Macao: Breath of Trouble

It perches like a nervous hummingbird on the long southeastern rim of Communist China — 61 sq. mi. of uneasy Portuguese suzerainty in a teeming, tumultuous Asian world. This is fabled Macao, a sleepy city of sin, smuggling and games of chance, which, like nearby Hong Kong, is tolerated by Peking mainly as a handy source of hard currency. Thus its 300,000 people live in the knowledge that they might at any time be engulfed by their giant neighbor. "When China breathes," goes one old Macao saying, "we tremble." Last week China breathed, and the tremble was almost seismic.

The...

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