DOW JONES NEWSWIRES
By Kate O’Keeffe
HONG KONG (Dow Jones)–A senior U.S. diplomat Thursday urged the Macau government to protect the rights of all foreign investors in the gambling haven and handle their requests to secure labor for projects fairly and in a transparent manner.
The comments come as casino operators such as Las Vegas Sands Corp. (LVS) unit Sands China Ltd. (1928.HK) struggle to find workers to build their expansion projects in Macau after the local government earlier this year imposed restrictions on foreign workers.
Speaking at a luncheon about the U.S.’s policies in Asia, the U.S. consul general for Hong Kong and Macau, Stephen Young, said U.S. companies have “readily recognized” the opportunities offered by Macau’s gambling and hospitality industries and have invested more than US$8 billion in the last six years to build casinos, hotels and exhibition centers, employing tens of thousands of Macanese.
Young, who assumed his post in March, has met with Macau’s chief executive, Fernando Chui, and had meetings with the management of Macau’s three U.S.-based casino operators, Sands China, Wynn Macau Ltd. (1128.HK) and MGM Resorts International (MGM).
He said he expects the Macau government’s plans to expand the tourism sector will create opportunities for U.S. firms. But in order to be successful, he said that all foreign investors must be “treated fairly and in a transparent manner.”
In September he said the consequences of Macau’s foreign labor restrictions on businesses was “an ongoing dialogue that they and I and the government of Macau continue to pursue” and that he was optimistic about a resolution.
But Las Vegas Sands said earlier this month the completion date of its long-delayed US$4.1 billion expansion project “is currently not determinable with certainty” until adequate labor quotas are received.
Analysts have said that without a resolution of the labor issue, the Sands project will be further delayed, possibly forcing a downgrade of longer-term profit forecasts for the company.
Speaking to reporters after his speech, Young declined to comment on a lawsuit filed in Nevada by the former chief executive of Sands China alleging he was wrongfully fired after refusing to carry out Las Vegas Sands Chairman Sheldon Adelson’s illegal demands.
Among Steve Jacobs’ claims in the suit are that he was ordered to arrange secret investigations on local officials and to threaten to withhold business from major Chinese banks unless they agreed to use influence with newly elected Macau officials to get favorable treatment. Las Vegas Sands has denied the allegations.
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