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CONTENTS

Editor's Foreword, by Jon Woronoff.                          

Preface                                                   1               
Abbreviations                                         6    
Maps                                                           


                         HONG KONG

INTRODUCTION                                   10

THE DICTIONARY                                 49

BIBLIOGRAPHY                                   384                  

Introductory Essay                                384          


1.General                                              394

2. History                                               396            

     2.1     General                                  396

     2.2     Pre-Colonial                          398

     2.3     Colonial Period                     400

     2.4     1898-1941                             403

     2.5     Japanese Occupation 1941-1945               404

     2.6     1945-1997                              405


3.     Politics and Administration           409

4.     Economy                                         413

5.     Society                                            419

6.     Crime                                        426

7.     Religion                                        428

8.     Law                                             429

9.     Biography and Company Histories               429

10.     Newspapers and Periodicals                    431

11.     Bibliographies                                   433

12.     Statistics                                   434


APPENDICES                                        436

1.     A Brief Outline History of Hong Kong.          436

2.     Tables                                        448

     2.1     Population by Ethnic Background          448

     2.2     Population of Hong Kong                    449

     2.3     Vital Statistics                         449

     2.4     Trade (Post-war)                         451

     2.5     Principal Sources of Import                452
          and Export (Post-war)


                                    MACAU

INTRODUCTION                                        455

THE DICTIONARY                                        464

BIBLIOGRAPHY                                        536
Introductory Essay                              536


1.     History                                        537

     1.1     General History                         537

     1.2     Early Period                              538

     1.3     Colonial Period                         538

     1.4     Decolonization Period                    540


2.      Politics and Government                         542

3.     Society                                        543

     3.1     Architecture                              543

     3.2     Arts, Literature and Culture               544

     3.3     Society                                   546


4.     Economy                                        547

APPENDICES                                        550

1.     List of Governors                              550

2.     Brief Outline History of Macau               556

3.     Tables                                        563

     3.1     Population of Macau                         563

     3.2     Age Distribution                         565

     3.3     Population Distribution by Area          565

     3.4     Macau's Exports and Import Growth,          566
          1979-1989

     3.5     Macau's Value of Industrial               567
          Production for Export

WADE-GILES/PINYIN CONVERSION TABLES               568

     PREFACE

     When we were first asked to write this historical dictionary of Hong Kong it seemed to us a difficult but not impossible task. We set ourselves a time limit and then proceeded to extend it as the scope of the project began to dawn on us, to the reasonable annoyance of the publishers. Our first task was to attempt to select the number of entries and that in itself was not easy. We were constantly faced with decisions about what to include and, more significantly, what to exclude. Having come to that decision the temptation was always to write long entries. As this would have made the dictionary much too cumbersome we had to consider the appropriate length for the particular entry. The result, as it must always be in a dictionary, is that the reader might find some entries unduly detailed, some which in the eyes of the reader need expanding, and some entries, looked for but not included. To those readers we present our apologies but derive a degree of comfort from the thought that an extensive reading list accompanies this book and can be profitably employed for further reading.

     One problem which faces an author using a language which does not employ the western alphabet is that there are a number of romanized vocabularies.  In the case of Chinese the two systems most widely employed are the WadeGiles system and the Pinyin.  In addition some spellings, e.g. Canton, are not in either of these two systems (Canton in Wade-Giles and Guangzhou in Pinyin) but are known almost universally in an English form.

     Pinyin is based on the official language Putonghua, the standardized northern dialect of Chinese, and all mainland Chinese sources now use the Pinyin spelling.  However, many historical texts written before the establishment of the People's Republic of China, and indeed many since, still use the older WadeGiles.  For instance, one of the standard history texts on Hong Kong, Endacott, G.B. History of Hong Kong. Hong Kong: Oxford University Press, 1973 employs the WadeGiles  system, while Cameron, N. in his more modern work An illustrated history of Hong Kong. Hong Kong: Oxford University Press, 1991 uses Pinyin. As a result place names differ, as in the case of Kwangtung and Guangdong and Peking and Beijing, in Wade-Giles and Pinyin respectively. (For those who want even greater complications Peking used to be termed Pekin in the nineteenth century!)  Similarly personal names also differ, for instance Mao Tse-tung (Wade Giles) and Mao Zedong (Pinyin).
     To compound the problem even further Hong Kong is almost a rule unto itself. In the colony the local dialect is not Putonghua (often referred to as Mandarin) but Cantonese. As a consequence many place names and personal names are translations based on an approximation of the pronunciation in that dialect. Even then there is often no standardization of translation. To illustrate the case there were two students registered in our class who were brothers and had deliberately chosen to spell, in English, their common surname Lee and Li.  We have, therefore, in the case of Hong Kong places and surnames, used those terms commonly found in government texts.

     To convert everything into Pinyin artificially imposes a set of names which nobody uses.  To employ only WadeGiles or English potentially confuses a reader who uses modern official Chinese government sources or refers to texts employing Pinyin.  Our solution is to use WadeGiles spelling most of the time, to use English occasionally, and to record the Pinyin in brackets where appropriate. Sometimes we use only the Pinyin when the meaning is clear.  We have also, when necessary, put entries in Pinyin and invited the reader to "see" the entry under WadeGiles (e.g. Deng Xiaoping see Teng Hsiao-p'ing). Finally, we have included at the end of the book a list which gives both versions so that the reader can check in the case of any confusion.
     In Macau the official language is not English but Portuguese. Many of the place names, personal names, government and other organizations are in that language. Fortunately the meaning, in nearly all cases, is fairly obvious. We have underlined the Portuguese terms.

     We would like to take this opportunity of thanking all those who helped us in the writing of this book. It would be impossible to thank everybody but some deserve particular reference: members of the Department of Political Science at the University of Hong Kong and in particular Dr Norman Miners, whose encyclopedic knowledge of Hong Kong we drew on unmercifully;  Dr David Clark and Professor Ian Scott who alerted us to sources of information on some of the more esoteric entries; Dr Patrick Hase who helped with the pre-colonial introduction to the book and read many of the entries and corrected many of the inevitable errors; Joseph Ting of the Hong Kong Museum of History for his entry on archeology and Philip Bruce of the Hong Kong Branch of the Royal Asiatic Society for his entry on that organization; Doreen King who wrote the entry on architecture (to our great relief); and Mrs D. Shroff for her entry on the Parsees. We would also like to thank Lara Mushkat, Carrie Sung, Dawn Roberts, Fred Yeung and Ellen Jones for their invaluable help in finding dates and information and helping to type and correct parts of the book. Finally, our heartfelt gratitude goes to Mr Patrick Lam who helped with the word processing, Mr Y C Wan, the curator of the Hong Kong collection library who withstood our predatory attacks with good humor and patience, and Dr Richard Irving and the Cartography unit of the Department of Geography and Geology who prepared the maps.
     Three authors produced this book. Elfed Roberts, Sum Ngai Ling and Peter Bradshaw. The first lectures at the University of Hong Kong in political science. He has written widely on the subject of the colony and has recently published Davies, S. and Roberts, E. V. Political Dictionary for Hong Kong. Hong Kong: Macmillan, 1990. Sum Ngai Ling has left Hong Kong to study for a doctorate in the United Kingdom. She has also written a large number of books on the subject of Hong Kong over the last ten years. Peter Bradshaw has recently worked in the territory on secondment from the British Open University working on the preparation of distance learning materials on Hong Kong society for the Open Learning Institute of Hong Kong.

                                        The authors.
                                           November 1991.


     ABBREVIATIONS


AMCHAM                    American Chamber of Commerce

BDTC                         British Dependent Territories Citizen

BL                         Basic Law

BN(O)                    British National (Overseas)

CBF                         Commander British Forces

CCP                         Chinese Communist Party

DB                         District Boards

EC                         European Community

EEC                         European Economic Community

ERP                         Electronic Road Pricing

FO                         Foreign Office

FCO                         Foreign and Commonwealth Office

GATT                         General Agreement on Tariff and Trade

GDP                         Gross Domestic Product

GIS                         Government Information Services

GNP                         Gross National Product

HKSAR                    Hong Kong Special Administrative Region

HMS                         His (Her) Majesty's Ship

ICAC                         Independent Commission Against Corruption

ICCPR                    International Covenant on Civil and                                Political Rights

ILO                         International Labor Organization

JLG                         Joint Liaison Group

KCR                         Kowloon-Canton Railway

KMT                         Kuomindang (Guomindang)

Legco                    Legislative Council

MFA                         Multi-Fibre Arrangement

NCNA                         New China News Agency (Xinhua)

NIC                         Newly Industrializing Country

NIE                         Newly Industrializing Economy

NPC                         National People's Congress

Omelco                    Office of the Members of the Executive and                          Legislative Council

PLA                         People's Liberation Army

PRC                         People's Republic of China

Regco                    Regional Council

RICO Act                    Racketeering Influence and Corrupt                          Organizations Act

ROC                         Republic of China          

RTHK                         Radio-Television Hong Kong

SAR                         Special Administrative Region

SEZ                         Special Economic Zones

Umelco                    Unofficial Members of the Executive and                          Legislative Council

UN                         United Nations


UNHCR                    United Nations High Commission for                          Refugees

Urbco                    Urban Council



     INTRODUCTION

     Hong Kong is situated at the mouth of the Pearl River in the southern part of China, 90 miles south of the great trading city of Canton (Guangzhou). In terms of its political origins, but not its physical geography, it can be divided into three parts:  Hong Kong Island; Kowloon and Stonecutters Island; and what are called the New Territories.  These three parts make up the Crown Colony of Hong Kong.  The first two were ceded and the third leased to Britain by the Chinese government during the nineteenth century.  The first, Hong Kong Island (35.5 square miles), was ceded in 1841 and formalized as a British colony in 1843.  In 1860 Kowloon peninsula (3 square miles) and Stonecutters Island (half a square mile) came under British control.  Finally, the New Territories were acquired under a ninety nine year lease in 1898.  These added a further 355 square miles, and are composed of territory on the mainland together with a large number of islands lying off the coast.  The capital city of the colony is Victoria which is situated on Hong Kong Island.  However, the title is rarely used and urbanization on the island has been so extensive as to make it impossible to recognize any distinct city in the area which used to be known as Victoria.

     The most salient issue for all this territory is that at the stroke of midnight on June 30, 1997 sovereign control over it reverts to the People's Republic of China.  The Colony then becomes a Special Administrative Region of the People's Republic of China (PRC).  With that transfer of control one hundred and fifty six years of colonial administration (four years of it under Japanese occupation) will come to an end.  Two years later the Portuguese possession of Macau will undergo a similar change.

     There are some precedents similar in form to those which will take place in Hong Kong and Macau.  But far more common in the case of the British and the Portuguese has been the granting of sovereign independence to their previous colonial possessions.  Sometimes decolonization was smooth; sometimes the result of bitter struggle.  Rarely have territories been handed over to the control of a third party in the face of considerable opposition from the local population.

     In the case of both Hong Kong and Macau the Chinese Government has maintained that both possessions are, and always have been, an integral part of the sovereign state of China.  They are seen as having been merely temporarily occupied by the foreign powers in question.  The two territories have always been part of the motherland and, as such, they must be returned.  Both the British and the Portuguese have eventually accepted that position.

     There can be no question that the two territories were part of China for hundreds of years before the Portuguese and British arrived on the scene.  They were administered in exactly the same way as all other parts of Kwangtung (Guangdong) Province.  Moreover, even since the establishment of colonial status in the 1840s (1550s in the case of Macau), the influence of China has been massive.  It would be impossible to understand the present or future of either Hong Kong or Macau without looking at the past, and in particular at the struggle between the western powers eager to "open up" China in the interests of trade, and the Chinese government equally eager to resist that attempt in the interests of preserving its independence.  

     Reaching even further back, Hong Kong has been inhabited for thousands of years, and was the site of flourishing Neolithic, and later, Bronze Age cultures.  These settlers found an abundance of fresh water and plenty of fertile soil.  There would have been little problem with migration along the coast.  Close proximity to the sea provided a rich harvest of fish and shellfish, and the inland forests were full of game.  In these circumstances, the occurrence of early settlement is not surprising.  Excavations on the offshore islands of Lantau and Lamma (which are part of Hong Kong) have, in fact, uncovered two neolithic cultures with the oldest being dated in the region of 4000 B.C.

     Bronze Age artifacts from between about 1200 B.C. and about 220 B.C. have also been found.  Unfortunately little is known about these Bronze Age people.  It has been conjectured that they may have been the ancestors of the Yiu people, who were still inhabiting the more remote mountain areas near Hong Kong in the early nineteenth century.  The Bronze Age inhabitants, however, were essentially a people of the seashore, whose remains have consistently been located on the coast, adjacent to suitable landing sites for small boats.  The most spectacular remains of these people are the spiral form rock carvings which have been discovered on rocks overlooking the coast at nine sites in Hong Kong.  Some of the ritual objects of these people, especially the decorated bronze knives, and the stone disks, as well as the stone carvings, are fine, and suggest a welldeveloped cultural identity.  Nothing equivalent to these carvings has been discovered outside Hong Kong.

     During the Ch'in (Qin) dynasty (221 - 207 BC) and the Han (Han) dynasty (206 BC - 220 AD) the south of China was brought under Chinese control by military conquest.  At first, only the area immediately around Canton (Guangzhou) was controlled.  The aim of conquest was control of trade: the south was feared and hated by the northerners as the abode of evil spirits and fierce animals, of men who, in the northerners' eyes, were at best halfhuman.  It was seen as a pit of foul diseases, a deathridden hellonearth, but it was also the source of ivory and rhinoceros horn, pearls and medicinal drugs and dyestuffs, all of which were extremely valuable.  Early evidence of direct Chinese contact with the inhabitants of the Hong Kong area tends to be mainly in the form of stray Chinese coins, probably evidence of trade.  Trade was followed by the settling of the region by Chinese people, again initially in the area immediately around Canton (Guangzhou).  However, it is not yet completely clear when Chinese troops or settlers first came into the Hong Kong area.

     The earliest evidence of Chinese settlement in the Hong Kong area, apart from stray coins, is the Han (Han) dynasty tomb found at Lei Cheng Uk in Kowloon, dated about 220 A.D.  This tomb, as fine as tombs of the same period in the immediate Canton (Guangzhou) area, may well be evidence of Chinese settlement of some sort nearby.  The tomb is entirely Chinese in design and detail.  The existence of the tomb implies bricks available in the area, masons, ritual specialists and makers of tomb furniture.  These may all have been brought down to the site from Canton (Guangzhou), but this would have been a hugely expensive undertaking, as well as a pointless one. It is far more likely that the tomb is of someone of importance resident in the area.

     The earliest known Chinese settlement is the naval base at Tuen Mun.  For this we have no written evidence earlier than one of the poems of Han Yue of the early ninth century.  It is very likely, however, that the naval base was much older than Han Yue, and it may well date back far enough to be connected with the Han tomb.  The Buddhist monastery at Tuen Mun has a traditional foundation date of the mid fifth century. This is not impossible, since Buddhist monasteries were being founded at about that date outside a number of other government centers in the area.  Written evidence of the existence of the monastery, however, exists only from the mid tenth century.  Trade between China and IndoChina was of great significance from the fourth and fifth centuries, and most of this trade was conducted at Canton (Guangzhou). Tuen Mun is extremely well situated as the forward naval and customs post for Canton (Guangzhou), where incoming ships could be stopped and searched before being permitted to pass up river, and this was almost certainly Tuen Mun's function in the time of Han Yue, and doubtless for a long period before.  Military installations such as Tuen Mun were usually protected by an exclusion zone around them in which no civilians (other than convicts in forced labor camps providing food for the garrison) were permitted without military authority, and the existence of this naval base may well have left the previous inhabitants in the mountains more or less untouched.

     Contacts between the area's original inhabitants and the Chinese are more evident at the other major early Chinese settlement, Tai Po.  Tai Po was a major source of pearls, from at least the eighth century, and it became, in consequence, a strongly defended imperial monopoly estate from the ninth century at the latest.  This estate, and its exclusion zone, survived without change right through to the mid fourteenth century.  The local aboriginal people were conscripted into the pearl fisheries; a hardship that resulted in protests at various dates throughout the period.  It is likely that Kowloon was yet another early imperial estate, probably subordinate to Tuen Mun.  If, as seems likely, the Tuen Mun exclusion zone covered all the islands in the Pearl River delta, then a second naval station east of the Kap Shui Mun channel would have been a practical necessity.  Saltfarms were a secondary imperial interest at Kowloon, and at various other places on the coast throughout the region.  At all events, when the last Sung (Song) emperor was in the area, it was thought appropriate for him to stay at Kowloon, strongly suggesting that this was an imperial estate in the mid thirteenth century.

