ENG-1983 — Page 327

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History

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THE dynamic drive of its people and their determination to survive continual challenges - 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 the territory's prosperity and economy expanded was somewhat tempered during 1982 and 1983 as concern grew about the future of the territory after the expiry in 1997 of the lease of the New Territories.

As a result of discussions about the future of Hong Kong between the British Prime Minister and Chinese leaders in Peking in September 1982, agreement was reached to enter into talks through diplomatic channels with the common aim of maintaining the stability. and prosperity of Hong Kong. A second phase of the talks began in Peking on July 12, 1983. The Governor, Sir Edward Youde, visited Peking on a number of occasions to take part in the talks. As part of the continuing process of consultation on Hong Kong's future, he also made several visits to London, some with unofficial members of the Executive Council, for discussions with British Ministers.

Uncertainty over the future, compounded by the inevitable impact on Hong Kong of the lingering effects of a world-wide recession, contributed to a decline in the value of the Hong Kong dollar, a lack-lustre property market and some outflow of capital, giving rise to a certain amount of concern and speculation.

Throughout the 142 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. As a commercial centre, Hong Kong has continually been confronted with international monetary fluctuations and trade restrictions. Always, the territory has adapted and survived these difficulties with characteristic resilience and forbearance.

Paradoxically, in its early days Hong Kong 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. Deficient in fertile land and water, and mountainous, 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 a burgeoning entrepôt trade with China.

Hong Kong's history has been one of material and social improvement; the expansion of the 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.