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Hong Kong under British rule
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For how long were the New Territories officially leased to the British?
This is Hong Kong Island. In the 200s BCE, it comes under Chinese control and for 2000 years, it remains mostly undeveloped, with just a few fishing villages. In 1839, Britain and China go to war. China wants Britain to stop interfering in their politics, and to stop smuggling an illegal drug called opium into the country. This is the First Opium War.
One of Britain’s first acts of the war is to occupy Hong Kong Island. Its deep harbour makes it the perfect place to establish a British port... far away from the watchful eye of the Chinese government. The First Opium War ends in British victory. In August, 1842, they gain Hong Kong Island permanently from China.
The Opium Wars continue, and Britain wins more land from China. In 1860, the British gain the Kowloon Peninsula. Then, in 1898, the British expand the Hong Kong colony even more with a 99-year lease of an area they call the New Territories. Wait… lease? Yes, the Chinese decide that Britain can rule the New Territories for a limited time.
Claude MacDonald, the British representative, picks 99 years because he thinks it is: as good as forever! This… might cause problems later on. In the early 1900s, Hong Kong quickly becomes an important connection between Europe and Asia. English becomes the official language. Buildings are built in the British style, and the colony adopts English Common Law.
Meanwhile, the British discriminate against Hong Kong's Chinese residents, limiting where they can live and what jobs they can hold. In 1941, during World War II, Japan occupies Hong Kong to declare war on the British Empire. The Japanese remain in control for three years. During the occupation, many people die from food shortages. Others are forcibly deported to Mainland China.
Hong Kong’s population shrinks by more than half. In 1945 Japan surrenders, and the British take Hong Kong back. Around the world, there is growing pressure to grant colonised lands independence. Britain doesn't go this far, but they do remove many of their discriminatory laws. British and Chinese culture blend together more and more.
In 1949, thousands of refugees arrive in Hong Kong from mainland China. They are escaping the communist revolution happening there. Many of these refugees have manufacturing skills which help to revive Hong Kong’s post-war economy. Hong Kong becomes famous for high-quality manufacturing. It has much to trade, and soon develops as a centre for global business.
But what about the 99 year lease? Now it’s the 1980s. Hong Kong has a capitalist economy and partially democratic political system modelled on Britain. Mainland China has a communist economic and political system, with strong government control. These are totally opposite ways of running economies and governments!
But the end of the lease is getting closer, so a decision must be made. In 1984, after years of negotiations, the British and Chinese governments sign an agreement. All three regions of Hong Kong will be returned to China at the end of the lease in 1997… with some conditions. Mainland China will keep its way of doing things, and Hong Kong will keep its way. The idea is: "one country, two systems.” Both sides agree it should last at least 50 years after the handover, until 2047.
The news shakes the business world. Global stock markets become very unstable. Many foreign companies make plans to leave Hong Kong. Can “one country, two systems” really work? At midnight on July 11, 1997, Hong Kong is peacefully handed back to China after more than 150 years of British control.