     Given the existence of these two or three imperial estates and their exclusion zones which must have covered most, if not all, of the Hong Kong area  it is, perhaps, not surprising that, despite the evidence of early Chinese military and imperial interest in the area, there is no evidence of civilian Chinese settlement until the very end of the eleventh century.  At that date Tang Fuhip, a retired official, set up home for himself and his family at Kam Tin, apparently with imperial permission.  Shortly afterwards wellconnected members of the Wong and Lee families secured imperial grants of Cheung Chau Island and Lantau Island respectively.  All three areas would have been in the exclusion zone of Tuen Mun, and it seems likely that the Government was following a policy of allowing settlement within that old exclusion zone  possibly a change of policy connected with the increasing shortage of cash plaguing the Sung (Song) Government around this time.  From the thirteenth century settlement can be seen elsewhere in the region, and particularly in the area around Kowloon City.  Here many of those involved seem to have been members of the Court of the last Sung (Song) Emperor, abandoned after his suicide in the face of the invading Mongols.  Only the Tolo Harbor catchment, the exclusion zone of Tai Po, remained without any signs of settlement at this date.

     Despite the increasing pace of settlement in the area through the twelfth and thirteenth centuries, the probable reduction in the imperial military presence (which the abandonment of the exclusion zones seems to imply) left the area open to problems.  The area was, in fact, a "frontier" land, with all the social and political problems that suggests.  Unfortunately, very little information survives about this period in the history of the area, but it seems very likely that the area fell more and more into the hands of the Ho family.  The Ho family seem to have treated the whole area as a personal fief, and controlled it through an army of personal retainers.

     The head of the Ho family, Ho Tsan, used his local power and his personal army to support the first Ming (Ming) Emperor in his bid for the throne in the mid fourteenth century, and was rewarded with the title of Earl of Tungkuan (Dongguan).  With the title went land, and Ho Tsan seems to have received among these lands the old exclusion zone of Tai Po (where the pearl beds had become exhausted). He was closely connected with the descendants of Tang Fuhip.  It also appears that a major reorganization of settlement, with groups of the Tangs being relocated to strategic locations in various parts of the area, occurred at this time.  Ho Tsan's son, however, fell from imperial favor at the very end of the fourteenth century, and was executed with all his family.  In the resulting confusion, the Tangs and other groups previously subordinate to the Ho's became the local landowners without any landlords above them, and, with this, the early modern period of Hong Kong's history begins.

     In the fifteenth and sixteenth centuries, the area was deprived not only of imperial troops, but also of Ho Tsan's militia forces.  As a result, the area was ravaged by bandit and pirate gangs (one of which was able to capture, and control for nine years, the city of Tapeng (Dapeng) just northeast of the Hong Kong area) throughout the period.  Eventually the imperial Government was forced to treat coastal defence in the area as a major priority and in 1571, after a particularly heavy battle with a pirate band, the area was set up as a separate county.  This meant that a senior official was available to keep an eye on the defenses on a fulltime basis.  The county consisted of the Hong Kong area, plus the area just to the north in the Nant'ou (Nantou)Shen Tsen (Shenzhen)Tapeng (Dapeng) zone.  A network of small forts was set up to guard the coasts, centered on major garrisons at major centers, and with a respectable fleet of warjunks to patrol the seas offshore.

     Unfortunately, however, even these precautions were not entirely successful.  In 1661, the coastal ravages of Koxinga, the proMing figure who had set himself up as ruler of Taiwan with a powerful fleet, became so much a problem for the new Ch'ing dynasty that the Government decided on a "scorched earth" policy, driving away all residents living within fifty li (approximately 12 miles) of the coast, and pulling down their houses.  Not until 1669 was this Coastal Evacuation Order rescinded.  The displaced families had lost their land and the grain it could grow, but the Government had provided nothing in its place.  Thousands died of starvation.  Village tradition in the area states that at most a third returned from their eight year exile.

     Up until 1669, all the land residents of the Hong Kong area had been Cantonese speaking in common with the rest of the lands bordering the Pearl River estuary.  After 1669, however, the depleted Cantonese clans were unable to bring back into cultivation all the lands they had previously controlled.  The imperial Government, anxious not to lose the taxes from these lands, urged the old families to sell off their no longer needed lands to new settlers, mostly Hakka speakers from the northeast.  Between 1669 and the mid eighteenth century hundreds of Hakka groups moved into the area, taking up the more marginal lands in the mountains, particularly in the eastern part of the area.  It was this mixed society, of old Cantonese clans in the fertile west, newer Hakka families in the less fertile east, plus a few groups of Tanka and Hoklo boat people, that characterized the area when the British first appeared on the scene early in the nineteenth century.

     In 1841, when Hong Kong Island was ceded to Britain, the area (including Kowloon and the New Territories not acquired at this point) had some 700 villages, of which about 400 were Hakka, and a population of about 180,000, of which rather more than half were Cantonese speaking.  Major market towns existed at Tai Po, Yuen Long, and Kowloon, with subordinate markets at Shamshuipo, Sheung Shui, Ha Tsuen, and Kam Tin.  Fishing ports, which also served as markets for the immediately adjacent land people, existed at Cheung Chau, Tai O, Ping Chau, Sai Kung, Hang Hau, and what are now called Stanley and Aberdeen.  The largest town was Cheung Chau, with 200 shops and workshops, and a total population of about 2,500.  Yuen Long, Tai O and Kowloon each had between 100 and 150 shops and populations of up to 2,000; Tai Po, and Aberdeen were a little smaller, and the other towns very much smaller.  The area was entirely rural, subsisting on the rice and vegetables grown by the farmers themselves: the area had very little trade except for the essential local trade of the market towns.  Only three items were traded beyond the local area: tableware; fish; and stone.  The kilns at Wun Yiu, near Tai Po, supplied tableware to the whole county, and even further afield.  The fishing ports were important in the South China coast trade in dried fish.  Stone quarries, especially in the area around Kowloon and on the north shore of Hong Kong Island, cut stone for shipment to Canton (Guangzhou) at about the time the British arrived the little town of Shaukeiwan was beginning to develop as the port for the biggest group of quarries.  The area was, in fact, an entirely typical part of Kwangtung (Guangdong) province, long settled and peaceful, with its local schools, temples, respectable local elites, markets, ports, and smallscale industries.

     The Macau area does not have quite the depth of history of the Hong Kong area.  What is now Macau is found on the mudflats of the West River Delta, and these were too marshy to attract settlement at an early date.  The first interest in the area was shown by Hoklo boatpeople.  These people, originating from the area near the borders of Kwangtung (Guangdong) and Fukien (Fujien) Provinces, operated the big trading junks which moved up and down the coast.  They found the harbor at Macau a useful center for their trade in part at least because there was no earlier population there to interfere.  Around the year 1400 these Hoklo boat people established the great temple of Tin Hau from which the town takes its name (A Ma Kau  "Anchorage of the Honorable Old Lady").  They also founded the major agricultural village of Mong Ha, with its temple to Kuan Yin, at about the same time.  During the fifteenth century a few boatyards and other workshops developed near the Tin Hau Temple, but the place was by no means a major settlement before the Portuguese arrived in 1557.

     To understand their interest it is helpful to comment first on the importance of Canton (Guangzhou) and the Pearl River.  Canton (Guangzhou) has always been the major port for China's foreign seaborne trade.  There is very little east of China except Japan and the vast emptiness of the Pacific Ocean.  Moreover, for much of its history even Japan was unwilling to trade, even with China.  Thus, almost all China's seaborne trade has always come up, from the south, from IndoChina, with the Pearl River estuary often being the first landfall in China.  Up this route came trade from IndoChina in the fourth century, from India in the fifth century, and from Arabia in the sixth.  As a result Canton became, from the fourth century onwards, the most cosmopolitan and mercantile of all Chinese cities.

     When Europeans first reached China by sea early in the sixteenth century, they, too, came up the coast from the south, and they, too, saw in Canton (Guangzhou) the obvious destination for their trade.  In the sixteenth century the Portuguese traders needed two and a half years to make the round trip from Lisbon to China, and this was impracticable without a base on the China coast for repairs and restocking.  At first the Portuguese wanted Tuen Mun, in Hong Kong, and they made several determined attempts to take it by force early in the sixteenth century (forming a part of the "pirate and bandit gangs" which caused the local magistrate so much trouble).  Some of these were successful for a short time, but all were defeated eventually by the local forces of the county magistrate.  Tuen Mun is close to the deep sea channel to Canton (Guangzhou), and its strategic significance to the Pearl River has been recognized since the earliest times.  Macau was very much a second best choice for the Portuguese, but one which they were eventually forced to accept as the best they could get.  Even then it is said that the imperial Government was only prepared to allow them to settle there after Portuguese help in destroying a major pirate fleet in the area which had proved too powerful for unaided local resources.  The Portuguese eventually opened a trading station at the mouth of the Pearl River to conduct trade with the South of China in 1557.  

     The British did not establish their presence in Canton (Guangzhou) until 1685, but within two years the East India Company arrived in Macau.  It was granted a monopoly over trade by the British government which was to last for the next one hundred and fifty years.  In the early years the East India Company, which also had a monopoly in India, oversaw a major increase in trade with China, mostly in tea and silk.  This trade was organized by private companies with no foreign governments entering into formal diplomatic relations with the Imperial Government at any level.  Foreign traders could only operate through the Hoppo (Chinese customs superintendents) and Chinese merchants, known as Hongs, who in turn, were granted monopolies by the Chinese Imperial Government.  These Hongs were the only means by which foreign traders were able indirectly to petition the Chinese government either for improvements in conditions or for redress of grievance.

     Although the British had a relatively late start, by the late eighteenth century they dominated trade with China.  The number of ships leaving Britain for Canton in 1751 was only 19, but by 1792 it had risen to 57.  The main exports to England were tea, raw silk, chinaware and rhubarb.  In return came wool products, lead, iron, copper and furs.  The East India Company, by now  effectively the government in India, imported from China quantities of nankeen cloth, alum, camphor, pepper, sugar and chinaware and in return exported quantities of raw cotton, ivory, sandalwood, silver and opium.

      Demand for goods from China, particularly tea which was becoming a popular beverage, was expanding rapidly during this period.  Unfortunately for the British the demand in China for British goods was not as buoyant with the result that a massive trade imbalance developed.  This had to be paid for in silver bullion which led to a massive outflow of reserves by the East India Company.  This problem for the Company was compounded by the trading restrictions imposed in Canton (Guangzhou).  These regulations were first promulgated in 1759, but were gradually tightened until by the end of the eighteenth century resistance began to grow among foreign merchants.  For their part, the Chinese authorities, whilst willing to trade with the west, were increasingly aware of the growing challenge to their position from the foreigners.  They refused to allow the traders to expand their operations into other parts of China and closely supervised the conditions under which trade took place.  The foreign merchants in Canton were only allowed a limited period of residence in the city during the trading season from approximately October to January; for the remaining period they had to return to Macau.  No foreign wives were allowed in the city, and the traders had to live within a designated area, set apart from the Chinese, in Canton.  Further irritations to the Europeans were caused by corruption in some of the Hongs, the imposition of duties and taxes, and a distaste for certain aspects of Chinese law.

     Accordingly, the British, chafing under the lack of freedom to trade, and under pressure from the merchants to seek an improvement in the situation, attempted to regularize relations with the Imperial government.  Missions were sent to Peking (Beijing) in 1793 and 1816, but both failed miserably.  The requests by Lord Amherst in 1816 for the removal of grievances in Canton, free trade between China and Britain, the abolition of the Hong system, the opening of more ports in areas to the north of Canton and the setting up of a diplomatic mission in Peking were all refused.

     Meanwhile an even greater problem was developing with the growth of the opium trade in China.  In the attempt to reduce the trade imbalance opium, which was grown mainly in India, was shipped into China to feed a growing demand.  Between 1817 and 1834 nearly three quarters of the value of British imports to China came from opium.  This reversed the trade imbalance dramatically.  Silver bullion now flowed out of China damaging the domestic economy at the same time as the drug it paid for created social tragedy.  Much of the trade was conducted, not by the East India Company, but by a growing number of private merchants operating illegally but openly.  In 18291830 one such trading company, Jardine Matheson and Company, exported over 5,000 chests of opium into China. This represented one third of the total imports of the drug.

     These private merchants, imbued with the philosophy of free trade, were opposed to the monopoly of the East India Company, were vociferous in their complaints against the restrictions imposed on them by the Chinese authorities, and were active in lobbying the British government to improve matters.  However, and not surprisingly, the Chinese government responded, not by allowing greater privileges, but by actively attempting to suppress the opium trade.

     Clearly matters were coming to a head, and two particular events led to the breakdown of relations.  The first was the ending of the East India Company's monopoly in China by the British government in 1833.  In response the Chinese government, anxious to have someone with whom to deal, asked the British government to establish a Taipan (Head Merchant) in Canton to represent British trading interests.  The response from Britain was to appoint Lord Napier as the Chief Superintendent of Trade.  In a way this changed the ground rules of the British relationship with China as Lord Napier saw himself as a representative of government itself and not merely a spokesman for the merchants.  He was also given explicit instructions from London to negotiate for an extension of trade beyond Canton.  This was going far beyond that which the Chinese had asked for, and constituted a clear demand for diplomatic relations which broke with the status quo.

     The second incident was the imperial order of 1836 to suppress the opium trade.  In 1839 attempts by Imperial Commissioner Lin to destroy completely any opium activities finally triggered a military confrontation.  On 18 March 1839, Lin ordered British merchants to surrender all stocks of opium held in Canton, a demand which the British, led by Captain George Elliot , rejected.  Lin then confined British merchants to their factories forcing the British to comply with his demands, and when the British retired to Macau Lin appeared to have won a major victory.

     The British government was now faced with a number of options: they could accept the Chinese position and do business on their terms; they could close down operations in China; or they could fight.  The first two were unacceptable, and the British believed that military force could bring about the changes they sought at limited cost.  Accordingly an expeditionary force was assembled under the control of Admiral Elliot, with his cousin Captain George Elliot as the second in command.

     In June 1840 the British military force arrived and proceeded to conduct military operations in both the south of China and further north.  The gap in military capability quickly led to the defeat of Chinese forces, and in turn led to the opening of negotiations.  Under the Treaty of Chuanpi (Chuanbi) in January 1841, Hong Kong was ceded to Britain.  Paradoxically both governments eventually refused to accept the treaty: not only on the grounds that it was negotiated by subordinates and without the authority of the central governments, but also because, on reflection, the terms were unacceptable to both parties.  Accordingly hostilities broke out once more with the Chinese suffering further military defeats.  Following a brief truce, the war entered a decisive phase when on 27 May 1841 Pottinger, who had by this time replaced Captain Elliot, went on to the offensive and imposed humiliating defeats on the Chinese by seizing important strategic points and cities on the Yangtze river.  Eventually, on 29 August 1842, the Chinese Imperial Government signed the Treaty of Nanking (Nanjing) .  By this treaty Britain achieved its major objectives which included the ceding of Hong Kong, the opening of new ports for trade, the abolition of many of the trade restrictions in Canton and an indemnity to cover the cost of the British military expeditions.

     In fact the British had already anticipated the situation, and George Elliot had moved to Hong Kong as early as January 1841.  The island was well situated for British purposes.  Geographically it was close to the estuary of the Pearl River and hence Canton (Guangzhou); it had a deep harbor for shipping; and it was sparsely populated.  British merchants quickly set up businesses on the island, an administrative framework was established, British laws were introduced, land sales began, and military barracks were built.  However, although British authority was quickly established on the island, it was not until after the signing of the Treaty of Nanking (Nanjing) that the question of Hong Kong's status as a true colony was settled.  

     On April 5, 1843, Queen Victoria used her prerogative to declare Hong Kong a colony under the Order in Council.  She then issued the Royal Charter, which established the office of Governor and the basic executive, legislative and judicial institutions.  These documents formed the core of the constitution of the newly established colony, but they were also supplemented by the Letters Patent and the Royal Instructions.  These were given to the Governor and outlined in more detail the ways in which the various political institutions were to be established, the powers of these institutions and the relationship of the colony to the metropolitan power in London.

