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After China ceded Hong Kong to the British in 1842, Macau's position as a major regional trading centre declined further still because larger ships were drawn to the deep-water port of [[Victoria Harbour]].<ref>{{Cite book|last=Mirza, Rocky M.|url=https://www.worldcat.org/oclc/1117312614|title=Understanding the global shift, the popularity of Donald Trump, Brexit and discontent in the West : rise of the emerging economies: 1980 to 2018|year=2019|isbn=978-1-4907-9327-6|location=[Bloomington, IN]|oclc=1117312614}}</ref> In 1846, Portugal dispatched [[João Maria Ferreira do Amaral]] to serve as governor of Macau.<ref name=":132">{{Cite book |last=Simpson |first=Tim |title=Betting on Macau: Casino Capitalism and China's Consumer Revolution |date=2023 |publisher=[[University of Minnesota Press]] |isbn=978-1-5179-0031-1 |series=Globalization and Community series |location=Minneapolis}}</ref>{{Rp|page=81}} He unilaterally declared Macau a Portuguese colony, stopped annual rent payments to China, occupied the nearby Island of [[Taipa]] (which had never been Portuguese territory), and imposed a new series of taxes on Macau residents.<ref name=":132" />{{Rp|page=81}} In 1846, there was a [[Revolt of the Faitiões|revolt of the boatmen]] that was put down.
While supervising road construction, Amaral ordered the destruction of Chinese tombs in the area. In the [[Passaleão incident|Baishaling incident]], Amaral was ambushed and killed by a group of Chinese villagers he encountered while riding outside the city gates.<ref name=":132" />{{Rp|page=81}} The Portuguese responded with a surprise attack on a nearby Chinese fort, forcing the Chinese to retreat.<ref name=":132" />{{Rp|page=81}} This was a milestone in the Portugal's assertion of sovereignty over Macau.<ref name=":132" />{{Rp|pages=
In 1871, the [[Hospital Kiang Wu]] was founded as a traditional Chinese medical hospital. It was in 1892 that doctor [[Sun Yat-sen]] brought Western medicine services to the hospital.<ref name=GovernmentPublication>As published on IACM Macau government publication "Footprints of Painter Gao Jianhu"</ref>
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In 1962, the gambling industry of Macau saw a major breakthrough when the government granted the ''[[Sociedade de Turismo e Diversões de Macau]]'' (STDM), a syndicate jointly formed by Hong Kong and Macau businessmen, the monopoly rights to all forms of gambling. The STDM introduced western-style games and modernised the marine transport between Macau and Hong Kong, bringing millions of gamblers from Hong Kong every year.<ref name="Macau economy">{{cite book |title=The Macau Economy|last=Chan|first=S. S.|year=2000|publisher=Publications Centre, University of Macau|location=Macau|isbn=99937-26-03-6}}</ref>
Riots broke out in 1966 during the [[Cultural Revolution]], when local Chinese and the Macau authority clashed, the most serious one being the [[12-3 incident]].<ref name=":132" />{{Rp|page=84}} This was prompted by government delays in approving a new wing for a Communist Party elementary school in Taipa.<ref name=":132" />{{Rp|page=84}} The school board illegally commenced construction. the colonial government sent police to stop the workers, and several people were injured in the conflict.<ref name=":132" />{{Rp|page=84}} On December 3, 1966, two days of rioting occurred in which hundreds were injured and six<ref name=":132" />{{Rp|page=84}} to eight people were killed, leading also to a total climbdown by the Portuguese government.<ref>[https://books.google.com/books?id=kebmyB-5-IYC&q=de+facto&pg=PA34 ''Portugal, China and the Macau Negotiations, 1986–1999''], Carmen Amado Mendes, Hong Kong University Press, 2013, page 34</ref> The event set in motion de facto abdication of Portuguese control over Macau, putting it on the path to eventual decolonization.<ref name=":132" />{{Rp|page=
[[File:12-3 Incident Apology.jpg|thumb|220px|The Portuguese governor of Macau signing a statement of apology under a portrait of Mao Zedong.]]
On 29 January 1967, the Portuguese governor, José Manuel de Sousa e Faro Nobre de Carvalho, with the endorsement of Portuguese prime minister Salazar, signed a statement of apology at the Chinese Chamber of Commerce, under a portrait of [[Mao Zedong]], with [[Ho Yin]], the chamber's president, presiding.<ref name="Maxwell">[https://books.google.com/books?id=99mDi7KYa1oC&dq=kuomintang+macau+1967&pg=PA279 ''Naked Tropics: Essays on Empire and Other Rogues''] {{Webarchive|url=https://web.archive.org/web/20160321220809/https://books.google.co.uk/books?id=99mDi7KYa1oC&lpg=PA279&ots=1ElNjmIq6u&dq=kuomintang%20macau%201967&pg=PA279#v=onepage&q=kuomintang%20macau%201967&f=false |date=21 March 2016 }}, Kenneth Maxwell, Psychology Press, 2003, page 279</ref><ref>{{cite web |title=A guerra e as respostas militar e política 5.Macau: Fim da ocupação perpétua (War and Military and Political Responses 5.Macau: Ending Perpetual Occupation) |url=http://media.rtp.pt/descolonizacaoportuguesa/pecas/macau-fim-da-ocupacao-perpetua/ |website=RTP.pt |publisher=RTP |access-date=1 January 2020}}</ref>
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In 1997, the [[Estádio Campo Desportivo|Macau Stadium]] was completed in Taipa.<ref name=MacauMuseum/>
Over a three year period in the late 1990s, as wave of gang violence referred to as the casino wars occurred in Macau.<ref name=":132" />{{Rp|page=11}} The casino wars were largely attributable to rival [[Triad (organized crime)|Triad]] groups who sought to gain control of Macau's illicit industries before Portugal transferred the territory back to China.<ref name=":132" />{{Rp|page=11}} The Portuguese authorities of Macau mostly failed to address the violence, which resulted in 122 deaths, or to catch those responsible.<ref name=":132" />{{Rp|page=11}}
==1999: Handover to the People's Republic of China==
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