THE ENEMY: Red Boom in Macao

Hong Kong's profitable traffic with Red China is now but a sixth of what it was last December. But that still does not close China's door to the West. The trade has spread across the wide Pearl River mouth to the ancient, gaudy Portuguese colony of Macao (pop. 400,000). Standing on a peninsula and two tiny islands, Macao (total area: 6 sq. mi.) is a place addicted to gold smuggling, with customs officers who look the other way and businessmen who will deal with anybody. It was at Macao, four centuries ago, that white men got their first firm foothold...

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