     The basic structure of the government was not complicated and followed that used elsewhere in many of Britain's other colonial possessions.  The Governor was given considerable powers of decision making.  He appointed the Executive and Legislative Councils to provide him with advice, but he could overrule any of this advice.  The formal powers of the Governor were formidable, but he was answerable to the Government in Britain should he take undue advantage of those powers.  Any legislation passed in the colony could be overruled by the British parliament.  No Bill of Rights was included in the basic constitution although the freedom of religion was established.  The judicial system was to be based on English Law, but laws based on Chinese customs were permitted providing they were not repugnant to English law.  Also there was no mention of local government.
     Effectively the political structure was designed to provide a simple set of procedures to oversee, but only become minimally involved in, the evolving commercial and social framework.  There were, however, initial problems in the colony particularly with the high incidence of disease and with the difficulties experienced in encouraging further growth in trade.  Significantly the expatriate  merchants formed a powerful and increasingly influential group throughout the nineteenth century, and they were particularly resistant to any increases in government activity which they regarded as harmful to trade.  The local population was initially excluded from participation in politics.  Only grudgingly and slowly were they allowed a limited access to positions of potential influence.

     The relatively stable political climate and the rapid growth of Hong Kong as a base for trade led to an increase in demand for labor.  In the commercial field banks were established, the currency was organized on a more sound footing, the government raised sufficient revenues for its limited purposes and trade eventually prospered.  The colony was primarily seen as an entrepot through which free trade could flow into and out of China.  Indeed the colony was to retain this status and not develop into a manufacturing center of any significance until the latter half of the twentieth century.  There was, however a demand for workers which was to attract a ready supply of cheap labor from the mainland where wages and conditions were less attractive than those in Hong Kong.  The population itself, just over 7,000 in 1841, increased to approximately 24,000 in 1848. With the acquisition of Kowloon in 1860 and further growth on the island the number went up to over 122,000.  The acquisition of the New Territories in 1898 added another 100,000 to the estimated 254,000 already in the colony.  The population was overwhelmingly Cantonese Chinese with all other minorities both from the mainland and other areas making up a very small percentage of the total.     
     Throughout the nineteenth century improvements in social conditions failed to keep up with the increase in population.  The Government did little despite its evident awareness of the need for regulation over housing, sanitation and water supplies and the increasing need for basic education, hospital and other social services.  Explanations for this inaction lie partly in the vociferous opposition to the raising of taxes by the expatriate community, partly in the unwillingness of the government to involve itself in matters which it regarded as beyond its purview, and partly in the hostility among many of the local population who regarded any action on housing and sanitation as an imposition upon traditional Chinese culture.

     However, the British were more active in dealing with the potential disputes with China left unresolved by the Treaty of Nanking.  The arguments about the freedom of the British to export goods (particularly opium) into China, and the reluctance of the Chinese to observe the details of the treaty led to the second AngloChinese wars.  These ended with another Chinese military defeat and the ceding of Kowloon and Stonecutters Island to the British in 1860.  The final addition to what is today known as Hong Kong came in 1898 when the Chinese ceded a large area known as the New Territories on a ninety nine year lease.

     The early twentieth century saw continuing growth of the population; from around 500,000 in 1916 to over 840,000 in the early 1930s.  Virtually all the influx came from the surrounding province of Kwangtung (Guangdong) with the numbers swollen by the instabilities which followed the downfall of the monarchy and the setting up of rival groupings in the new republic.  Hong Kong was by no means immune from these upheavals with the nationalist sentiments in China often  spilling over into the territory in the form of strikes and boycotts of British goods in the 1920s.  Instability in China worsened further in the 1930s when the Japanese mounted their attacks on the mainland.

     On 8 December 1941 the Japanese launched an invasion of Hong Kong itself, and quickly overran the British defenses.  The surrender of the colony took place on 25 December 1941.  The population of the colony which had risen to an estimated 1.6 million was rapidly depleted.  During the period of occupation trade dwindled to a standstill, government operated without any recourse to the needs of the population, and the colony languished.

     With the surrender of Japan in August 1945 the British quickly reestablished their authority over Hong Kong.  Early attempts to introduce reforms in the institutional structures came to nothing.  Certainly the authorities had to face major problems in restructuring the shattered economy and in dealing with the flood of refugees, flocking into the colony from the ever increasing instability on the mainland.  Unemployment was high, housing conditions were very poor, investment was low, and by 1951 Hong Kong was seen by some as a dying city.  The problems, already seemingly insurmountable, were compounded by the triumph of the communists in China in 1949.  Hong Kong's importance as an entrepot for trade to and from the mainland which had formed the bulk of its economic activities virtually disappeared.

     However, the colony was soon to make major gains from the turmoil over the border.  A huge reservoir of cheap labor entered the territory along with an influx of capital and expertise from entrepreneurs fleeing from the new regime in China.  Immigrants  from Shanghai in particular quickly set up textile factories to meet an increasing demand for textiles in Europe and North America.  The economy of the colony began to be transformed into a manufacturing center with almost full employment, rising wages and rising expectations.

     Against this background, however, the terrible social conditions in the colony remained.  The government, still wedded to laissez faire, were reluctant to intervene in the provision of social welfare.  Squatter areas proliferated as new refugees continued to flood into the colony, and pressures on the inadequate education, social welfare and health provision gradually increased.  In 1954, following a huge fire in one of the major squatter areas the government did introduce the first public housing schemes, but even there the provision was basic in quality and minimal in scope.

     The government also saw no reason to change the political system in anything but the most minor and incremental fashion.  Its concept was that of benign paternalism firmly rooted in nineteenth century thinking.  The Executive and the Legislative Councils were nonrepresentative and the civil service paid little attention to public opinion or the rising Chinese middle classes.  These local elites,which had hitherto been only partly accommodated, became anxious to play a part in decision making on a more equal footing with the traditional expatriate elites.

     The complacency of the government was heavily challenged by the riots of 1966 and 1967.  The 1966 riots were ostensibly over a minor local issue but reflected a wider dissatisfaction, particularly among the young, over the conditions in the territory.  The 1967 riots were much more violent and were an overspill from the turmoil on the mainland caused by the Cultural Revolution.  Both prompted the government to rethink its traditional assumptions, and to introduce political reforms.

     These reforms which were to remain in place, with only incremental improvements until the early 1980s, did not however envisage representative government in the form of an elected and accountable system.  It was argued that there was no real demand for this in the territory.  Rather they moved towards government by consultation and, it was hoped, consensus.  Local elites were drafted on to advisory bodies and consulted over major policy proposals; localization of the civil service and the Legislative and Executive Councils was speeded up; and public opinion was more carefully monitored.

     These reforms, minor though they were, succeeded in removing many of the most pressing political grievances in the colony.  The government in London which had rarely intervened in the internal affairs of the colony was to grant, with very rare exceptions, virtual autonomy over the affairs of Hong Kong retaining only a say in the external matters which affected the territory.

     Even more significant were three other major changes that were taking place.  The first was the substantial rate of economic growth in the late 1960s and the 1970s.  The colony's manufacturing base widened, from its reliance on textiles, into watches, plastics, electronics.  The service sector also grew considerably, with Hong Kong becoming a major financial center.  The Gross Domestic Product, despite occasional lean years, averaged a growth rate of 10%.

     The second major change was the arrival of a dynamic and reformist governor, Sir Murray MacLehose.  MacLehose introduced a major public housing program that was eventually to provide shelter for nearly half the population; he increased educational provision; hospital and health services were improved; and the social and community services were expanded.  He also tackled corruption which by the early 1970s had reached serious proportions in the public sector in general and the police force in particular.  In many respects the period 19671979 was one of political stability combined with a prosperity undreamed of previously in Hong Kong.

     The third set of changes in the 1970s occurred outside the territory in the People's Republic of China.  The Cultural Revolution was largely a spent force by the early 1970s, and the government in Peking (Beijing), slowly at first, but more rapidly as the decade wore on, determined on a more liberal economic course.  The new policies included the so called "four modernizations" and the setting up of Special Economic Zones including one immediately to the north of Hong Kong in Sham Chun (Shenzhen).  Tensions and crises emanating from the mainland also now assumed less significance.  Relations between Britain and the People's Republic of China showed greater reciprocity and the time seemed ripe for some opening of negotiations on the future of the colony.  This future had to be discussed given the diminishing period before the point in 1997 when the New Territories, leased to Britain in 1898, were due to return to China.
     So it was that in 1979 the then Governor Sir Murray MacLehose visited Beijing and raised the question of the settlement of the 1997 issue - an issue that had not been formally discussed at any level between the two governments previously.  The scene was now set for substantive negotiations, the outcome of which was an agreement ending British administration totally in 1997 and the reversion of all of the colony to the People's Republic of China.

     The actual negotiations took place from 1982 to 1984 between the governments of the People's Republic of China and the United Kingdom of Great Britain and Northern Ireland.  The citizens of Hong Kong were excluded from the talks and were effectively faced with a fait accompli on their conclusion.  Only the traditional elite in the colony were consulted or were aware of the progress of negotiations.  After a most difficult period the question of sovereignty was settled in China's favor and Britain had to accept that administration of the colony would revert in 1997 to the People's Republic of China.  The document which emerged was entitled "A Draft Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the future of Hong Kong" (26 September 1984). That document, more commonly referred to as the Joint Declaration was duly endorsed by the legislative bodies in London and Beijing in the same year.

     Its provisions were to allow a high degree of political, economic, judicial, and social autonomy to the Special Administrative Region which would be created in 1997 under the overall sovereignty of the People's Republic of China.  In particular, the government was to be made more representative than hitherto, and socialism was not to be introduced for at least fifty years after the handover of power.

     Because the autonomous nature of the system had apparently been guaranteed there was, at first, little overt anxiety in Hong Kong, where many of the increasingly articulate middle classes were relatively optimistic about the establishment of a more representative government in which they could play a part.  Certainly the rapidly emerging group of local Chinese liberals expressed a desire to guarantee and promote a system which was modelled broadly on capitalist economic principles and which promised minimal interference from the communist system on the mainland.  On those two principles there was a high degree of consensus, although there were differences between those who advocated gradual political reforms and those who wanted a fully democratic system in place by 1997.

     Whatever the outcome might be, the Joint Declaration had to be legitimized by the National People's Congress under a Basic Law.  Because the Basic Law was seen by the PRC as an internal matter, it appeared appropriate that it should be drawn up by the Chinese authorities, without the participation of the British Government.  A Basic Law Drafting Committee was set up in 1985 with 59 members of whom 23 were invited from Hong Kong.  That drafting committee submitted its proposals in 1990, and these were duly adopted by the National People's Congress in the April of that year.

     However, the provisions of the Basic Law fell short of what many in Hong Kong had hoped for.  A fully and directly elected Legislative Council was not included, and the maximum percentage of directly elected members allowed would eventually be only 50% of the total.  The Chief Executive would not be directly elected and the Executive Council would be appointed.  Events in the years since the signing of the Joint Declaration only served to underline the unease with which the local population viewed the future of Hong Kong.  Emigration from the territory increased dramatically as uncertainty over the degree of control which might be exercised over the future SAR intensified.

      The Joint Declaration had stipulated that the British would continue to administer the territory until 1997.  At the same time the political system in Hong Kong would continue to function under its colonial constitution.  As a consequence the government in the colony was to come under pressure from a host of sources both external and internal.  Its tentative steps to widen the base of political representation were seen by some as too little and too late, and by others too much and too soon.  Criticized from within the territory, the Hong Kong government had also to deal with a British administration anxious not to alienate Peking (Beijing).  In turn the PRC government was equally determined not to allow full democratic representation, and issued warnings about attempts to bring this about.  There was also considerable disquiet in Hong Kong concerning the unresolved problems left over from ambiguities in the Joint Declaration.  These included such problems as the proposed size of the People's Liberation Army garrison in the territory, the influence the PRC should have over any major economic or political changes which spanned the period before and after 1997, the degree of human rights granted to the territory, and the location and composition of the final Court of Appeal.   

     Matters came to a head in the T'ien-an-man (Tiananman) Square incident in June 1989.  There had been considerable support in Hong Kong for the democratic movement in China which had expressed itself in huge, but overwhelmingly peaceful demonstrations in the colony.  The violent suppression of the democratic movement in Beijing and other cities led to a huge dip in confidence in the territory's future.  This was followed by the PRC authorities labelling some of the Hong Kong supporters of the democracy movement in China as being subversive.  Almost simultaneously, pressure for the granting of the right of abode in the United Kingdom, from all sectors of the local community, which had been building up in the late 1980s, was met with a response by the British parliament granting right of abode for only 50,000 heads of households and their dependents  far short of the figures hoped for in Hong Kong.  The result of these setbacks and of disappointment with the Basic Law was a major increase in applications for emigration to the United States of America, Canada, Australia and New Zealand.

      Internally the government in Hong Kong was under pressure, particularly from the liberal groups to quickly introduce full and direct elections for the Legislative Council, to introduce a full Bill of Rights at the earliest possible opportunity (and certainly before 1997), and to ensure an independent and robust judiciary as a bulwark against any incursions from the mainland after sovereignty was transferred.  The government response was to introduce 18 directly elected seats into the Legislative Council by 1991 and a further 2 in 1995.  The People's Republic of China responded by stating unequivocally that the Basic Law would not allow for a full and directly elected legislative body and was not negotiable.  Direct elections to the Legislative Council which were held in September 1991 showed considerable support for the liberal group, which gained 12 of the 18 seats routing the more conservative business orientated groups and eclipsing the few candidates with proBeijing leanings.

     Other major advances for liberal positions were made with the government introducing legislation for a Human Rights Ordinance in March 1990, despite considerable opposition from the People's Republic of China,abolishing capital punishment (which was on the statute books although never in practice carried out), and decriminalizing homosexuality (1991).

     Throughout the 1980s major changes were also taking place in the economy.  The manufacturing base continued to decline whilst the service sector expanded.  Full employment was maintained and wages went up with the shortage of labor which followed the abrupt halt to immigration from neighboring provinces in 1980.  Hong Kong was also allowed to become a full and independent member of the General Agreement on Tariffs and Trade (GATT) organization and was active in setting up trade missions in many of the world major centers.

      The greatest change, however, came from the huge expansion of the economic relationship with the People's Republic of China.  Imports and exports to the mainland grew massively and reexports showed impressive gains.  A large amount of Hong Kong investment moved into the Special Economic Zone in Sham Chun (Shenzhen) where labor costs and factory space were lower than in the increasingly expensive colony, but this only seemed to increase the general prosperity of the region.  Also despite worrying signs of inflation, the currency, with a stable Hong Kong dollar, linked to the US dollar since 1983, remained relatively stable.

     The government made major efforts to improve education provision, particularly in the tertiary sector.  Attempts were made to increase the training of professionals needed for the advanced sectors of an economy which remained buoyant but which was potentially threatened by a loss of skilled staff through emigration.  Housing provision was improved in the public sector and the New Towns in the New Territories grew rapidly, helped by an increasingly efficient communication system.  Life expectancy was the among the highest in the world.  Corruption in the public service had been brought under control and, with the T'ien-an-man (Tiananman) Square incident becoming less significant, prospects in all but the political sector were not unduly worrying.  Business confidence, undermined by the events of 1989, returned to the colony and the British and Chinese negotiators who had suspended discussions after 1989 returned to discuss the outstanding areas not yet resolved over the Joint Declaration.

      The future of the territory between 1991 and 1997 and beyond is uncertain.  Over five and a half million people are being put under the final authority of an avowedly socialist system in direct contradiction to the capitalist way of life developed in Hong Kong.  The optimists argue that the People's Republic of China will honor the agreements and allow the Special Administrative Region considerable autonomy, thus allowing the Hong Kong "way of life" to continue very much as it did under British administration.  They further argue that the economy will continue to flourish and remain a paradigm for less developed systems to emulate.  The fifty year transition period before final absorption into the People's Republic of China, when the differences will supposedly have withered away, is for many people long enough into the future not to cause too much anxiety.  Optimists would also suggest that the transition on the mainland with the modernization of the economy will lead to the relaxation of control by the communist party and a greater reciprocity between the two systems.

