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The Macao Special Administrative Region comprises the small mainland peninsula of Macao and the two islands of Taipa and Coloane. The region reverted to full Chinese adminstration on 20 December
1999, after almost 450 years as a Portuguese dependency.
The Portiguese settled in a number of temporary trading stations along the coast in the 1540s and early 1550s. In 1556-57, the Portuguese were allowed by the local mandarin to settle permanently on
the Macao peninsula. Within a decade a small but very propsperous city had developed on wealth derived almost entirely from the entrepot trade with Japan.
Macao’s pr osperity fell into decline with the expulsion of Portuguese
missionaries and traders from Japan. For over a century Macao was dependent on coastal trade supplying Dutch merchants, who still had access to the Japan trade.
With the development of the opium trade Macao’s fortunes took an upturn, and the colony enjoyed a period of steady prosperity. Macao was spared the convulsions that wracked much of China
in the early decades of the 20th centrury. Warlords left it alone, principally because it was too small and insignificant to be of any use to an attacker.
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