Edmund Ho Hau-wah, chief executive officer of Macao, said both sides were now busy trying to select a suitable site for the border zone.

During a press conference on Wednesday, Ho said the zone would further spur the development of Macao's manufacturing industry and create more work opportunities for its workers.

Macao's manufacturing industry relies heavily on the development of the Pearl River Delta and the entire Guangdong Province.

Ho arrived in Guangzhou on Wednesday to seek expansion of co-operation and economic ties with Guangdong.

Ho met Lu Ruihua, Guangdong's governor, and other senior provincial government officials for talks in this regard.

Lu promised to further improve the economic relationship with Macao in the future, saying further co-operation would be beneficial to both sides.

Meanwhile, Macao and Guangdong have reached agreements to jointly develop Hengqin Island, which lies in the mouth of the Pearl River.

"We should map out a detailed and long-term development plan for Hengqin Island that covers an area of more than 90 square kilometres before we start large scale construction and settle down projects," Ho said.

In previous years, Macao has been talking with Guangdong's government departments about turning the island into a new entertainment centre.

The development of Hengqin will strongly support Macao's entertainment and gambling industries in the years ahead.

Ho is also expecting to expand co-operation with Guangdong in the tourism, culture and sport sectors.

Ho said both sides would jointly establish car racing, art and cultural projects in Zhuhai.

Ho described Macao's relationship with Guangdong as brotherly.

Guangdong mainly sells garments, textiles, shoes and live pigs to Macao while importing knitted goods, cotton fabrics, wool yarn, synthetic fibre and plastic products.

As part of his trip, Ho will today visit the cities of Kaiping and Jiangmen, in the Pearl River Delta, to try and develop further economic opportunities.

（China Daily August 22, 2002）