     Pessimists, on the other hand, argue that the People's Republic of China will not allow the system to continue in anything like its present form.  They point to the refusal of the PRC to allow for real autonomy, or to allow full and direct elections to the central political institutions.  Above all they return to the continuing absence of western notions of democratic rule on the mainland.  They further argue that even if the government in (Peking) Beijing does not destroy the system by direct intervention they might just do it by incompetence and a misunderstanding of what is needed to maintain economic growth in Hong Kong.

     It is clearly still too early to predict accurately the set of outcomes upon which unfortunately so many people's futures rest.  If the history of Hong Kong is anything to go by then a cautious optimism is not out of place.  Carved out of a barren rock, with no natural resources beyond its magnificent harbor and its geographical location, it had to rely on the resilience and ingenuity of its people.  The population, which grew so rapidly, transformed Hong Kong into one of the most successful economies in the world able to respond rapidly and efficiently to changing demands.  It remains today a society with a robust free press and media, where the rule of law largely pertains, a highly educated population and a standard of living rapidly approaching that of the developed western systems.  Its crime rate remains one of the lowest in Asia, its life expectancy one of the highest.  There is emerging a new generation of local politicians who seem determined to press for the retention and expansion of pluralistic democratic principles in the future.

     On the negative side the fragility of the economic framework, the nascent political reforms and the societal nexus may find it difficult to absorb too many shocks emanating from the mainland.  It is to be hoped that the authorities in Beijing will be able to reconcile Hong Kong's needs with those of the rest of the People's Republic of China.  As they recognized the importance of Hong Kong in the past, so it is hoped that they can make full use of Hong Kong's potential contributions to the PRC as a whole while at the same time remaining sensitive to the needs of the Hong Kong people.

     We wish Hong Kong well.

     THE DICTIONARY


Aberdeen (Shek Pai Wan).

     A settlement situated on the south east coast of Hong Kong island and named after Lord Aberdeen the British Foreign Secretary at the time Britain acquired the colony.  The community now known as Aberdeen was originally a fishing village, but was also known since the sixteenth century as a base for pirates.  In October 1841 it was selected, along with Happy Valley and Stanley, as one of the first areas for development for town lots.  It became one of the centers for the development of the Chinese deep sea fishing fleets and still retains many connections with the sea.


Aberdeen, George Hamilton - Gordon.  4th Earl of Aberdeen.(1784 -1860)

     British Foreign Secretary in the Tory administration (1841 -1846) at the time of the acquisition of Hong Kong and later Prime Minister (1852-1855). He was opposed to the permanent occupation of the territory stating, in Spring 1842, that the acquisitions made from China  "were not to be regarded in the light of permanent conquest". He saw Hong Kong's worth as particularly dubious if held against Chinese wishes.  His instructions were not followed by Sir Henry Pottinger, soon to be formally appointed as the island's first governor, and on 26 June, 1843 with the ratification of the Treaty of Nanking (Nanjing) Hong Kong was declared a British colony . (See Anglo-Chinese Wars; Nanking (Nanjing) Treaty of; Pottinger Sir Henry).


Acting Governor.

     A position, outlined under Article XVII of the Letters Patent, to provide a temporary chief executive if the governor was absent from the colony.  The Chief Secretary assumes this office when necessary. (See Chief Secretary).


Acts of Parliament.
     A Bill becomes an Act of Parliament after it has been passed by the House of Commons and the House of Lords and received the Queen's assent.  Despite Hong Kong being a colony, acts only apply to the territory where this is specifically stated or implied.  However, even if an act is not specifically operative in Hong Kong, it is likely to be applied if this is in line with opinion in Britain.  The Murder Act of 1967 illustrates the point.  Here the British parliament virtually abolished the death penalty, but this did not specifically apply to Hong Kong.  However, when in 1973 the then Governor of Hong Kong, Sir Murray MacLehose with the agreement of the Executive Council refused to quash a death sentence, he was overruled by the British Secretary of State.

     In Hong Kong bills passed by the Legislative Council are referred to as ordinances rather than acts, but for all practical purposes the two are the same. (See Capital Punishment; House of Commons; Legislative Council; Parliament, British).


Administration.

     Given the government's attachment to a laissez faire stance, for much of Hong Kong's history the extent of government activity and administration was minimal.  Administrators were few in number, generalists in training, and overwhelmingly expatriate non - Chinese in background.  However with the growth of the population, the expansion of the economy and the demand for a better provision of government services after the second world war, the administration expanded rapidly.  It was also restructured following a major report by the international consultants, McKinsey and Co. in 1973.
     Also significant in recent years has been the process of localization of the administration.  Since 1985 only locals have been offered permanent terms at the Administrative Officer (the highest) level.  This process will accelerate as 1997 approaches.  No expatriate may hold the highest office of Secretary of a Branch in the Civil Service in the Special Administrative Region although provision has been made to allow certain expatriates to hold office at lower posts.   (See Basic Law; Local Government; Localization; MacLehose Sir Murray).


Advisory Bodies.

     Attempts to develop a representative system of government have been slow to arrive and limited in aspiration.  Membership of the Legislative and Executive councils has been largely based on government appointments plus functional representation of key interest groups.  More recently the numbers of directly elected members has increased but the legislature is far from being composed of directly elected members based in geographical constituencies which is common in most Western democracies.  An alternative form of representation has developed through the system of coopting representatives of local interests onto the large member of advisory bodies used in the development and implementation of public policy.

     There are now over 400 advisory bodies which advise on such diverse sets of policies as education, journalism, urban planning, banking and a host of other matters.  Their increasing importance is to some extent reflected in their growth in numbers.  In 1950 there were 50; in 1960, 62; in 1970, 100; in 1980, 165: and in 1990, over 200. (See District Administration; Executive Council; Legislative Council; Political System).


Advisory Committee on Corruption.

     A prototype of this important committee was first established in 1956.  It was renamed the Advisory Committee on Corruption in 1958.  Its main function was to advise on ways of dealing with the rising incidence of corruption in the territory and it was instrumental in the setting up of the Independent Commission against Corruption in 1974. (See Independent Commission Against Corruption).


Agriculture.

     Hong Kong's dearth of easily cultivated land has led to a limited role for agriculture in the territory's economy.  Upon their arrival the British found a small population, reliant mainly on fishing and subsistence farming of rice and vegetables.  The growth in population exacerbated this situation and led to an increasing reliance upon external sources, particularly the mainland of China, for the importing of foodstuffs.

     The New Territories, acquired in 1898, had a larger area of cultivable land particularly in the west, and were to retain their rural economy long after this had virtually disappeared in Kowloon and Hong Kong island.  However, in 1972 the government decided to encourage urban development in the New Territories to alleviate the overcrowding of other parts of Hong Kong with the result that agriculture there became even less significant.  

     By 1970 only 2% of the territory's Gross National Product was accounted for by agriculture, and that fell to 1% by 1985 and less than 0.3% by 1989.  By the late 1980s only 2230 hectares of land were under cultivation, with most of that being given over to vegetables and flowers.  Some pigs and poultry are also reared.  Despite the small area under cultivation the territory still manages to provide 34% of its inhabitants' needs for fresh vegetables, 18% live pigs and 37% live poultry.  It was estimated in 1990 that only 6.7% (72 sq.km) of Hong Kong's land area is cultivable, down from 13% in 1954 and 7.8% in 1980 respectively. (See Economy; Trade).


Akers-Jones, Sir David.

     Sir David Akers-Jones was Chief Secretary when the then Governor Sir Edward Youde died in office.  As a consequence he became the Acting Governor from December 1986 until April 1987.  With the appointment of the new Governor, Sir David Wilson, he remained for a short period as special advisor to the new incumbent. (See Chief Secretary; Governor).

American Chamber of Commerce.

     The American Chamber of Commerce was established in the territory in 1969 as a consequence of the growing economic involvement of America in the increasingly important financial and industrial affairs of the territory.  In 1970, for example, the United States accounted for 13% of the territory's imports and 42% of its exports.  To safeguard the interests of American business a formal organization was established, the main aims of which were, and still are, as follows:

1.     To foster the development of commerce.

2.     To promote trade between the United States and Hong Kong and the Pacific Region.

3.     To help maintain demand for United States products exported to the territory and to generally promote American products.

4.      To influence the structure of American trade in the Colony.
     Although the value of trade between Hong Kong and the United States has increased enormously in value its relative importance has declined.  In 1989 8.2% of all imports came from the United States, putting it behind The People's Republic of China, Japan and Taiwan.  However, exports of Hong Kong goods (excluding re-exports mostly from the PRC) to the United States accounted for 32.2% of the total, making it still the territory's most important single market. (See Appendix; Economy; Trade).


American Baptist Mission

     The American Baptist Mission established a Chinese Church at Sheung Wan market as early as 1843.  However, support for the mission in the territory fluctuated, and, with the opening up of China in the 19th century the mission moved out of the territory.  In the 1950s following the establishment of the People's Republic of China, which actively discouraged Christian missions, the organization relocated in Hong Kong.  Its specific function in the early 1950s was to help the mass of refugees who arrived in Hong Kong from the mainland generally, and Shantau (Swatow) in particular.  

     The Baptist mission is not a church in the formal sense of the term.  It also has no schools of its own but it is affiliated to about twenty Baptist churches and supplies teachers to various educational establishments.  It also provides financial aid and social work through the running of two community centers and other agencies. (See Religion).  

Anglo-Chinese Parliamentary group.

     The Anglo - Chinese Parliamentary group is made up of British members of Parliament from all political parties.  It is not a government body and has had little real power over Anglo-Chinese relations.  During the negotiations over the future of Hong Kong prior to the 1984 agreements, its stance was generally supportive of the PRC government.  It tended to underplay the significance of local sentiment when this clashed with the will of the PRC. (See  House of Commons; Joint Declaration; Parliament, British).


Anglo-Chinese Wars.

     A series of wars between the British and Chinese which are sometimes referred to as the Opium Wars (although the second war is also sometimes known as the Arrow war).  Although hostilities first broke out in 1839, war was not formally declared until January 1840.  The conflict was temporarily resolved by the Convention of Chuanpi (Chuanbi) in 1841, when the Chinese government ceded the Island of Hong Kong to the British thus establishing a permanent base for the pursuance of foreign trade.  However, hostilities reopened in February 1841 after the breakdown of further negotiations.  As in the previous year the strategic Bogue forts were occupied and Canton (Guangzhou) threatened.  This led to the Chinese authorities accepting the need to come to terms with the military threat both in the south and further north.  In the Spring of 1842 the British took Shanghai and moved the fleet up the Yangtze (Yangzi) river.  With Nanking (Nanjing) threatened the Chinese sued for peace.  The Treaty of Nanking (Nanjing) was signed on 29 August 1842 on board the HMS Cornwallis.

     The terms of the treaty were harsh upon the Chinese and included even more than the British had aimed for at the outbreak of hostilities.  Some of its more important provisions were:

1.     The ports of Amoy (Xiamen), Canton (Guangzhou), Foochow (Fuzhow), Ningpo (Ningbo) and Shanghai to be opened for foreign trade.  Residents and Consuls representing British interests to be appointed in those ports on preferential conditions.

2.     Hong Kong Island to be ceded to the United Kingdom in perpetuity.

3.     China to pay $6 million in compensation for the opium that had been confiscated in Canton (Guangzhou) in exchange for the “the lives of British subjects?- the ostensible though questionable cause of the outbreak of hostilities in the first place.

4.     The Co Hong monopoly (a guild of Chinese merchants with a virtual monopoly of the Canton trade) to be abolished and foreigners allowed to trade freely.  $3 million  to be paid to British merchants by Chinese merchants to settle outstanding debts.

5.     The Chinese government to pay $12 million to the British for the war (which, arguably, was largely forced upon them by Britain in the first place).

     The Treaty of Nanking (Nanjing) was ratified by both governments on 26 June 1843.  The colony of Hong Kong was thus formally established.

     The second of the AngloChinese wars broke out following an incident in 1856 on the British registered ship the Arrow which was berthed in Canton (Guangzhou). Chinese authorities boarded the ship, imprisoned its crew and charged them with piracy.  This proved to be the spark to ignite the smoldering disagreements between the two nations which had existed since the signing of the Treaty of Nanking (Nanjing).  Since the signing of this treaty the British had tried to expand its provisions but had been frustrated in this by the Chinese.  After protracted and largely fruitless negotiations, hostilities recommenced, and Canton (Guangzhou) was taken by the British forces in 1858.  Further north the military successes of a joint force of French and British pressurized the Chinese to sign the Treaty of Tientsin (Tianjin). Once again the Chinese authorities vacillated, and after further hostilities had broken out the Allied forces took Peking (Beijing) giving the Chinese little choice but to sign the Convention of Peking (Beijing) in 1860.
     In terms of benefits to the British in Hong Kong the Treaty of Tientsin (Tianjin) ceded Stonecutters Island, Kowloon point and Hong Kong Island in perpetuity.  The clear benefits accruing to Britain were the virtual legalization of the opium trade; the expansion of territory onto the mainland (Kowloon) thus making the territory more defensible; and the profits that would be made by the trafficking of “coolie?labor through the colony. (See Bogue, Treaty of; Chuanpi (Chuanbi) Convention of; Nanking (Nanjing), Treaty of; Peking (Beijing) Convention of; Tientsin (Tianjin), Treaty of).


Annual Reports.
     The Annual Reports are published by the Government Information Service and provide information on such matters the economy, constitution, financial and political structure, crime statistics, health and weather patterns for the whole of the postsecond war period.  As government publications the information they contain is usually accurate and detailed, but is subject to government selection and interpretation.   

Aomen.  (See Macau).

     The Chinese Pinyin name for Macau, a Portuguese administered enclave some 40 miles from Hong Kong.  Situated on the western side of the Pearl Estuary it is the oldest colony in the Far East.  It is due to return to Chinese sovereign administration in 1999.


Application of English Laws Ordinance.

     An ordinance (law) passed in Hong Kong in 1966 to clarify the relationship between laws passed in the United Kingdom and their applicability in the territory.  This particular law will be modified in 1997 or before. (See Acts of Parliament).


Appointed members.

     The term "appointed members" was clearly spelt out in the Letters Patent (1917) which in turn were drawn from the Hong Kong Charter (1843) and the Royal Instructions (1917).  The two documents were concerned inter alia with the constitutional powers of the Governor relative to the membership of the institutional bodies in the territory.  These documents allow the Governor, upon the formal permission of the Crown, to appoint members to the Legislative Council and the Executive Council.  In the case of the Urban Council, District Boards and Regional Council power to appoint is given by the respective ordinances.  Until the 1980s this technically meant that all members who were not exofficio were appointed members.  However, despite the technical meaning, the term has often been used to describe non - civil servants who were appointed to the Legislative and Executive Council by the Governor.  

     The importance of these members was reduced slightly in the 1980s, when from 1982 an indirectly elected element was introduced into the District Boards and, from 1985, the Legislative Council.  After 1997 there will be no appointed members in the Legislative Council, but appointments to the Executive Council will remain in the hands of the Chief Executive. (See Basic Law; District Administration; Executive Council; Legislative Council; Letters Patent; Regional Council; Urban Council).


Archaeology.

     Archaeological evidence suggests that the first settlement of Hong Kong came 6000 years ago in the Neolithic period.  The earliest inhabitants of Hong Kong were related to the Bacsonial people of South East Asia, themselves successors to the Pleistocene gatherers known as Hoabinhian.  There are, however a growing number of scholars who believe that the prehistoric cultures within the South China region had evolved locally and independently of influences from outside the area.

     Recent excavations have revealed two main neolithic cultures, the first showing both coarse cordmarked pottery and fine pottery sometimes painted and decorated with incised lines and perforations.  In the second and more modern phase, beginning in the third millennium B.C., the artifacts are more sophisticated with polished stone tools, and ornaments such as rings, in a range of sizes made from quartz and other suitable stones.

     The final phase in Hong Kong's prehistory was the Bronze age spanning the 2nd millennium B.C.  Although bronze artifacts were not in common use several good specimens of weapons, tools and fish hooks have been excavated.

     Although the linguistic and ethnic origins of the ancient peoples is not known, the earliest Chinese records speak of a maritime people inhabiting the South Eastern seaboard who were known as the Yueh.  These people almost certainly made the rock carvings (unique to Hong Kong) at various sites in the territory such as Shek Pik, Kau Sai, Po Toi, Cheung Chau , Tung Lung, Big Wave Bay, and Wong Chuk Hang.

