458 Hong Kong
By dint of persistence the Portguese were allowed to establish themselves at Macao in 1557, but when the British and Dutch reached the Far East in the first decade of the 17th century they found their way blocked by Chinese refusal to deal with any Europeans other than the Portuguese. Beginning with the Weddell expedition in 1635, a number of British attempts were made to open trade with Canton, Amoy, and other Chinese ports; but it was not until 1700 that regular British trade with China began, as a result of a change in Chinese policy permitting trade with countries that did not acknowledge China as suzerain.
From then on, European trade with China developed steadily, with the British as the principal European nation concerned. From about 1705 the East India Company had a house in Canton, but Europeans were obliged to quit the city during the off-season. Other European companies and individual traders soon solved this problem by renting houses in Macao, a practice which, though strictly against Portuguese law, was tolerated. In 1773 the East India Company also established themselves permanently in Macao, the company's officers proceeding to Canton for each trading
season.
Trade with the Chinese was conducted through a Chinese monopoly guild, charging prices far in excess of market values, and itself subject to ruthless extortion by corrupt officials. British diplomatic missions in 1793 and 1816 failed to obtain better treatment of British merchants in China, or a better basis for international trade. Change might have been expected had not the East India Company's charter been abolished, in India in 1813 and in China in 1833. The China trade then fell firmly into the hands of independent merchants, who previously had only limited chances of showing their capability. The British led the way in demanding that the Chinese Government provide Europeans with a port, where they could be free to trade with whom they wished, under their own laws. Finally, on the long- term issue of proper treatment for foreign traders, and on the more immediate issue of the import of opium into China, war between Great Britain and China broke out (1839–42). In the course of this, the Emperor's negotiator provisionally offered the island of Hong Kong as a trading depot. This offer was immediately accepted and the island occupied in January 1841. The cession of Hong Kong to the British Crown was confirmed by the Treaty of Nanking, 1842. From the start, Hong Kong was declared a free port, open to all comers, and thus it has grown into one of the world's greatest international trading
centres.
In 1860, by the Convention of Peking, Kowloon and Stonecutters Island were ceded to the Crown; and in 1898, by another Convention of Peking, the area known as the New Territories was leased to Great Britain for 99 years, thus bringing Hong Kong to its present size.
Prior to 1841 there was no recognised name for the island of Hong Kong. The anchorage at Aberdeen was known to sailors as Heung Kong and the Chinese characters representing the name may be translated as 'Fragrant Streams' or 'Fragrant Harbour'. Kowloon is the anglicised form of the Chinese Kau Lung (nine dragons). This name is derived from the ridge of nine hills which form a rampart along the northern side of the harbour and seem to guard the approach to China.
Constitution
The principal features of the constitution are prescribed in Letters Patent passed under the Great Seal of the United Kingdom, which provide for a Governor, an Executive Council, and a Legislative Council. Royal Instructions to the Governor, supplemented by further Instructions from the Sovereign to the Governor, prescribe the membership of the Executive and Legislative Councils.
Land Policy
All land is owned by the Crown and is not sold in perpetuity but leased for a term of years. In the early days Crown leases were granted for 75, 99 or 999 years. Nowadays, except in the New Territories, they are granted for 75 years, usually renewable for a further 75 years at a reassessed Crown rent. Crown leases for New Territories lands are now normally granted for a period of 99 years, less the last three days, from 1st July 1898. The government's basic policy is to sell leases to the highest bidder at public auction. Under special circumstances leases may also be sold by public tender. Land for public housing projects, special industries, public utilities, schools, clinics and religious, charitable and other non- profit making purposes is usually granted by private treaty.