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HISTORY

HONG KONG moved into its remaining four years of British sovereignty at midnight on June 30.

Accordingly, preparations for the territory's transfer to China have advanced in many areas in the nine years since the signing of the Sino-British Joint Declaration on the Question of Hong Kong on December 19, 1984.

Under the agreement, British administration 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.

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The Joint Declaration, signed between the then British Prime Minister, Mrs Margaret Thatcher and the then Chinese Prime Minister, Mr Zhao Ziyang, provides that for 50 after 1997, Hong Kong's lifestyle will remain unchanged. The territory will enjoy a high degree of autonomy, except in foreign and defence affairs, and China's socialist system and policies will not be practised in the SAR. (For further details on the Joint Declaration, see Chapter 4.)

In recent years, Hong Kong's relationship with China has strengthened in breath and depth not only in terms of business ties but government contacts and the flow of people in both directions.

This close relationship is the product of culture, location and history.

Hong Kong's history has been one of material and social improvement: the expansion of cities and towns by cutting into hillsides; reclaiming the land from the sea; and the building of homes, schools, hospitals and other public facilities to meet the demands of the growing population. It is also a tribute to the dynamic drive of its people and their determination to meet all challenges.

Archaeological Background

Archaeological studies in Hong Kong, which began in the 1920s, have uncovered ancient artifacts and other evidence of human activity at numerous sites along the winding shoreline, testifying to events which span more than 6 000 years. The interpretation of these events is still a matter of academic discussion. Archaeologically, Hong Kong is but a tiny part of the far greater cultural sphere of South China, itself as yet imperfectly known.

Despite suggestions that local prehistoric cultures had developed out of incursions from North China or from Southeast Asia, a growing number of scholars believe that the prehistoric cultures within the South China region evolved locally, independent of any

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