     The military conquest of the area by the Ch'in (Qin) (221-207 B.C.) and the Han (Han) (206 B.C.-220 A.D.) had a major influence on the population of the territory.  Coins have been discovered, but the most important discovery was the Han (Han) tomb at Lei Cheung Uk in 1955, thought to relate to the middle Eastern Han (Han) period.

     To date remains from later periods are scarce.  Recent work has given some clues about life under the T'ang (Tang) dynasty (618 A.D.- 907 A.D.).  Evidence has come largely from the study of the lime kilns which obviously were of some importance given their numbers.  There are also links with the Mongol incursions and the last period of the Sung (Song) dynasty in the 13th century.  Inscriptions, coins and celadon of Sung (Song) type have been found on various sites such as Tin Hau, Nim Shue Wan, Lantau, Shek Pik and Mai Po.

     The most recent digs are beginning to throw fresh light on events in Hong Kong during the Ming (Ming) dynasty (1368-1644) and the Ch'ing (Qing) (1644-1911). Two of the most interesting excavations were at Penny's Bay where substantial quantities of Ming (Ming) export porcelain were found and on Tung Lung Island where a Ch'ing (Qing) period fort gives fascinating details of the internal arrangements of the fortification and the everyday utensils of a remote garrison during the final stages of Imperial China.

     One of the great problems facing archaeology in the territory is the extent of construction work taking place.  With the development of the New Territories in general and the smaller islands in particular there is much concern that many sites not yet discovered might be lost forever. (See Ch'in (Qin) Dynasty; Han (Han) Dynasty; Lei Cheng Uk Tomb; Ming (Ming) Dynasty; Sung (Song) Dynasty).


Architecture.

     Early "colonial" building, both public and private, followed European examples of nineteenth century NeoClassicism, Baroque or Victorian Gothic, with architectural adaptations such as colonnades and verandas to suit the climate.  The oldest of the few remaining examples in Hong Kong is Flagstaff House, built in 1846 as the headquarters for the British Military Commander.  Flagstaff house has since been converted into the Museum of Teaware.

     Indigenous rural architecture dates mostly from the Ch'ing (Qing) Dynasty (16441912) and was built with the vernacular characteristics of Southern China villages in design, materials, decoration and fung shui (wind and water) principles.  Some village buildings have been declared "historical buildings" but diminishment of the agrarian life style and urban growth patterns have affected much change.

     Temples to the Chinese deities and villas for the prosperous Chinese were built in the Chinese style although the latter often adopted a mixture of East and West.  Other religious architecture followed accepted practices of respective cultures.

     At the turn of the century, major reclamation and consolidation of Hong Kong as an important port gave rise to a new business center of commercial and public buildings in neoclassical or baroque splendor, replacing much of the vernacular "shophouse" style.


     Contemporary architecture in Hong Kong is notable for the large scale of concentrated developments in both commercial and residential sectors as redevelopment programs in the 1970s ushered in high rise buildings, hotels and indoor shopping malls including the largest interconnected precinct in the world (Ocean Terminal/Ocean Center).

     Huge housing projects were a common feature of the government's new towns program, introduced to meet the demands of a rapidly expanding post-war population.  Clusters of high rise apartment blocks springing from previously rural settlements now dominate the landscape of the New Territories.  About 95% of the residential buildings in Hong Kong are apartments and over half the population live in government subsidized housing.

     The attempt to maximize the development potential of urban sites has in the context of Hong Kong's competitive society provided an arena for the economic power of developers to flourish often at the expense of aesthetic values.  More recently, however, a new set of aesthetics has penetrated the local architecture, not least of which are several buildings of international repute such as the "High Tech" crafted Hong Kong and Shanghai Bank (1986) by Norman Foster and I.M.Pei's Bank of China built shortly afterwards.  The Bank of China is a symbolic megastructure which at the time of its construction was the fifth tallest building in the world.


Armed Forces.

     One reason Hong Kong was acquired as a colony was to allow elements of the British armed forces to be permanently stationed in the area in order to promote and defend British interests in China.  A naval dockyard and army garrisons were quickly set up not only to defend Hong Kong, if necessary, from external attack, but also to provide a base from which expeditions could be sent to China.  The further extensions to the colony in 1860 and 1898 were also partly based on strategic considerations.  The harbor was protected for naval vessels and extra territory allowed a defence in depth against any possible attacks on Hong Kong from overland.  In 1900, for instance, Hong Kong was used as a base for sending units to the mainland to deal with the Boxer rebellion.

     These defenses were, however, of little use when in 1941, despite the presence of a defence force of 30,000 men, the colony rapidly fell to the Japanese invading forces.  The battle began on December 8 and was concluded with the surrender of the British forces on December 25.

     With the defeat of the Japanese in 1945 the British presence was reestablished.  It was even briefly strengthened in 1949 in response to the victory of the communists in China.  However it was soon acknowledged that resistance to a determined attack by the People's Liberation Army was not feasible.  Throughout the 1950s there was a rundown of British forces.  In 1958 the naval dockyard was closed with the ships withdrawn to Singapore.  In 1975 the British government further reduced the size of the army, and between 1976 and 1979 the strength of the armed forces was as follows:  4 Infantry Battalions ( three Gurkha and one British), 1 Gurkha Engineering Squadron, 5 naval patrol craft and 1 Royal Air Force Helicopter squadron.  A further agreement concluded in 1975 established that the Hong Kong government should shoulder a percentage of the cost of maintaining a garrison in the colony.

     Under the 1984 agreements on the future of Hong Kong the British garrison was to remain in the territory until 1997.  Its role until the complete withdrawal is as much a political as a military statement.  It serves to underline the British administrative presence and commitment in the transition period leading up to 1997 but it is not intended as a military deterrent to the People's Republic of China.  It also had an important, though declining, role in patrolling Hong Kong's land and sea borders to restrain illegal immigration into the territory.  (This role is to be taken over by the Royal Hong Kong Police from 1992).  In the late 1980s the garrison was slowly depleted and under the terms of the 1984 agreements it will be completely withdrawn when the territory becomes a Special Administrative Region of the People's Republic of China.

     After 1997 units of the People's Liberation Army (P.L.A.) will be stationed in the territory but their size, composition and precise location is not yet established. (See Basic Law; Gurkhas, Brigade of; People's Liberation Army; Second World War).


Arrow War.

     The ostensible cause of the war between the British and Chinese which led to the Treaty of Tientsin (Tianjin) in 1858 and the Convention of Peking (Beijing) in 1860 was an incident involving a ship called the Arrow.

     The incident was trivial in itself.  Under an ordinance passed in Hong Kong in 1855 Chinese owners of ships who had registered their ships with the colonial authorities were allowed the protection of the British flag as if their ships were British owned.  One ship which took advantage of these considerable benefits was the Lorcha Arrow, which had a British captain but was Chinese owned.

     At this time piracy was rife in the area and the Chinese authorities in Canton (Guangzhou) suspected that the Arrow was being used for questionable purposes.  They boarded the ship in the Autumn of 1856 arrested the crew, charged them with piracy and imprisoned them.  The British quickly responded by demanding an apology from the Chinese and, in the absence of a response, took an imperial junk hostage.  The Chinese authorities pointed out that no British flag was flying when they boarded the Arrow - a point endorsed later by the crew.  They also established that the registration of the ship had expired and nowhere in the treaty of Nanking (Nanjing) did the navy have a right to take Chinese ships hostage.  These justifiable protests could not, however, avert the outbreak of hostilities which are often referred to as the Arrow war. (See Convention of Peking (Beijing); Nanking (Nanjing), Treaty of; Tientsin (Tianjin), Treaty of).


Assessment Offices.

     It has always been difficult to gauge public opinion in Hong  largely because of the absence of direct elections and the refusal of the authorities to countenance referenda on major issues.  In the period 1984/1985 the government set up an Assessment Office to try and measure the reactions of the public to the agreements concerning the future of Hong Kong.  The Assessment Office, which was staffed by civil servants, was subject to independent monitoring .  The small number of submissions received from individuals and organizations showed a cautious acceptance of the proposed agreements.  In 1987 another assessment exercise was undertaken by the Survey Office to measure reaction to the proposals for the future development of representative government in Hong Kong.  In the future such devices are unlikely to be developed further, as the People's Republic of China does not favor such formal means of measuring public reaction to political initiatives. (See Joint Declaration).


Attorney General.

     A position in the administration of Hong Kong as the principal adviser to the government on legal matters.  The position was established in the 1840s following the accepted pattern of colonial administration.  Since that time the Attorney General has been an exofficio member of the Executive Council and the Legislative Council.  He is also the head of the Legal Department of the government and is responsible for all prosecutions in Hong Kong. (See Executive Council; Legal System; Legislative Council).


Autonomy.

     Hong Kong is not, and never will be, a sovereign state.  Its status is that of a subordinate entity to a larger sovereign organization.  In formal terms, Hong Kong has had little autonomy over its domestic affairs, and none in its foreign affairs.  In reality, however, particularly since the second world war, the territory has been allowed to run its own domestic policy and has even been allowed limited independence in certain economic aspects of foreign policy.  The agreements on the future of Hong Kong  allow the future Special Administrative Region a high degree of autonomy in many areas such as the economy, its political institutions, its way of life, its currency, its laws and, to some extent, the pursuit of its economic interests in the wider international community.  Indeed the agreements even stipulate that socialism will not be practiced in Hong Kong for fifty years, even though on the mainland no other political system is allowed!  There has been general agreement that without a high degree of autonomy granted by the Chinese authorities the territory could not continue to function as one of the great financial, banking and economic centers of Asia. (See Basic Law; Constitution; Joint Declaration; Political System).


Banks.

     Hong Kong's first bank, a branch of the Oriental Bank, was opened in 1845 shortly after the colony was acquired by the British.  This bank issued its own notes which twelve years later were recognized as legal currency.  Other banks quickly followed, such as the Chartered and Mercantile Bank in 1857 and the Hongkong and Shanghai Bank in 1864.  The latter was locally based, and did much to smooth financial transactions both within the colony, and between Hong Kong and China throughout the nineteenth and twentieth centuries.  As the colony expanded in importance after the second world war the banking sector assumed great significance.  In 1955 there were 34 incorporated banks in the territory, but by 1970 this had grown to 70.  With the opening up of the People's  Republic of China under the "four modernizations", the number increased further, thus reinforcing the reputation of Hong Kong as a major financial and banking center.  The number of licensed banks rose from 88 in 1978, to 113 in 1980, and to 165 in 1989.
     In the absence of a central bank the Hongkong and Shanghai bank and the Standard Chartered Bank issue the local currency.  Under the agreements between the British government and the government of the People's Republic of China, concluded in 1984, the territory will still be allowed to authorize designated banks to issue the local currency. (See Currency; Economic System; HongKong and Shanghai Banking Corporation).


Belcher, Sir Edward.

     Captain Edward Belcher was in charge of the detachment of sailors sent by Commodore J. J. Bremer to claim Hong Kong island for the British crown in 1841.  He landed from H. M. S. Sulphur on 25 January at Possession Point.  The possession was formally celebrated the next day by Commodore J. J. Bremer when the flag was raised on the slopes of what was later to be known as Victoria Peak. (See Anglo-Chinese Wars).


Basic Law.

     A document of considerable constitutional significance to Hong Kong.  It grew out of the Joint Declaration signed by the governments of Britain and Hong Kong in September 1984.  It was agreed that the British would continue to administer the territory until June 30 1997 after which Hong Kong would become a Special Administrative Region (S.A.R.) under Chinese sovereign control.  The Joint Declaration stipulated that a Basic Law would be drafted and eventually promulgated.  Such a document would outline and expand upon certain matters stipulated in the Joint Declaration and form the basis of the territory's political, economic, social and judicial arrangements for the next fifty years.  It also had the function of outlining more precisely the relationship between the central government in Peking (Beijing) and the local system.  A Basic Law Drafting Committee was set up in April 1985 with a membership of 59, of whom 23 were from Hong Kong and the remainder from the mainland.  Another committee, called the Basic Law Consultative Committee, was established in December 1985 to collate Hong Kong opinion.  The latter committee was much larger (180) and drawn from a broad cross section of the community.  After two draft proposals in April 1988 and February 1989, the final version was ratified by the National People's Congress on April 4 1990.  It is scheduled to come into operation as of July 1 1997.

     The Basic Law covers the following areas:

1.     General principles.
2.      Relationship between the central authorities and the Hong Kong Special Administrative Region.
3.       Fundamental rights and duties of residents.
4.       The political structure including the roles of the Chief Executive, the executive authorities, the legislature, the judiciary, the district organizations and public servants.
5.       The economy including public finance, monetary affairs, trade, industry and commerce, land leases, shipping and civil aviation.
6.  Education, science, culture, sports , religion, labor and social services.
7.  External affairs.
8.  Interpretation and amendment of the Basic Law.
9 Supplementary provisions.
10.  Three annexes relating to the selection of the Chief Executive, the formation of the Legislative Councils and Executive Councils and the national laws to be applied in the Hong Kong S.A.R.
11.  Various other decisions relating to the methods of formation of the first government and the first Legislative Council of the S.A.R. (See Bill of Rights; Constitution; Economic System; Joint Declaration; Sovereignty; Special Administrative Region).


Bill of Rights.

     The Basic Law for Hong Kong which was adopted in 1990 and which becomes operative in 1997 contains certain provisions relating to rights in Articles 2441.  However, it was argued by jurists and others in the territory that this was an insufficient safeguard for the people of the Hong Kong.  The Hong Kong government came to share this view and in October 1989 the Governor, Sir David Wilson, announced that a Bill of Rights would be introduced into the territory which would entrench the provisions of the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights and the International Labor Conventions.  Such a bill of rights would also be superior to all other Hong Kong law.  However the People's Republic of China argued that entrenchment and superiority were not applicable to Hong Kong and that the Bill of Rights could not be binding upon the Basic Law.  Accordingly in March 1990 , following the publication of the Basic Law the Hong Kong government announced that the Bill of Rights would be neither superior or entrenched.  The Bill of Rights, entitled in Hong Kong the Human Rights Ordinance, was finally approved in 1990.  The articles of the ordinance covered the following rights:

1.  Entitlement to rights without distinction.
2.  The right to life.
3.  No torture or inhuman treatment.
4.  No slavery or servitude.
5.  Liberty and security of person.
6.  Rights of persons deprived of liberty.
7.  No imprisonment for breach of contract.
8.  Liberty of movement.
9.  Restrictions on expulsion from Hong Kong.
10.  Equality before the courts and the right to a fair and public hearing.
11.  Rights of persons charged with, or convicted of, criminal offence.
12.  No retrospective criminal offenses or penalties.
13.  Right to recognition as person before the law.
14.  Protection of privacy, family, home, correspondence, honor and  reputation.
15.  Freedom of thought, conscience and religion.
16.  Freedom of opinion and expression.
17.  No propaganda for war or advocacy of national, racial or religious hatred.
18.  Right of peaceful assembly.
19.  Freedom of association.
20.  Rights in respect of marriage and family.
21.  Rights of children.
22.  Rights to participate in public life.
23.  Equality before and equal protection of law.
24.  Rights of minorities.

     It must be added, however, that certain exemptions from the international covenants were included in the Ordinance.  The most significant one makes it clear that neither the Legislative nor Executive Councils need necessarily be elected bodies.  In addition after 1997 when the Letters Patent will no longer apply, the power vested in the Legislative Council by the Basic Law will make it possible to amend any of the provisions of the ordinance by a simple majority. (See Basic Law; Executive Council; International Covenant on Civil and Political Rights; International Covenant on Economic and Cultural Rights; Legislative Council).


Black, Sir Robert.  (1906 )

     Governor of Hong Kong from January 1958 to March 1964.  He helped to oversee a period of rapid economic growth of the territory.  In March 1958 he announced to the Legislative Council that, while Britain still exercised formal authority over the territory, there would be considerable autonomy granted in the administrative and financial fields.  British authority would normally only be exercised in the conduct of foreign policy. (See Government, British).

Blair Kerr Reports

     Milestone reports in the attempts to counter the widespread corruption in Hong Kong society associated with the great economic expansion of the 1960s and early 1970s.  The reports, which were named after a High Court Judge who investigated a case of a senior policeman accused of accepting bribes, were published in September 1973.  Corruption was recognized to exist on a wide scale in the community, and previous efforts to deal with it were seen as clearly inadequate.  As a result of the reports the policeman in question was eventually extradited from Britain, arrested and imprisoned.  More significantly they laid bare the extent  of corruption and led to the creation in 1974 of the Independent Commission against Corruption, a body with considerable powers independent of the police, to investigate and prosecute corrupt persons. (See Godber Affair; Independent Commission Against Corruption).


