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History
ON December 19, 1984, the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, Mrs Margaret Thatcher, and the Prime Minister of the People's Republic of China, Mr Zhao Ziyang, acting on behalf of their respective governments, signed the Sino-British Joint Declaration on the Question of Hong Kong.
Negotiations leading to the signing of the Joint Declaration had begun after a visit to Peking by the British Prime Minister in September, 1982.
Under the terms of the Joint Declaration, British sovereignty and jurisdiction over Hong Kong will continue to June 30, 1997, and Hong Kong will from July 1, 1997 become a Special Administrative Region (SAR) of the People's Republic of China.
For 50 years after that, Hong Kong's lifestyle will remain unchanged, and China's socialist system and policies will not be practised in the SAR.
The SAR will have its own government and legislature composed of local inhabitants and will enjoy a high degree of autonomy. However, the Central People's Government will be responsible for Hong Kong's foreign affairs and defence.
So as to ensure a smooth transition to the SAR government, certain other-provisions were included in the agreement, most important among them being the setting up of the Sino-British Land Commission, and the Joint Liaison Group, which now meet regularly.
A Place from Which to Trade
Hong Kong's history has been one of material and social improvement: the expansion of city and towns by cutting into hillsides, reclaiming the land from the sea, and the building of homes, schools, hospitals and other forms of public facilities to meet the demands of the growing population.
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Yet, in its early days, the territory was regarded as an uninviting prospect for settlement. The population of about 3 650 was scattered over 20 villages and hamlets and 2000 fishermen lived on board their boats in the harbour. Its mountainous terrain deficient in fertile land and water, Hong Kong possessed only one natural asset, a fine and sheltered anchorage. Largely the reason for the British presence that began in the 1840s, Victoria Harbour was strategically located on the trade routes of the Far East, and was soon to become the hub of a burgeoning entrepôt trade with China.
Hong Kong's development into a commercial centre began with its founding as a settlement under the British flag in 1841. At the end of the 18th century the British dominated the foreign trade at Canton but found conditions unsatisfactory, mainly because of the conflicting viewpoints of two quite dissimilar civilisations.
The Chinese regarded themselves as the only civilised people and foreigners trading at Canton were subject to residential and other restrictions. Confined to the factory area, they were allowed to remain only for the trading season, during which they had to leave their