Speaking at question time in Macau's legislature, Mr Ho announced a series of measures to check the runaway growth of the casino industry.

With signs that, left unchecked, the growth of the industry could have negative consequences, it was perhaps a question of when, not if, the government would move to rein in the sector. But Mr Ho's revelation that Beijing's views had influenced the decision is intriguing, if not scandalous.

The chief executive said: 'The central authorities hope the Macau economy will do well, [and] have an appropriate degree of diversification. [They] hope we will be able to solve new problems so that the society can enjoy long-term stability. We therefore must regularly review our development.'

Mr Ho's announcement followed a seemingly routine meeting he had with Mr Hu on the sidelines of the annual meeting of the National People's Congress in Beijing last month.

Although a despatch from the congress by the Xinhua news agency contained hints that Mr Hu was concerned about Macau's development, Mr Ho's remarks shed more light on the extent of Beijing's fears about the city's heavy reliance on gaming.

Mr Ho's reference to the order from Mr Hu did not sound as if it was made off the cuff. And it will lead to speculation about the behind-the-scenes power game between Beijing and Macau.

Regardless of Mr Ho's motive, the Hu factor lent added authority to his announcement. It should take some of the wind out of any protests from casino operators.

At the same meeting, Mr Ho announced a government cash handout of 5,000 patacas for each permanent resident and 3,000 patacas for each non-permanent resident, to help lessen the impact on them of the city's fast-rising inflation. He also said contractors would not be allowed use imported labour for minor public works.

If the brakes have been applied to the casino industry to put Macau's economy on a steady course for the long run, the economic relief measures are aimed at addressing the public's immediate simmering discontent.

The emergence of social and economic problems in recent years has prompted a change of thinking in Beijing. It may have sounded like friendly advice, but Mr Hu's directive on Macau's economic strategy indicates Beijing's hand in the development of both SARs may become more visible.

To judge from their public comments, the leaders in Beijing remain alert to the sensitivity in Hong Kong over its autonomy in domestic affairs.

But the central government's invisible hand can be seen behind city leaders' references to a 'harmonious society' and 'people-based governance', and in policymakers' emphasis on building cross-border links, developing the border zone and strengthening national education.

The conventional wisdom was that Beijing would relax its attitude to Hong Kong and Macau once their transfers of sovereignty had been completed smoothly.

Developments in the two cities in recent years show otherwise. Profound changes are taking place in relations between Beijing and the two cities under the 'one country, two systems' framework.