Blake Sir Henry (1840-1918).

     Sir Henry Blake was Governor of Hong Kong from November 1898-November 1903. He arrived a few months after the New Territories had been leased to Britain for ninety nine years by the Chinese government. He quickly stamped British authority by despatching troops to put down Chinese resistance in the New Territories and removed Chinese imperial troops from Kowloon City. He was also active in bringing about a major set of improvements in the standards of housing and sanitation in the colony. He was replaced by Sir Henry May. (see Health; Kowloon Walled City; New Territories).


Blockade.

     The "blockade" which took place between 1867 and 1886 reflected, and contributed to, the gradually worsening relations between China and Hong Kong.  Its origins lay in the troubled questions of who was to control the burgeoning opium trade and who was to benefit from the profits made.  Under the agreements reached between the British and Chinese authorities in 1860, foreign trade was confined to the Treaty Ports.  But Hong Kong merchants were circumventing this agreement and acting as distributors of European goods with other areas along the coast.  The Chinese complained to the Hong Kong government who replied that it was not their responsibility to suppress this illicit trade.  In this light the issue concerned control of the local distributive trade between Canton (Guangzhou) and the colony.  The Chinese authorities levied a charge of $46 a chest of opium, from two sets of tax controls, and were unwilling to lose a potentially large sum.  How large can be gauged by Chinese estimates that the smuggled opium into Hong Kong was in the region of thirty to thousand chests per annum.  Even allowing for this to be an inflated figure the sums involved must have been considerable.

     Accordingly, in November 1867 Chinese revenue cruisers which had been operating at the entrance to Hong Kong harbor seized a junk carrying opium.  Despite strong objections from the Hong Kong Governor, MacDonnell, this was followed by the setting up of nine Chinese marine and land customs stations around the colony, with all native vessels being subject to search.  The British government refused to support the Governor, who was under considerable pressure from the merchants in the territory, and a commission was eventually set up in 1876 which resulted in attempts to reach a compromise over the issue.  During this period trade was increasing at a rapid rate: the number of ships entering Hong Kong grew from 1,896 in 1866 to 3,214  in 1881.  The junk trade, however, began to decline after 1879 under the influence of the blockade, thus increasing pressure for some type of settlement.  In 1886 another, and more realistic, compromise was reached with the Chinese entering an agreement whereby all opium entering Hong Kong harbor was to be controlled by the Harbormaster.  None was to be exported except under rigid controls, and the revenues would be collected by the British and remitted to China.  These revenues would be collected by the Chinese Maritime Customs, whose head was British, and an arrangement was to be set up in China itself to sell opium duty certificates at 100 taels per chest.  This agreement was formalized by the Opium Ordinance in March 1887.
(See Drugs).

Boat People.  (See Vietnamese Refugees).

Bogue, Treaty of.

     This refers to a supplementary treaty to the Treaty of Nanking (Nanjing, 1842), which was signed between the British and Chinese governments in 1843.  The main provisions of the treaty were as follows:

1.  British subjects accused of committing offenses in China were to be tried under British law.

2.  A 5% tariff was to be placed on all goods.

3.  The "most favored nation" status that might be granted to any other nation would also automatically apply to the British.

     This treaty combined with the Treaty of Nanking (Nanjing), was regarded as extremely humiliating by the Chinese authorities.  The provisions of the treaties were to prove a source of continual friction between the two governments and eventually led to the second AngloChinese wars. (See Anglo-Chinese Wars; Nanking (Nanjing), Treaty of).

Bonham, Sir Samuel George.  (1803 1863)

     Governor of Hong Kong from 1848 to 1854.  He succeeded Sir John Davies as Governor and was immediately faced with a financial crisis arising from attempts by the previous governor to charge increased taxes to make the colony self-supporting.  The Hong Kong government, faced with declining land prices and a depressed economy, was running a deficit, much to the annoyance of the British government who refused to increase its subsidy.  Bonham reacted by stringently controlling government expenditure.  All public works were suspended, government posts were cut, and major cuts in military expenditure were imposed.  He did, however, manage to avoid the unpopular proposal to raise taxes in the colony.  Some have seen his financial restraint and low taxation policies as the forerunner of government fiscal policy in later years. (See Governor).


Bowen, Sir George Ferguson.(1821 1899).

     Governor of  Hong Kong between 1883 and 1885.  He is best remembered in his short period of office for the introduction of improved sanitary services to the colony, the widening of a very narrowly based Legislative Council and Executive Council, the strengthening of Hong Kong's garrison through local recruitment and the building of fixed defenses in the colony.


Bowring, Sir John.(1792 1872).

     Governor of Hong Kong from 1854 to 1859.  A fluent speaker of Cantonese who seems generally to have been regarded as a fair person by the local population.  He was however inflexible on the question of the treaties agreed between the British and Chinese, and furthermore was determined to renegotiate them to gain further advantage for the British.  In this sense his efforts can be seen as ultimately contributing, through the Arrow incident, to the outbreak of the second Anglo  Chinese wars. (See Anglo-Chinese Wars; Arrow War).

Brain Drain. (See also Emigration)

     Over the last 150 years Hong Kong has seen a constant flow of people emigrating from its shores.  Since the Second World War the loosening of controls over immigration to such states as the United States of America, Canada and Australia led to several thousand moving to those countries.  The problem was largely alleviated by a net inflow of immigrants to the colony from the People's Republic of China.  

     In the mid1970s some 38,000 persons per year left, but this dropped in the early eighties to 20,000.  However, emigration began to rise as concern grew over the future of Hong Kong following the signing of the Joint Declaration between Britain and China which established the territory's return to Chinese sovereignty in 1997.  In late 1987 and early 1988 it was noticed that the rate of emigration, particularly in the young, professional band was rising at an alarming rate.  In 1987 some 27,000 people left, increasing to 46,000 in 1988.  By 1989 the figure had moved to over 50,000, partly as a result of the suppression of the disturbances in Peking (Beijing).

     Demands were expressed to grant a right of abode in Britain, and calls were made for greater access to preferred destinations in the U.S.A., Canada and Australia.  But the countries concerned largely practiced policies of accepting only the wealthiest and best qualified applicants.

     Emigration was a challenge to the territory as its ever increasingly sophisticated economy required the skills of the very professionals who were leaving.  The government's attempts both to tempt leavers back to the colony and to provide a safety net with the granting to selected groups of a right of abode in Britain for 50,000 heads of households and their families appeared to have little effect on the problem in the early 1990s. (See Basic Law; Stability and Prosperity; T'ien-an-man (Tiananman)).


British Army Aid Group.

     After the fall of Hong Kong to Japanese forces on December 25, 1941 a number of escapees set up a British Army Aid Group in that part of China not controlled by the Japanese.  With headquarters in Kweilin (Guilin) they aided escapees, saved many lives by supplying medicines and gathered intelligence regarding conditions in Hong Kong. (See Second World War).


British Dependent Territories Citizen.

     Until 1963 persons who were born in Hong Kong, or were born to a permanent resident, or who had applied for naturalization having lived there for seven years, were defined as British Citizens.  They were given the right of abode in the United Kingdom.  However, in 1963, under the British Nationality Act, this right was taken away for any future persons registered in this category.  In 1983 under the British Immigration Ordinance, which followed on the 1981 revised British Nationality Act, further restrictions were put on those people allowed to hold a passport under this category. In 1990 there were 3.25 million people with such citizenship in the territory. (See British National Overseas; British Nationality Acts).


British forces.  (See Armed Forces).


British Government.  (See Government, British).


British National Overseas.(B.N.(O).

     This category of citizenship replaced the British Dependent Territories Citizen category discussed above.  It was created by the Hong Kong Act of 1985.  In effect it was a tidying up exercise after the signing of the Joint Declaration on Hong Kong's future status after 1997.  It is useful as a passport and gives access to British Consular protection whilst abroad.  It does not give a right of abode in the United Kingdom, and no person born on or after July 1, 1997 will be entitled to this category status. ( See British Dependent Territories Citizen; British Nationality Acts).

British Nationality Acts.

     Until 1948 persons born in countries owing allegiance to the British crown were entitled to British nationality.  Quite simply this meant that they were able to live in Britain if they wished to do so with no hindrance.  However, with the decolonization process and the creation of the new Commonwealth, made up of sovereign states (e.g.  India, Pakistan), fears of huge immigration into the United Kingdom developed, and restrictions were placed on those who wished to live in Britain.  Hong Kong, of course, was not, and is not, an independent state, and so the British Nationality Acts of 1963 and 1983 were introduced to clarify status and its associated rights.  The Acts removed full British citizenship from those living in the colony.  An interesting comparison can be made with two colonies still under British control in the late 1980s.  In the case of both the Falkland Islands and Gibraltar full British Nationality, with right of abode, was granted. (See British Dependent Territories Citizen; British National Overseas).

Bronze Age.

     This period marks the final stage of Hong Kong's prehistory.  It appeared around the middle of the second millennium B.C.  It does not appear that bronze was in wide use, but specimens of weapons (swords, arrowheads and halberds) and working tools such as axes and fish hooks have been discovered.  It appears that the bronze artifacts were made in Hong Kong as evidenced by the excavation of pottery molds which have been discovered at the Tung Wan site at Shek Pik on Lantau Island.  The pottery of the bronze age is similar to that found in earlier periods.  In addition some finds have been made of pottery fired at a higher temperature leading to vitrification.  This latter is termed "hard geometric" and has a distinctive pattern known as " Kuidragon" or "doubleF". Also stone carvings have been found at a number of sites near to the sea shore which are unique to Hong Kong.

Bureaucracy. (see Civil Service).  

Cabinet.

     The Cabinet is the most important decision-making body in the United Kingdom's political structure.  It is there that the key British decisions relating to Hong Kong were made, and will continue to be made, until the end of the period of British administration.  Until the  1960s specific responsibility for Hong Kong policy within the Cabinet lay with the Secretary of State for Colonial Affairs.  Following the abolition of this post, the Secretary of Foreign and Commonwealth Affairs has taken over this responsibility. (See Government, British; Foreign and Commonwealth Office; Parliament, British).

Caldecott, Sir Andrew.   (1884 1951).

     Governor of Hong Kong from December 1935 until April 1937.  He made little impact on the colony in his brief tenure.  He did, however, increase the number of Chinese at the senior levels of government, and was vigorous in his attacks on the mui tsai (mei zi) system which was prevalent in the colony at the time. (See Governor; Mui Tsai (Mei Zi).


Cantonese.

     Immigration into the territory has always been dominated by movements from the adjacent province of Canton (Guangzhou).  Despite the presence of many other Chinese groups ( e.g. Hakka, Shanghainese) over 90% of the population is of Cantonese origin, and the territory has been greatly influenced by the culture of the region. The dialect spoken by the overwhelming majority has always been Cantonese and not Mandarin (Putonghua). (See Official Language Issue).

Capital Punishment.

     Until the 1960s, when hanging was effectively abolished in the United Kingdom, Hong Kong used capital punishment for certain crimes.  The last hanging took place in 1966, but the punishment was still technically available in the territory until 1991.  In 1973 the then Governor, Sir Murray MacLehose, supported by the Executive Council, refused to pardon an offender sentenced to death for murder. The Governor was, however, overruled by the British Government.  Subsequently, convicted murders sentenced to death have had their sentences commuted to life imprisonment by the Governor. (See Autonomy; MacLehose Sir Murray).

Capitalism.

     The economy of the colony has always been largely organized on capitalist lines.  Indeed much of its economic success has, particularly since the second world war, been widely attributed to the virtues of a free market based on private ownership and the concept of profit. Government intervention in economy and society was certainly limited in the 1950s and 1960s.  However, in the period since the early 1970s the degree of government intervention in the economy, in housing and in social welfare began to increase substantially. (See Economic System; Laissez-faire; Trade).


Carrian Affair.

     The Carrian affair was a major scandal which broke out in 1982.  It resulted from the collapse of a company (Carrian) which had incurred debts running into billions of Hong Kong dollars which it could not meet. Criminal charges were brought against those in the company, but the case was dismissed by the presiding judge on questionable grounds.  The senior crown prosecution officer later fled the territory, but was extradited back to Hong Kong where he was prosecuted and found guilty on a number of corruption charges. (See Independent Commission Against Corruption).

Cathay Pacific.

     Set up just after the second world war, Cathay Pacific rapidly expanded to become the major air carrier in the territory.  Another airline, Dragonair, was established in 1985, but did not seriously challenge the dominance of Cathay Pacific.  In the Joint Declaration, signed between Britain and the People's Republic of China, there was provision for Cathay Pacific to continue to operate from the future Special Administrative Region.


Census.

     Hong Kong held the first census in 1911, and with the exception of 1941, they have been held every ten years since.  Partial censuses are also held every five years. As elsewhere, their function is to provide comprehensive information on Hong Kong's population for government use and for general information.  


Central Policy Unit.

      This unit was set up in 1989 by the Hong Kong government.  Often referred to as the " think tank", its major functions are to consider central problems facing Hong Kong in the future and to prepare papers for discussion by government.  It reports directly and in confidence to the Governor, the Chief Secretary and the Financial Secretary.

Certificate of Identity.
     A document made available to those not eligible for the British Dependent Territories Citizen or the British National (Overseas) passport.  It signifies a right of abode in Hong Kong and is used as a passport for purposes of travel abroad. It has never been valid for right of abode in the United Kingdom. (See British Dependent Territories Citizen; British National (O)).


Chadwick Report.

     The Chadwick report which was published in 1882 was named after Osbert Chadwick, a former engineers officer, who was sent by the British Colonial Office to look into the sanitary and health conditions in the colony.  Despite the constant outbreaks of disease and the outrageously bad sanitation conditions, the government had taken little action even in response to major criticisms in the territory.  The report's provisions called for major improvements in such areas as drainage systems, water supply, building regulations, toilets, baths and markets. Its recommendations led to the creation of the Sanitary Board that was later to develop into the Urban Council.  Unfortunately much of the report was not acted upon promptly, and cholera in particular continued to claim lives.  Even more disturbing, bubonic plague was to break out in 1894. (See Health; Sanitary Board; Urban Council).

Chamber of Commerce, Chinese General.

     The Chinese Chamber of Commerce begin to operate in 1900. From its inception it was an organization of local firms, businessmen and professionals. After the 1949 revolution in China it developed close links with the mainland, particularly in the field of trade and in 1957 was authorized to issue invitations on behalf of the Chinese Export Commodities Fair authorities.  It was seen by the Hong Kong government as a predominantly proPeking (Beijing) organization, and it was given a functional constituency in the Legislative Council in 1985. (See Functional Constituencies; Legislative Council; Pressure Groups).

Chao Tzuyang (Zhao Ziyang).

     Chao Tzuyang (Zhao Ziyang) was General Secretary of the Communist Party of China from 1987 until his removal following the events of June 1989 and the T'ien-an-man (Tiananman) massacres.  He was widely regarded in Hong Kong as constituting part of the liberal wing of the communist party in the PRC, and consequently was seen as a force for progress.  His removal from power was interpreted in Hong Kong as a victory for the more conservative elements opposed to political reform.  (See Communist Party of China; T'ien-an-man (Tiananman)).

Charter of 1843.

     The Charter and Instructions formed the constitutional basis for the governance of the territory.  The Charter was despatched on April 5 1843 to Sir Henry Pottinger who administered the Territory from August 1841 to June 1843 and was Governor from June 1843 to May 1844.  It was read publicly on June 26 1843, the date on which Hong Kong was proclaimed a British Colony with the ratification of the Treaty of Nanking (Nanjing).  The basic Charter was complemented by two sets of instructions which expanded upon the original charter and which were sent on April 6 and June 3 1843.

     The charter and its instructions laid down the following:

1. The establishment of Hong Kong as a Crown Colony.

2. The establishment of the position of Governor (a Chief Executive), an Executive Council and a Legislative Council.

3. The terms of appointment, powers, constraints and membership of the bodies.

4. Legal provisions and grants of land and financial responsibilities.

5. The powers of the Hong Kong government in relation to the British government.

     The Charter was the basic document relating to the establishment of the colony and was to be amplified by the Letters Patent, Royal Instructions and by precedent over time.  It ceases to be operative in any sense after June 30 1997. (See Letters Patent; Nanking (Nanjing) Treaty of; Pottinger, Sir Henry).

