ENG-1982 — Page 327

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History

THE dynamic drive of its people and their determination to survive a continual barrage of problems - mainly caused by external influences - has enabled Hong Kong to make rapid economic and social progress and become a leading international manufacturing, trading and financial centre despite an almost complete absence of natural resources.

Yet, the optimism prevailing during the past years as Hong Kong's prosperity and economy expanded was somewhat tempered in 1982. The continued poor economic performance of the developed countries which constitute Hong Kong's principal markets coincided with entry into the 15-year period prior to the expiry of the British-Sino lease of North Kowloon and the New Territories in 1997. The importance of the issue caused some caution and concern in financial and business circles, as well as in everyday life, with Hong Kong's people wanting a firm indication as to the status of the territory after 1997.

During a five-day official visit to China in September, British Prime Minister, the Rt Hon Margaret Thatcher, held discussions with Chinese Prime Minister, Mr Zhao Ziyang, achieving formal agreement for Britain to enter into diplomatic talks with China 'with the common aim of maintaining the stability and prosperity of Hong Kong'. This was followed by a three-day stay in Hong Kong by Mrs Thatcher, the first visit by a British Prime Minister to the territory while in office.

The meeting between the two prime ministers and continuing concern over the uncertain future of Hong Kong had immediate repercussions locally. The start of preliminary discussions between London and Peking was announced by the Governor, Sir Edward Youde, in October.

Throughout the 141 years since its founding as a British settlement, Hong Kong has had to face challenges. Massive influxes of immigrants from China (both legal and illegal) over the years and, more recently, boat refugees from Vietnam, have placed increased social pressures on the population, with an impact which reached into all corners of life. And as a commercial centre, Hong Kong has continually been confronted with international monetary fluctuations and trade restrictions. Always, the territory has adapted to survive these difficulties with characteristic resilience and forbearing.

Paradoxically, in its early days Hong Kong was not viewed as a desirable place to inhabit. Prior to its cession to Britain by China in January 1841, the territory was regarded as an uninviting prospect for settlement. The population of about 3 650 was scattered over 20 villages and hamlets and 2 000 fishermen lived on board their boats in the harbour. Mountainous and deficient in fertile land and water, it possessed only one natural asset, a fine and sheltered anchorage. Largely the reason for the British presence, Victoria Harbour was strategically located on the trade routes of the Far East, and was soon to become the hub of burgeoning entrepôt trade with China.