7.5 Epilogue

Being part of Southern China, Hong Kong has an ecological environment similar to that of the region. In historical times, its social and economic developments were in step with Southern China and in particular the Pearl River Estuary.

For long they were part of the same administrative system and shared common traditions and folk culture.

The ceding of Hong Kong to Britain was a historic watershed. For more than a century, Hong Kong's developments had their own direction and pace. The relatively stable environment attracted waves of people from the mainland.

Given the combination of this environment and personal motivations, these settlers gave their all to make Hong Kong the international metropolis that it is today.

With its reunification with China on 1 July 1997, Hong Kong turned a new page.

"The Hong Kong Story" draws to a close with that event, but the Hong Kong story will continue to be written.

Credit : History Museum of HK.

7.4 Return of Hong Kong 1997

After 155 years of colonial rule, Hong Kong was finally returned to the motherland on 1 July 1997, thus starting a new chapter in its history. The Handover Ceremony took place in the Convention and Exhibition Centre on the evening of 30 June 1997.

It was officiated by President Jiang Zemin of China and the Prince of Wales.

Upon the conclusion of the ceremony, the Government of the Hong Kong Special Administrative Region was officially formed in accordance with the Basic Law which provides the territory with full authority to administer its local affairs, the legislative power to make its own laws and the independence of its judicial system and Final Court of Appeal.

Mr. Tung Chee-hwa was solemnly sworn in as the first Chief Executive of the Hong Kong Special Administrative Region.

Credit : History Museum of HK.

7.3 Sino-British Joint Declaration

In the late 1970s, with the New Territories Lease due to expire in mid-1997, investors took a wait-and-see attitude towards Hong Kong's investment environment.

In 1982 British Prime Minister Margaret Thatcher met with the leaders of China concerning the question of Hong Kong's future sovereignty.

Two years' diplomatic negotiation ensued, and finally the Chinese and British Governments agreed on the Sino-British Joint Declaration, which was co-signed in Beijing on 19 December 1984.

The Sino-British Joint Declaration consists of a main document, the Joint Declaration on the Question of Hong Kong, and its three annexes.

The Joint Declaration stipulates that after the establishment of the Hong Kong Special Administrative Region on 1 July 1997, Hong Kong will remain unchanged for 50 years.

Credit : History Museum of HK.

7.2 Development of the Stock Market and Banking

Securities transactions in Hong Kong have existed for more than a century.

Besides the original Stock Exchange of Hong Kong, three more institutions, namely the Far East Exchange, Kam Ngan Stock Exchange and Kowloon Stock Exchange, emerged in the boom years 1969-72, all being unified into the Stock Exchange of Hong Kong Ltd. in 1986.

Over the years, various other forms of investment such as trading in gold and silver, HIS futures and HIS options also swiftly developed.

Crises in the 1960s including bank runs, rocked the very foundations of the financial system.

In response, the Government restricted the issue of bank licences in 1965 and introduced the Deposit-taking Companies Ordinance in 1976 to tighten up the system.

Credit : History Museum of HK.

7.1 Conferral of honorific titles during the colonial period

Before 1997, the governor of Hong Kong recommended candidates to be awarded honours twice a year. Conferred in the name of the Queen, these honours provided a mechanism by which members of the Chinese elite could be co-opted into the ruling establishment of the Hong Kong government.

The Most Excellent Order of the British Empire includes honours in two divisions - civil and military - and medals are presented to all holders, some of whom can style themselves "Sir" or "Dame".

The medals come in different sizes depending on the class and are worn in different styles. For example, the famous Hong Kong merchant Sir Robert Ho-tung, who was made a Knoght Commander of the Order of the British Empire (KBE), was able to wear his medal around the neck on a long ribbon.

An Officer of the Order of the British Empire (OBE) would wear his or her medal, an example of which is displayed here, on the left side of the chest.

The Order of the British Empire includes five classes of honours. They are :

Knight Grand Cross (GBE) or Dame Grand Cross (GBE)

Knight Commander (KBE) or Dame Commander (DBE)

Commander (CBE)

Officer (OBE)

Member (MBE)

Credit : History Museum of HK.

7.0 Governance in Hong Kong during the colonial period

Before 30 June 1997, Hong Kong was a colony of the United Kingdom that was administered by a governor appointed by the British monarch as his or her sovereign representative in the territory.

During the colonial period, governance largely followed an executive-led model : power and authority were concentrated in the executive office with the governor at the helm, while two bodies, the Executive Council and the Legislative Council, played advisory roles.

The governor selected individuals from the Chinese elite as members of these two councils or to serve in the civil service departments, while others were awarded titles of honour or named justices of the peace.

The inclusion of Chinese of high status in Hong Kong's government structure formed part of the effort to develop a distinctly Hong Kong society from its roots as an immigrant community.

During the 1980s, as the colony entered the transition phase leading up to the 1997 handover to China, the Hong Kong government actively promoted the development of representative government.

Following the introduction of elected members to the District Boards, popular representation was gradually incorporated in the Legislative Council, the highest legislative body in Hong Kong, in a step towards the implementation of democratic elections and party politics in the territory.

Credit : History Museum of HK.