Abstract:
Hong Kong was ceded by China to Britain in the nineteenth century. It has been a British colony for more than 150 years. From an island of rocks with few people on it, Hong Kong became a centre of trade and finance and a place where the laissez-faire economic system works well.
After two years of negotiations, the 1984 agreement between Britain and China finally concluded the future of the territory. On 1st July 1997, Hong Kong will be returned to the People's Republic of China. During this transitional period, the British government and the Chinese government have worked together to maintain stability in Hong Kong and to smooth the transition. However, there are a number of issues in dispute that led to conflict between the two countries. The struggle for power, the clash of national interests, and cultural differences are the main factors of conflict. Despite these differences, the two governments managed to cooperate with each other in many areas. They both realize the mutual benefits that can be derived from such cooperation.
The future of Hong Kong is related to a number of legal documents. These legal issues are still the major problems with which Britain and China have had to deal. Many Hong Kong residents have already emigrated to other countries fearing the communist regime. Those who remain are hopeful that after 1997 Beijing will give them the "high degree of autonomy", as promised in the Joint Declaration.
