History

Human settlement in the location now known as Hong Kong dates back to the Paleolithic era. The region was first incorporated into Imperial China in the Qin Dynasty, and served as a trading post and naval base during the Tang Dynasty and the Song Dynasty. The area's earliest recorded European visitor was the Portuguese mariner Jorge Álvares, who arrived in 1513.[5][6] Contact with the United Kingdom was established after the British East India Company founded a trading post in the nearby city of Canton.

In 1839, the refusal by Qing Dynasty authorities to import opium resulted in the First Opium War between China and Britain. Hong Kong Island was first occupied by British forces in 1841, and then formally ceded from China under the Treaty of Nanking at the end of the war. The British established a Crown Colony with the founding of Victoria City the following year. In 1860, after China's defeat in the Second Opium War, the Kowloon Peninsula south of Boundary Street and Stonecutter's Island were ceded to Britain in perpetuity under the Convention of Peking. In 1898, Britain obtained a 99-year lease of the adjacent northern lands and Lantau Island, which became known as the New Territories.

Hong Kong in the late nineteenth century was a major trading post of the British Empire.Hong Kong was declared a free port to serve as an entrepôt of the British Empire. The Kowloon-Canton Railway opened in 1910 with a southern terminus in Tsim Sha Tsui. An education system based on the British model was introduced. The local Chinese population had little contact with the European community of wealthy tai-pans settled near Victoria Peak.

As part of its military campaign in World War II, the Empire of Japan invaded Hong Kong on December 8, 1941. The Battle of Hong Kong ended with British and Canadian defenders surrendering control of the colony to Japan on December 25. During the Japanese occupation of Hong Kong, civilians suffered from widespread food shortages caused by imposed rations, and hyper-inflation due to forced exchange of currency for military notes. Hong Kong's population declined from 1.6 million before the invasion to about 600,000 in 1945,[7] when the United Kingdom resumed control of the colony following Japan's defeat in the war.

Japanese troops march along Queen's Road following the British surrender in 1941.
View of Victoria Harbour, circa 1960Hong Kong's population recovered quickly after the war, as a wave of mainland migrants arrived for refuge from the ongoing Chinese Civil War. With the proclamation of the People's Republic of China in 1949, more migrants fled to Hong Kong from the fear of persecution by the Communist Party of China. Many corporations in Shanghai and Guangzhou also shifted their operations to Hong Kong. The colony became the sole place of contact between mainland China and the Western world, as the communist government increasingly isolated the country from outside influence. Trade with the mainland was interrupted during the Korean War, when the United Nations ordered a trade embargo against the communist government.

The textile and manufacturing industries grew with the help of population growth and low cost of labour. As Hong Kong rapidly industrialized, its economy became driven by exports to international markets. Living standards rose steadily with the industrial growth. The construction of Shek Kip Mei Estate in 1953 marked the beginning of the public housing estate program. Hong Kong was disrupted by chaos during the riots of 1967. Pro-communist leftists, inspired by the Cultural Revolution in the mainland, turned a labour dispute into a violent uprising against the colonial government lasting until the end of the year.

Established in 1974, the Independent Commission Against Corruption dramatically reduced corruption in the government. When the People's Republic of China initiated a set of economic reforms in 1978, Hong Kong became the main source of foreign investments to the mainland. A Special Economic Zone was established the following year in the Chinese city of Shenzhen, located immediately north of the mainland's border with Hong Kong. The economy of Hong Kong gradually displaced textiles and manufacturing with services, as the financial and banking sectors became increasingly dominant. After the Vietnam War ended in 1975, the Hong Kong government spent 25 years dealing with the entry and repatriation of Vietnamese refugees.

With the lease of the New Territories due to expire within two decades, the governments of the United Kingdom and the People's Republic of China discussed the issue of Hong Kong's sovereignty in the 1980s. In 1984, the two countries signed the Sino-British Joint Declaration, agreeing to transfer the sovereignty of Hong Kong to the People's Republic of China in 1997. The declaration stipulated that Hong Kong would be governed as a special administrative region, retaining its laws and high degree of autonomy for at least fifty years after the transfer. Lacking confidence in the arrangement, some residents chose to emigrate from Hong Kong, particularly after the Tiananmen Square protests of 1989.


Delegates from the United Kingdom and the People's Republic of China attend the handover ceremony of Hong Kong on the night of 1997-06-30.The Basic Law of Hong Kong, which would serve as the constitutional document after the transfer, was ratified in 1990. Over strong objections from Beijing, Governor Chris Patten introduced democratic reforms to the election process for the Legislative Council of Hong Kong. The transfer of the sovereignty of Hong Kong occurred at midnight on July 1, 1997, marked by a handover ceremony at the Hong Kong Convention and Exhibition Centre. Tung Chee Hwa assumed office as the first Chief Executive of Hong Kong.

Hong Kong's economy was affected by the Asian financial crisis of 1997 that hit many East Asian markets. The H5N1 avian influenza also surfaced in Hong Kong that year. Implementation of the Airport Core Programme led to the opening of the new Hong Kong International Airport in 1998, after six years of construction. The project was part of the ambitious Port and Airport Development Strategy that was drafted in the early 1980s.

The outbreak of severe acute respiratory syndrome took hold of Hong Kong in the first half of 2003. That year, half a million people participated in a march to voice disapproval of the Tung administration and the proposal to implement Article 23 of the Basic Law, which had raised concerns over infringements on rights and freedoms. The proposal was later abandoned by the administration. In 2005, Tung submitted his resignation as chief executive. Donald Tsang, the Chief Secretary for Administration, was selected as chief executive to complete the term.