delivery at the
World Trade Center Macau
March 31, 2000Thank you Dr. Leca. It's a pleasure to be here in the beautiful World Trade Center, an important symbol of Macau's enduring international character and role. I am also delighted to participate in the first "American Day in Macau" since the handover, an event that expresses America's interest in Macau's future.
I'd also like to express appreciation for the assistance we received from the Executive Directors and staff of the World Trade Center in organizing our activities in Macau this week.
I was very interested to hear Dr. Leca's comments on the first American mission in Macau. Some of my Consulate colleagues wish our office had never moved from Macau, since they like the food and wine here so much! Others feel as though it never did because they are in Macau so regularly.
That is the theme of my remarks today: the United States will remain engaged with the Macau Special Administrative Region, its government and people. We seek to build on our excellent relations with the new Government of Macau, to expand bilateral cooperation, and to promote opportunities for U.S. trade and investment. In that fashion, we will do what we can to support Macau's unique character and prosperity under the "One Country, Two Systems" arrangement.
That is the message behind this "American Day in Macau." Its activities - the catalogue show organized by our Foreign Commercial Service, the display of American agricultural products organized by our Foreign Agricultural Service, the information booth on educational opportunities in America, the office for our Consular Section to render assistance to American citizens, and my speech to you - reflect the many facets of our relationship with Macau.
When I first came to Macau last September as Consul General, I remarked on the changes in the city since I last visited as a young professor almost thirty years ago. Now, I can remark on the changes since December 20 when I participated in the handover ceremonies. In many respects, those changes, although no less significant, are much less visible overall. That is as it should be. Macau's unique character and institutions, and the freedoms you have enjoyed, are to be treasured and thus preserved. But the new flags one sees upon arrival at the ferry terminal also make clear there has been a fundamental change. What has changed, of course, is that Macau, as a special administrative region in the People's Republic of China, is now governed in most areas by Macau people. And I have noticed a sense of energy, dynamism and determination as Macau's new officials take up their responsibilities. In addition, I have also been pleased to note a decline in violent crime and a reported increase in tourist travel in Macau. Overall, a hopeful beginning.
Today I wish to review key elements of our bilateral relationship, including areas where we seek to strengthen bilateral cooperation and increase business opportunities. I will also talk briefly about China's accession to the WTO and what my Government is doing to help bring that about.
U.S. Engagement Continues
At the outset, let me reassure you that although the United States Consulate General is located in Hong Kong, we take our jobs as U.S. representatives to the Macau Special Administrative Region very seriously - whether in the consular, diplomatic, commercial or law enforcement spheres. American interests in these fields are stronger today than ever before, and we want to continue to pursue them, in Macau as elsewhere in Asia. That is why we want to maintain - and even increase - our cooperation and our involvement in the Macau SAR.
Macau's long-term outlook will be shaped by several factors. Obviously the unfolding relationship with China is a key one. A second, critical factor is the way that Macau itself, now governed by Macau people, shapes its future - in other words, how Macau exercises its autonomy. I have been encouraged by clear and thoughtful statements from civic and government leaders that give voice to this recognition. The third key factor is international involvement - business, official and people-to-people. The continued attention of the international community and Macau's links with the rest of the world can make a key contribution to its future.
With regard to the first factor, Macau's relationship with China, China made important promises in the 1987 Sino-Portuguese Joint Declaration and the 1993 Macau SAR Basic Law. China said that Macau would continue to enjoy a high degree of autonomy and that its economy and way of life are to remain unchanged for 50 years. The Chinese leaders reaffirmed these commitments at the handover, and we welcome those reaffirmations.
The protection and development of fundamental human rights is an important aspect of Macau's unique character and measure of its autonomy. Macau citizens enjoy a high degree of religious tolerance, enshrined in Macau's Religious Freedom Act. They enjoy the right to petition the legislature. There is freedom of speech and of the press. A free press can play an important role in increasing government transparency and hold officials to high standards of integrity. I understand the Legislative Assembly will begin working on legislation to improve worker rights, including collective bargaining rights. All of these rights and civil liberties - their daily exercise and protection -are what has made Macau such a special place to live and visit. They are thus key to its future development.
We are also interested in how Macau's democratic institutions (the legislature, the judiciary, and civic organizations) develop because they shape the overall legal environment in which Macau residents, including the more than 500 Americans resident in Macau, live and work. These institutions make a vital contribution to preserving the integrity of the system and reflecting the wishes of the people of Macau. In this regard, we welcomed the commitment Chief Executive Ho expressed in his December 20 speech to work for a "highly efficient, transparent and accountable public administrative system," to ensure the SAR government and society will be "open and democratic," and to continue Macau's special features as a home to citizens of different ethnic and cultural backgrounds.