Cheong Ah Lum.

     The owner of the E Sing bakery in the 1850s.  In January 1857 antiBritish feelings were running high in the territory owing to the deterioration in relations between the British and Chinese.  The British attack on Canton (Guangzhou) had been initially repulsed by the Chinese and anti-foreign sentiment spilled over to the colony.  At this time westerners eating bread suddenly became ill, and it was discovered that large quantities of arsenic had been added to the other ingredients.  Ah Lum was tried and acquitted, but 52 of his Chinese employees were deported. The baking of bread was taken over by a British business.  No westerners died because the large amounts of arsenic caused vomiting so quickly that little was absorbed!  Cheong Ah Lum wisely quit Hong Kong before further claims for damages could be filed against him. (See Anglo-Chinese wars; Arrow war).



Chiang Kaishek (Jiang Jieshi) (1887 1975).

Chiang Kaishek (Jiang Jieshi) was a Chinese soldier and statesman who headed the Nationalist or Kuomintang (Guomindang) government in China from 1928 until his defeat by the communists in 1949.  He retreated to Taiwan where he set up a nationalist government in 1950, claiming that his regime was the de jure government of the whole of China. (See China, People's Republic of; China, Republic of; Kuomintang (Guomindang)).

Chief Executive.

     In essence the Governor of Hong Kong exercised the function of a chief executive but was not referred to as such.  The role of the Governor as a chief executive should not be confused with the post to be created after June 1997 which is formally entitled the Chief Executive. The details of appointment procedures and powers given to this latter post are set out in the Basic Law. (See Basic Law; Governor).


Chief Justice.

     The position of the Chief Justice and his office was outlined in the Letters Patent dated 14 February 1917, a document which was amended regularly as circumstances permitted or required.  The role, which has remained largely unchanged since that time, is to act as the senior officer in Hong Kong responsible for the administration of the Judiciary and the Courts.  The Chief Justice is appointed by the Governor on the instructions of the British Crown, but is given the usual safeguards accorded to the judiciary by the Letters Patent to minimize political interference.  In 1988, the first local Chinese Chief Justice, Sir Ti Liang Yang, was appointed.  Under the provisions of the Basic Law promulgated in April 1990 the post will remain in existence after the territory returns to the People's Republic of China. (See Basic Law; Legal System; Localization;

Chief Secretary.

     The position of Chief Secretary was created in 1976 when the post of Colonial Secretary was abolished, although the change was more a change of title than of function.  As head of the Civil Service, the Chief Secretary is in effect second only to the Governor in the administration of Hong Kong's affairs.  He holds a seat as the senior official (government) representative in the Executive Council and the Legislative Council.  He is also chairman of the powerful financial committee of the Legislative Council and has since 1902 acted as the Governor's deputy in his absence. Although not mentioned in the Basic Law it can be assumed that the office will remain in being after June 30, 1997.


China, People's Republic of.

     The People's Republic of China (PRC) was proclaimed by Mao Tse-tung (Mao Zedong) on October 1, 1949 following the culmination of a long civil war and the expulsion from the mainland to Taiwan of the Nationalist or Kuomintang (Guomindang) government.  In 1949 the new government announced that it was a socialist state under the leadership of the Communist Party of China.  The People's Republic of China never accepted that Hong Kong was sovereign British territory and always claimed that they would resume sovereignty over the territory when the "time was ripe".  

     There was no diplomatic representation established between the colony and the PRC in 1949 but the unofficial representative of the PRC in the territory has been the New China News Agency (Xinhua).  (See Basic Law; Joint Declaration; Kuomintang (Guomindang); Mao Tse-tung (Mao Zedong); Sino-British Negotiations; Sovereignty).

China, Republic of.

     The Republic of China was first declared on January 1, 1912 at Nanking (Nanjing) following the revolution which had broken out in October 1911.  Its first President was Dr. Sun Yatsen (Sun Yixian).  From 1928 to 1949 the Presidency of the Republic was held by Chiang Kai Shek (Jiang Jieshi).  In 1949 the nationalist party Kuomintang (Guomindang) was defeated on the mainland and fled to Taiwan.

     Although since 1949 the Republic of China has not had any representation in the colony, on October 10 of every year some supporters of the Republic of China fly the Nationalist flag as a sign of support for the Taiwan government.  However, active membership of any Kuomintang (Guomingdang) party is probably minimal.

     At the time of the negotiations over the future of Hong Kong the PRC hoped that the document might be used for a blueprint for the unification of the "two Chinas", but no immediate breakthroughs occurred.

     Since 1949 there has been increasing trade between Hong Kong and the Republic of China.  In addition much of the trade between the Republic of China and the People's Republic is conducted through Hong Kong on an unofficial basis.  Similarly all Taiwanese entering the PRC have had to pass through Hong Kong. (See Chiang Kai Shek (Jiang Jieshi); Kuomintang (Guomindang); Sun Yat-sen (Sun Yixian); Trade).

Chinese Burial Customs.

     The reverence of the Chinese for the dead was exemplified by the elaborate ceremonies held on a certain fixed day after the death, in order to provide comfort to the soul on its journey to its final destination.  In the Chinese culture seven is thought to be a lucky number so that dates for the commemoration services were fixed on a multiple of seven times seven and lasted over 49 days.  The most important ceremony took place on the 21st day (3x7).  The eldest son paid for the first and third service and the woman of the family the second. The local system required a double burial with the body exhumed, the bones cleaned, and then placed in an urn after seven years.

Chinese Language Issue.

     The question of which language is to be dominant in Hong Kong has been a problem since the inception of the colony.  For the purposes of law, government and international business English has dominated. This was despite the fact that the vast majority of the population neither spoke nor understood English.

     Following the riots of 1966 and 1967 a committee was set up by the government to look into the problem of language policy, but its progress was slow.  Eventually the Official Language Ordinance was announced 1974.  This gave Chinese an official and equal status with English.  After 1997 the Chinese language will prevail over the English in the case of any conflict.  However, there is confusion on the question of whether the form of Chinese used will be Mandarin (Putonghua), the official Chinese language in the People's Republic of China, or the local Cantonese dialect spoken in Hong Kong. (See Basic Law).


Chinese Temples.

     The oldest temple in Hong Kong is the Buddhist monastery at Tuen Mun which was founded in the fifth century.  Other temples were founded in honor of different deities.  The most famous and the oldest is the temple at Joss House Bay, built in the Sung (Song) period 969-1279 built for the worship of Tin Hau, the goddess of the fishing community.  Other famous temples include the Man Mo Temples dedicated to the gods of literature (Man) and war (Mo). The god of literature is worshipped by scholars and civil servants and the god of war by policemen, pawnbrokers and antique dealers.  The position and orientation of temples is influenced by the principles of fung shui (literally translated wind and water).  The roof is usually green or yellow with rounded tiles, and stone lions often guard the door. (See Tin Hau Festival).


Ch'in (Qin) Dynasty (221-207 BC).

     This dynasty ruled China from 221 BC until 207 BC. Under this dynasty China was unified, the Great Wall was completed and an efficient system of local government was introduced. The Hong Kong area was conquered by the Ch'in (Qin) in 214 BC with the region later divided into prefectures and counties.  Coins from this period have been excavated in Hong Kong and it is believed by some that salt farms were put under imperial control. Imperial interest in the South was not concerned with the colonizing of the area but rather used it as a base for traders with soldiers protecting imperial interests. With no permanent settlers the local inhabitants were left very much alone.

Ch'ing (Qing) (1644-1912).

     The Ch'ing (Qing) dynasty ruled China from 1644 until its overthrow and replacement by the Republic on January 1, 1912. Sometimes referred to as the Manchu dynasty, as the conquerors came from Manchuria, it replaced the Ming (Ming) dynasty which had ruled since 1368.  In the South the supporters of the Ming continued to operate and attack coastal areas. In particular the pro-Ming figure Koxinga, based in Taiwan, threatened the important coastal areas around Kwangtung (Guangdong) province. The insecurity of these areas was further compounded by regular attacks by pirates.

     Faced with this problem the government decided to take drastic action. To consolidate their authority they ordered, in 1661, that all the coastal areas in the province should be evacuated to 50 li (approximately 12 miles) inland. All civilians were forcibly moved out and their houses destroyed. This caused starvation and death in the Hong Kong area but the draconian measures, combined with military expeditions removed the threat from the pro-Ming rebels. It also cut down on the predations of piracy, at least temporarily.

     In 1669 the authorities felt safe enough to remove the coastal evacuation order. The local inhabitants, in gratitude for the efforts of the Governor of Kwangtung (Guangdong) and the Viceroy deified them. In the meantime the imperial revenues were in need of replenishment so settlers were encouraged to move back into the area. The new settlers provided badly needed income to the government from salt and agriculture. Many of the new settlers were Hakka people from further north, who entered the area along with the older Punti (local Cantonese).

     The Ch'ing (Qing) dynasty continued to administer the Hong Kong area as part of the San On (Xin-an) County in the province of Kwangtung (Guangdong). This southern province was the first in which the European traders made their impact. In the eighteenth century attempts by the Chinese government to control the Europeans seemed reasonably successful but the nineteenth century proved to be disastrous for the dynasty. The numerous and unsuccessful wars, both civil and against the colonial powers led to concession after concession, each time undermining the legitimacy of the dynasty.

     In the end, exhausted by the unequal struggle, and faced by growing internal dissention the dynasty simply collapsed and was replaced by a republic. (see Anglo-Chinese wars; Arrow Wars; Blockade; Bogue Treaty of; Convention of Peking (Beijing);  Nanking (Nanjing), Treaty of; New Territories; Opium War).


Ching Ming Ceremony.

     The Confucian festival observed in Hong Kong as one of the two occasions to honor the dead.  Its origins can be traced back to the Han (Han) Dynasty (206 BC220 AD).

Chinnery, George (1774 1852).

     George Chinnery painted portraits and figures in landscapes in the early 19th century, and was the most influential of the "China trade" painters who worked in the region.  He spent 27 years in or around Macau, and his works vividly capture the life and times of the period. Other painters painting in the East included W. J. Huggins ( 17811845) Auguste Borget (18081877) Thomas Boswall Watson (18151860) and Walford Thomas Bellairs (c 17941850).  Mention should also be made of the interesting works of Kuan Tso-lin, (Guan Zuolin) and his two sons Kuan Ch'io-Ch'ang (Guan Qiochang) (18301860) and Kuan Lia-ch'ang (Guan Liachang), all of whom were often imitative of Chinnery's style.


Chou En-lai (Zhou Enlai) (1898-1976).

     The first Premier of the People's Republic.  Chou En-lai (Zhou Enlai) was more pragmatic than Mao Tse-tung (Mao Zedong) and was the main architect of Chinese foreign policy until his death.  It was he who mitigated the worst effects of some of Mao's policies such as the "Great Leap Forward" and the Cultural Revolution.  He also introduced the Four Modernizations (although today most people ascribe the idea to Teng Hsiao-p'ing (Deng Xiaoping)).  Chou (Zhou) was largely instrumental in opening negotiations for the normalization of relations with the United States of America and for better relationships with European countries and, later, Japan. Nearly all his policies have been followed by his successors.  He was, and still is, seen as a major and popular figure in Hong Kong - much more so than Mao Tse-tung (Mao Zedong). (See Cultural Revolution; Four Modernizations; People's Republic of China; Teng Hsiao-p'ing (Deng Xiaoping)).


Chou Nan ( Zhou Nan).

     Mr Chou Nan (Zhou Nan) replaced Hsu Chia-t'un (Xu Jiatun), as the head of the New China News Agency in 1990.  He has an extensive knowledge of the territory gained from his experiences as head of the Chinese team in the negotiations over the territory's future which led to the Joint Declaration of 1984.  He was also an influential member of the Basic Law Drafting Committees for both Hong Kong and Macau.  Finally he was a member of the Central People's Government of the People's Republic of China to whom the Chinese team on the Joint Liaison Group reported. (See New China News Agency).


Christian Industrial Council.

     Established in the early 1970s and made up of protestant Christian organizations, the Christian Industrial Council has been active in attempting to improve the conditions of labor and labor legislation.  On a wider front it has allied itself with reformist movements arguing for more representative government in Hong Kong. (See Pressure Groups).

Christians. (See Religion).

Chuanpi (Chuanbi) Convention of.

     An agreement signed on 20 January, 1841 between Britain and the Viceroy of Kwangtung (Guangdong)  Kwangtzu (Guangzi) following the defeat of Chinese forces at the forts of Bocca Tigris.  The terms were humiliating to the Chinese particularly in the demands for six million dollars to be paid to the British by the Chinese as indemnity; for Hong Kong be ceded to Britain; for British merchants to be allowed to return to trade in Canton (Guangzhou); and for British and Chinese authorities to have official contact on an equal basis.  These terms were repudiated by the Emperor, and the Viceroy was dismissed from his post and deported.  Hostilities then resumed. (See Anglo-Chinese Wars; Elliot, Captain Charles; Nanking (Nanjing) Treaty of).

Civic Association.

      A group created in 1955, with a predominantly expatriate membership, to promote the economic, social, cultural and political welfare of the people of Hong Kong.  Membership today is mostly local and middle class, but it has been overtaken in terms of influence by newer and more vociferous groups. (See Pressure Groups).


Civic Education.

     The idea of civic education stemmed largely from the initiatives of the Hong Kong Education Department in the early 1980s.  Its function was to promote civil awareness in the community in general, and in schools in particular.  The underlying rationale  was to help to foster an identification with the territory and its institutions and an understanding of its relationship with the People's Republic of China. (See Education).


Civil Rights.

     Civil rights are a sub-group of human rights.  In the case of Hong Kong, these in the past have been influenced by the British tradition.  In Britain, unlike the United States for instance, the supremacy of Parliament forbids an entrenched system of civil rights.  However, the Basic Law, which will be active in 1997, constitutionally defines the rights of the citizens of the Special Administrative Region.  These rights are further reinforced in the Human Rights Ordinance of 1990.  However, this latter document is not entrenched, and the People's Republic of China have retained the right to amend or annul this ordinance after 1997 if it is deemed necessary. Also the terms of the civil rights in the Basic Law are subject to change, should this be required by the legislative body in the People's Republic of China. (See Basic Law; Bill of Rights; Joint Declaration; International Covenant on Civil and Political Rights; International Covenant on Economic, Social and Cultural Rights).


Civil Service.

     The branch of government which normally performs the function of administering and executing policy in government.  However, Hong Kong's colonial status has enhanced the power of the civil service considerably.  Its senior officers have held considerable power in the role of executive decision making as well as in the formulation, implementation and administration of policy not least through their membership of the Legislative Council and the Executive Council.  The Basic Law still provides for considerable political power to be left in the hands of the civil service.

     For much of Hong Kong's history the size of the civil service was small, reflecting the government's preference for minimal intervention in the economy and in the provision of services to the community.  At the same time the recruitment into the higher levels of the civil service was limited to European officers.  It was not until 1946 that local officers were enlisted. The first Chinese to enter the administrative class ( the top band) was appointed in 1946, and it was not until 1961 that a Chinese appointee reached a position as head of a Department. In 1951, 54 members or 10.75% of the administrative and senior professional classes were Chinese.

     In the postwar period the growth of the civil service was considerable.  It rose from 17,500 in 1949, to 45,000 in 1959 and almost 80,000 in 1979.  This growth was continued under the Governorship of Sir Murray MacLehose (1971-1982).  Between 1973 and 1983 it grew by a further 71.3% (from 101,793 to 173,788).  Such growth was inevitably accompanied by problems of efficiency and coordination.  The problems were approached by the use of a United Kingdom firm of consultants who were to advise on how to reorganize and restructure the civil service to accommodate the more complex tasks asked of it.  The McKinsey report, entitled the "Machinery of Government; a New Framework for Expanding Services" was published in 1973, and led to a radical overhaul of governmental organization.  Its main provisions were to form the basis of civil service structure for the next three decades.

     In the 1970s and 1980s localization of the civil service continued, and by 1989 the service was 98% localized.  At the most senior levels progress was slower, but locals formed a narrow majority (50.7% to 49.3%).  Under the provisions of the Joint Declaration and the Basic Law it was established that all the top posts in the civil service would be reserved for locals after 1997.  (See Basic Law; Executive Council; Legislative Council; Localization; McKinsey Report; Political System).


