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HISTORY

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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 (Beijing) by the British Prime Minister in September, 1982.

Under the terms of the Joint Declaration, 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.

The Joint Declaration provides that for 50 years after 1997, 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, except in foreign and defence affairs, which are the responsibilities of the Central People's Government.

So as to ensure a smooth transition to the SAR, the Joint Declaration also provides for the establishment of the Sino-British Joint Liaison Group and the Land Commission. Both sides now meet regularly to conduct consultation on the implementation of the Joint Declaration. (More details about the implementation of the Sino-British Joint Declaration are given in Chapter 4.)

A Place from Which to Trade

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 forms of public facilities to meet the demands of the growing population.

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.