As for Macau's international links, the United States seeks to enhance cooperation with Macau. That was reaffirmed recently at the top levels of the U.S. government. I'd like to read you an excerpt from a letter President Clinton wrote to Chief Executive Ho at the time of the handover ceremony. The President wrote:
"The people of the United States have enjoyed a long and friendly relationship with the people of Macau. Today Macau is home to hundreds of American citizens and enjoys a significant American business presence. The United States looks forward to promoting effective cooperation with the new Macau SAR government in pursuing our shared objectives.
We wish you and your new policy secretaries success in your new positions and hope the future will see a further strengthening of relations between the Macau SAR and the United States."
To strengthen our ties, my colleagues in the Consulate General and I meet regularly with Macau SAR officials. We have been very appreciative of the excellent cooperation, and in many cases real friendships, that have developed. We hope that senior Macau government officials will visit the United States.
We also encourage senior American officials to visit Macau and see for themselves the "One Country, Two Systems" arrangement in practice. The first parliamentary delegation to visit the Macau SAR Legislative Assembly came from the United States Congress in January. That delegation, headed by the vice chairman of the House International Relations East Asia Subcommittee, was impressed by the level of commitment they encountered in their discussions with the Legislative Assembly. Just two weeks ago, the State Department Legal Adviser, on a trip through the region, visited Macau for talks with senior government and judiciary officials.
We also support strengthened professional and cultural exchanges between the people of Macau and the United States. Over the past couple of years, the U.S. Consulate has sponsored American experts to visit Macau and speak on topics ranging from American studies to journalism. Under the auspices of our International Visitor Program, several Macau officials, journalists, and even a legislator have visited the United States to meet with their counterparts. We plan to continue that support.
In addition to official exchanges, more than 300 Macau students study in the U.S. each year. We hope that number will grow. I hope you had a chance to visit the Institute for International Educational Exchange (IIE) display down in the Gallery. IIE provides information and advisory services for students wishing to study in the United States. You can also consult their web site or call their counselors in Hong Kong, not only on America Day, but on any business day.
By the way, information on all of these exchange and educational programs, as well as visa information and important documents related to U.S. policy in Asia, can be found on the Consulate General's web site (www.usconsulate.org.hk).
Law Enforcement Cooperation
As in other cities, law enforcement cooperation is an increasingly important agenda item for the U.S. Consulate. We seek to develop that further in Macau. For example, we have begun working together to combat illegal money laundering. Consulate law enforcement experts participated in a meeting on money laundering organized by the Macau Association of Banks and attended by over eighty bankers, government and law enforcement officials. We want to increase information-sharing and training opportunities until eventually our law enforcement officials can conduct joint operations to fight transnational crime, including trafficking in women and children, narcotics smuggling, piracy of intellectual property, and financial crimes.
Since the handover, four Macau SAR law enforcement officers and judicial officials have been invited to participate in the Bangkok-based International Law Enforcement Academy (ILEA), sponsored by the U.S. and Thai governments. We expect another half dozen will attend ILEA courses in the next six months. These courses provide opportunities to exchange crime-fighting strategies and to network with counterparts from across the region. Increasing Business Ties
Speaking at the World Trade Center, I know that business is your most immediate concern. As Macau's largest trading partner, the United States purchased in 1998 almost half of Macau's exports ($1 billion U.S. dollars), but exported only $40 million to Macau. We are eager to expand sales here.
Our Commercial Section has been working to promote awareness of Macau and opportunities for American business. I look forward to their numbers growing.
Downstairs in the Trade Gallery is the largest exhibit we have staged in Macau of American products, catalogs and franchising information from more than 90 U.S. companies. I hope you had an opportunity to visit, and, more importantly, got some ideas for mutually beneficial deals.
Macau's infrastructure development has created, and we hope will continue to create, opportunities for U.S. firms. We are pleased to have U.S. firms such as Ogden playing a role in the operation of Macau's international airport. Secretary for Transportation and Infrastructure Ao Manlong has urged us to encourage U.S. investors to check out opportunities in Macau's upcoming rail and other infrastructural development projects. Changes such as the liberalization of Macau's telecommunications market may also attract more U.S. investment. If this is addressed and plans to improve rail and highway links between Macau and China are realized, I am confident that our direct trade with Macau and through Macau to other points in the Pearl River Delta and beyond will increase.
Macau's economy and market, while small, have their strengths: low rents, a convenient new airport where landing slots are still available, reasonable warehouse facilities for logistics centers, and easy access to the booming Pearl River Delta. The Special Administrative Region's free market policies can serve as a model for others in the region. I encourage you, both government and business, to do more to promote Macau's competitive strengths to Americans and other potential international business partners.
There are some steps Macau can take to make investing and operating here a simpler, more transparent process. Like the people of Macau, we welcomed Chief Executive Ho's public commitment to tackle law and order and corruption issues. We also welcome some streamlining of the "red tape" involved in doing business here. Improvements in these areas - some already visible - will make Macau a more attractive place to live, invest, and do business. We appreciated, for example, the Government of Macau's efforts in the last several weeks to clarify the procedures for granting long term residency permits to the more than 500 Americans who live and work in Macau. Another initiative which I believe will help Macau attract more international businesses is the development of one or more international schools, currently underway.
Just as we seek to promote expanded business ties between Macau and the United States, there are two areas of concern which, if not tackled strongly, will cast shadows over those prospects. The establishment of the Macau Special Administrative Region opens an opportunity to write a new chapter in efforts to stop illegal textile transshipments and intellectual property piracy.
The U.S. currently purchases forty eight percent of Macau's textile and garment exports. Illegal transshipments damage Macau's legitimate manufacturing enterprises and take jobs away from Macau. We seek to initiate with the Macau government a new era of cooperation that will stop these illegal activities that harm legitimate industry on both sides of the Pacific and tarnish Macau's international reputation.
Protection of intellectual property rights poses similar challenges here as elsewhere in the region. Strong protections, including a serious and sustained enforcement effort, are essential to Macau's efforts to attract foreign investment and to develop high technology industry and services. We have seen some recent, positive developments, including the passage of a new copyright law that provides criminal penalties for piracy, prosecution of retailers of pirated CDs, a new Source Identifier Code requirement, and tighter controls on raw materials used to produce audio and video discs. And just two weeks ago, a Macau court convicted and handed down a significant sentence to two men charged with such piracy. Unfortunately, walking through some shopping areas in Macau, one sees that piracy remains a major problem. It is too early to declare victory: the battle must be intensified. We hope Macau's law enforcement bodies and courts will use the new criminal penalties to protect vigorously intellectual property rights. We have greatly appreciated the Government of Macau's cooperation and look forward to working together to stop such piracy.
One final issue related to business is travel. I know that an issue of concern to many of you is the provision of visas to Macau residents. As I announced last September, the United States Government recognizes the new Macau Special Administrative Region passports. In addition, I can assure you once again that the Consulate will continue to issue Macau passport holders' multiple-entry, long-validity visitor's visas, which will ensure that Macau travelers are not inconvenienced with frequent applications. In addition, as the result of the Visa Waiver Pilot Program, Macau residents who hold Portuguese national passports are entitled to visa free entry into the United States. That program worldwide comes under review in Congress next month. We do not expect any change in the current visa-free entry for Portuguese passport holders, but will certainly keep you informed. Again, the Consulate's web site may be a helpful source of information.
U.S. China Relations
As I said earlier, we understand the relationship between China and the Macau SAR is a key factor in determining Macau's future. Macau and the United States have a shared interest in seeing China continue to open up and join the World Trade Organization on the basis of sound commercial terms.
The U.S.-China relationship is one of the most important ones for both our countries and for the world. 1999 was a difficult year for that relationship. The conclusion of our bilateral WTO accession agreement on November 15 followed by the agreement on handling property issues connected with last May's tragic bombing helped move the relationship forward. We resumed high level discussions on strategic issues of mutual concern and, very importantly, on March 7, President Clinton presented a bill to the U.S. Congress seeking permanent normal trade relations status for China. The President has said that supporting China's entry into the WTO "represents the most significant opportunity that we have had to create positive change in China since the 1970s, when President Nixon first went there, and later in the decade when President Carter normalized relations."
Let me reassure you that President Clinton and his Administration understand the importance of China's entry into the WTO. We understand the profound stakes we all have in what happens in China and in how China relates to the rest of the world. That is why for the past three decades, every American President has worked for a China that contributes to the stability of Asia and that is open to the world. China's entry into the WTO moves China in the right direction. That is why the President and his foreign policy team have mounted such a massive effort to convince members of Congress to pass legislation soon granting China normal trade relations status on a permanent basis.
Let me conclude where I began. As we further develop the links between Macau and the United States, I look forward to many more reasons to come to Macau. I hope I can cut the ribbon at future U.S.-Macau joint ventures. The U.S. Consulate General stands ready to work with you toward that goal. We are committed to strengthening our cooperation with Macau. We expect to maintain a distinct and autonomous relationship with Macau. As Macau begins this new chapter in its history, we hope to be by your side as you write the pages.
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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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