Clementi, Sir Cecil (1875-1947).

Governor of Hong Kong from 1925 until 1930.  One of the colony's most accomplished administrators whose diplomatic skills were instrumental in normalizing the strained relationships with the Chinese government in the period following the first world war.  Internally he was active in clearing the slums in the colony and in improving the water supply.  He was also anxious to integrate the Chinese more than his predecessor and appointed the first Chinese member, Sir Shouson Chow, to the Executive Council in 1926. (See Disturbances; Executive Council; First World War; General Strike).


Closed Camps.

     "Closed camps" were set up in July 1982 to contain the increasing number of Vietnamese refugees entering the territory.  Run by the Correctional Services Department, they were primarily intended as a deterrent to any further refugees from Vietnam.  The closed camps were still in existence in 1991 despite attempts to either resettle their inmates in other countries, or to persuade them to return as voluntary repatriates to Vietnam. (Vietnamese Refugees).


Clubs.

     Many of the informal contacts which underpin business affairs in the territory have traditionally taken place in its clubs.  One of the most influential is still the Hong Kong Club, founded in 1846.  Initially it excluded "shopkeepers, Chinese, Indians, women and other undesirables".  Although these criteria no longer apply, membership is still very exclusive.

      Almost as exclusive and influential is the Royal Hong Kong Jockey Club (first established under a different title in 1884) which traditionally has also been the largest charitable benefactor in the territory.  Other clubs of more recent origin include the Foreign Correspondents Club, the American Club and the Chinese Recreation Club.


Colonial Laws Validity Act.

     An act passed in the United Kingdom in 1865 to remove any doubt about the validity of laws passed in any of the colonies.  Its most important provision was that any laws passed by the Hong Kong Legislative Council which contradicted an act of the British Parliament applicable to Hong Kong had no legal effect. (See Capital Punishment).


Colonial Office.

     When Britain acquired Hong Kong the Colonial Office was combined with the War Office with its head being referred to as the Secretary of State for War and the Colonies.  This office was split in 1854 so that a Secretary for the Colonies was created with a Colonial Office.  The Secretary of State was responsible for the administration of crown colonies and was the official point of communication between the United Kingdom and the overseas possessions.  In 1907 the office was divided into three: the Dominion Department; the Colonial Department; and the General Department.  Within this framework Hong Kong came under the wing of the Colonial Department.  With the dissolution of the Empire after the second world war the necessity for a Secretary of State for the Colonies gradually became redundant and the responsibilities of the post were taken over by the Foreign and Commonwealth Office in 1967. (See Foreign and Commonwealth Office).


Colonial Secretary.

     The post of Colonial Secretary was established in Hong Kong in 1843 and remained in force until 1976 when the position was renamed Chief Secretary.  The Colonial Secretary was the head of the civil service and was, after the Governor, the second most important administrator in the territory. (See Chief Secretary).


Colony.

     Hong Kong was declared a colony of Great Britain and accepted as such by the Ch'ing (Qing) dynasty under the various treaties signed and ratified between the two governments in the treaties of Nanking (Nanjing) 1843 and Tientsin (Tianjin), 1860.      
     In 1972 at the request of the People's Republic of China, Hong Kong was removed from the United Nations list of colonies.  Given the overtones of the term "colony", the practice in Hong Kong over the last two decades has been to refer to the possession as a "Dependent Territory" - although its legal status remains until 1997 that of a colony. (See Letters Patent: Political System; Royal Instructions).


Commander British Forces.

     A position established in 1843 to oversee military affairs in the territory.  The first commander of British forces was Major General D'Aguilar who was given the title of Lieutenant Governor and allowed to act as Governor if required.  Under the Royal Instructions of 1917 the Commander British Forces was given a seat on the Executive Council, and he retains that position under the present administration until the cessation of British administration in 1997.  The Commander is responsible to the Chief of Defence Staff in the United Kingdom and his function has been to advise the Governor on any matters affecting the security of Hong Kong. (See Armed Forces; Executive Council).


Commander in Chief, Hong Kong.

     Under the provisions of the Letters Patent of 14 February 1917, the Governor of Hong Kong holds the position of Commander in Chief of the armed forces in Hong Kong. (See Governor).


Commerce and Industry. (see Economy; Industry).


Commissioner for Administrative Complaints.

     The Commissioner for Administrative Complaints was set up in 1988, and is commonly referred to as the "Ombudsman".  The post involves investigating complaints made by individuals in Hong Kong relating to possible maladministration by public bodies.  The office had been under active consideration since 1969, but it took nearly twenty years to bring it into being.  The position is not mentioned in the Basic Law for the future Special Administrative Region after 1997.


Commonwealth, British.

     The Commonwealth was an associative arrangement known in 1939 as the British Commonwealth of Nations.  Its original members were Australia, Canada, Newfoundland (until 1949 when it became a province of Canada) New Zealand and South Africa.  It had no constitution or charter, few obligations upon its members and the only document describing its nature was the Statute of Westminster drawn up in 1931.  As decolonization gathered momentum, many of the old colonies voluntarily joined the Commonwealth.  A number of informal rules applied to the members, such as noninterference in the internal affairs of other members.  Consultations between member states took place on an occasional basis.  In 1990 there were 50 self-governing independent nations in the Commonwealth.  It continues to hold meetings attended by the Prime Ministers of the states involved and has its own permanent secretariat.  Hong Kong was not a member but its interests were formally represented by the United Kingdom.  Formal links with the organization will cease after 1997.


Communist Party of China.

     The Communist Party of China was established in 1921.  It fought intermittently with the nationalist government ultimately defeating it in 1949.  It was the founder and power behind the People's Republic of China established in that year.  The Communist Party of China was from the beginning a party based on Marxist Leninist principles.  There has never been a registered arm of the party in Hong Kong, although it has been active through several front organizations.  The party's activity is centered and coordinated through the New China News Agency (Xinhua). (See Kuomintang (Guomindang); New China News Agency; People's Republic of China).


Confucianism.

     Confucius lived in China from 551 479 B.C. and has had a marked influence upon Hong Kong's culture.  In broad terms Confucianism emphasized a paternalistic mode of rule, demand for obedience from the ruled, combined with strict hierarchical government and social relationships. Principles of public and private conduct were overlapping and based on the family.  Rule was based on moral example with the ruled expected to apply deferential obedience.

     These precepts are widely seen as underlying the attitudes to social, economic and political affairs.  Some explanations of the territory's economic success emphasize the acceptance of Confucian values of hard work, thrift, the importance of saving and investing in the future and the role of the family.  However, there is considerable argument about the extent to which Confucian values were significant explanations of past trends and over the degree to which they are being undermined by the modernization and secularization of society. (See Familism).


Conservation.

     An area of little concern until recently.  For much of the postwar period economic growth was emphasized with little consideration of environmental impact.  By the early 1970s the deterioration of the environment was such that the issue could not be ignored.  The first government interventions came in 1976 with the establishment of country parks.  In 1981 the strengthened Environmental Protection Agency helped introduce positive steps to legislate against some of the worst manifestations of pollution. (See Environment).


Constitution.

     The constitution of Hong Kong has been that of a colony throughout its history.  Its legal authority was based on prerogative, that is, the unrestricted right of the British monarch.  Queen Victoria used her prerogative to establish the colony by Order in Council, which was followed by the Royal Charter in 1843.  There followed a series of further constitutions from further Orders in Council when Britain acquired Kowloon in 1860, and the New Territories in 1898 and when the Kowloon Walled City was annexed in 1899.  These later documents did not, however, alter the constitutional structure of the colony.

     The content of the Royal Charter was passed from Governor to Governor in the Letters Patent and the Royal Instructions and much of its original content is still operative.

     Under the provisions of the Charter the Governor is primarily answerable to the British Crown rather than to Hong Kong.  He is obliged to form and consult the Executive Council and the Legislative Council, but is not obliged to respect their wishes.

     The Royal Instructions expanded on the duties of the Governor and, despite occasional slight modifications, the structure remained broadly the same.  Within the Royal Instructions there were gaps relating to such areas as the composition of the legal system, the civil service, the structure and powers of local government, taxation, human freedoms and the size and scope of government.  Some of these gaps were filled by ordinances and such subsidiary documents as the Colonial Regulations.

     The partial coverage of these various documents allows considerable powers to lie formally in the hands of the Governor.  He could, for example, disregard the advice of the Executive Council providing he had the consent of London.  In practice, however, the Governors of the territory rarely, if ever, used the formidable powers granted to them.  Restraints such as Common Law and the power of the British Parliament, with the prudence of the Governor in his relations with other actors in the colony, ensured that the formal powers were not abused.

     In 1984 the Joint Declaration between the United Kingdom and the People's Republic of China allowed for considerable constitutional changes in 1997.  These changes were set out within a Basic Law eventually published in April 1990.  The major changes outlined within that document were as follows:

1. British administration of Hong Kong would cease in 1997. The superior constitution would become that of the People's Republic of China and the subordinate written constitution would be the Basic Law

2. The Basic Law was far more detailed in its content and attempted to cover such areas as basic freedoms, the Chief Executive, the Legislative Council, the Judiciary and the civil service.  Formally it was more democratic than its predecessor, more unitary than federal and is subordinate to the state constitution of the People's Republic of China. (See Basic Law: Joint Declaration; Letters Patent; Political System; Royal Instructions).


Conventions of Peking (Beijing).

     The first Convention of Peking (Beijing) ended the Second Anglo-Chinese war (Opium or Arrow war), and was signed in 1860.  The agreement provided for the cession of Kowloon and Stonecutters Island to Britain in perpetuity.  These were added to Hong Kong Island which had been acquired by Britain under the Convention of Chuanpi (Chuanbi).

     The second Convention of Peking (Beijing) was signed on June 9 1898.  Under its provisions, Imperial China leased the New Territories to the United Kingdom for 99 years.  This convention followed the defeat of China (18941895) by the Japanese which had resulted in the Treaty of Shimonoseki, and a general enthusiasm among the great powers for making territorial claims on China.  The strategic reason for the taking of the New Territories was to make Hong Kong and Kowloon easier to defend.  It was the leasing of the New Territories under this convention which meant that British Administration there had to cease  on June 30, 1997.  This was the complicating factor which brought about the need for the United Kingdom to negotiate with the People's Republic of China about the territory's future, which in turn resulted in the Joint Declaration of 1984.  (See Anglo-Chinese wars; Arrow War; Chuanpi (Chuanbi), Convention of; Joint Declaration; New Territories; Stonecutters Island).


Cultural Revolution.

     At the Party Congress of 1969 the Cultural Revolution was officially ended, and the power of the party and state structures reestablished.  However, in the official Chinese version of these events the Cultural Revolution lasted beyond this period right up to 1976 only culminating in the fall of the " Gang of Four" who had tried to seize control of power after Mao's death.

     The major impact of the Cultural Revolution on Hong Kong was its encouragement of major riots, demonstrations and bombings in 1967.  British military reinforcements were brought into Hong Kong although they were not directly used to quell the riots.  Following so closely upon the Star Ferry riots of the previous year these events led the Hong Kong government to introduce major reforms aimed at increasing public involvement in policy making and execution. (See Disturbances; Gang of Four; Mao Tse-tung (Mao Zedong); Star Ferry Riots).


Currency.

     With the acquisition of Hong Kong there was a need to regularize the currency.  In 1844 equal legal tender was accorded to the major currencies in circulation, and it became possible to deal in dollars, English currency and Indian gold and silver coins.  However, the growth in trade and population resulted in the virtual elimination of English and Indian coins in favor of the dollars used by the Chinese.  Therefore in 1862 the silver dollar, minted in Spain, Mexico and South American states was declared the legal tender in tandem with coins minted in England. This was further extended in 1864 by the colony issuing its own one dollar as well as cent and ten cent pieces.

The value of the dollar gradually decreased from its original approximate value of four shillings and two pence to the pound sterling to about one shilling and eleven pence and one halfpenny in 1898.  Its price fluctuated with the value of silver which continually declined.  In 1935, in order to stabilize the currency, the Hong Kong dollar was linked to the pound sterling at one shilling and 3 pence.  This gave an exchange rate of  HK$16 to 1 pound sterling.  This provided stability and an exchange rate that was to last until 1967.

     In that year sterling was devalued by 14.3%, and the Hong Kong government decided that the old relationship with sterling was becoming counterproductive.  The Hong Kong dollar was allowed to break free of sterling and from 1974 until 1983 became a floating currency.  The major economic and political uncertainties generated during the negotiations between Britain and the People's Republic of China in 1983 led to a near collapse of the currency, and the government introduced a revised system which pegged the Hong Kong dollar to the United States dollar at an exchange rate of US$.1 = HK$7.8.  That rate has been in force since that time.  After the resumption of Chinese sovereignty in 1997, Hong Kong will continue to have the Hong Kong dollar as its legal tender. (See Economic System; Economy).


Customs Blockade. (See Blockade).

Davis, Sir John Francis (17951890).

     Governor of Hong Kong from May 1844 to March 1848.  He assumed the position on the departure of Sir Henry Pottinger, and saw his main function as increasing order in the colony.  He improved internal policing and the control of piracy.  He also increased the application of British law and systems of punishment.

     Amateurs in the government were replaced by the more competent team which he recruited.  However, his attempts to increase the size of the Executive Council and the Legislative Council to make them more effective were overruled by London.  Most significantly he attempted, against major opposition from the merchants, to raise revenue for the governance of the territory in order to reduce the subsidy reluctantly granted from Britain.  His methods included selling monopolies on opium, granting licenses and levying taxes on all property.  Although this had a marginally depressing effect upon trade and profit, it did put the financial system on a firmer long term footing.   
     On his own initiative he ordered the attack on Canton (Guangzhou) in April 1847 and forced concessions from the Chinese on the treatment of British citizens in that city.
(See Governors).


Davison Report.

     This report, published in 1988, was undertaken by Mr. Ian Hay Davison to investigate the collapse of the Hong Kong stock exchange in October 1987.  The report was highly critical of the running of the stock exchange in the territory as well as the futures exchange and the relevant regulatory bodies.  Its major recommendations were:

1. to make the stock market a nonprofit making organization;

2. to rename the Stock Exchange Committee the Council;

3. to extend the powers of this Council and its membership, particularly by including some international stock brokers and some nonbrokers;

4. to tighten up the rules and regulations relating to dealings;

5. to establish a new sevenmember Securities Commission which would be responsible for the administration of the Stock and Futures Exchanges.  Although this body would be nongovernmental its members could be dismissed by the Governor.


Daya Bay.

     Daya Bay, situated some 50 kilometers from Hong Kong, was chosen in 1982 as the proposed site for a nuclear power station.  The project was a joint venture between Hong Kong electrical interests and the Kwangtung (Guangdong) Electric Company.  Given the proximity of the site to Hong Kong, there was considerable opposition to its construction on environmental grounds.  Despite considerable pressure group activity by an umbrella group known as the Joint Organization for the Concern for Nuclear Energy and by the Friends of the Earth, the project was approved.  The joint venture named the "Kwangtung (Guangdong) Nuclear Power Joint Venture Company" was established in December 1983.  Intense lobbying by both sides continued and the opposition case was strengthened in April 1986 by the Chernobyl disaster.  Although opposition to the project rose to 70% in opinion polls,  the contracts on the Daya Bay nuclear station were signed in September 1986 and construction began.  A further problem emerged in October 1987 when it was discovered that the number of reinforcement bars installed was substantially below the planned number.  

In 1991 the Peking (Beijing) authorities announced that they were considering building a second nuclear power station near to Daya Bay. (See Harwell Report).


Defence Costs.

     The question of how much Hong Kong should contribute to its own defence costs and how much the British government should pay has been one which has been hotly debated since the founding of the colony.  The British government were anxious to minimize its contribution and have generally tried to persuade the Hong Kong government to increase its share.  For their part the colonial government, anxious not to increase taxes, have tried to minimize payment.  

     Initially the cost of the armed forces was born entirely by the British government, but by 1848 it was established that the local government should make a contribution to defence costs, pay for fortifications and defence works and provide the necessary land.  Total defence expenditure was gradually increased so that in 1885 the colony voted 56,000 pounds sterling to defence and this was increased in 1886 by an additional 60,375.  Expenditure continued to grow particularly in the early years of the twentieth century: the figures tripled between 1898 and 1913.

     On the eve of the first world war the military contribution was fixed at 20% of government recurrent revenue.  In the inter-war years this meant that the cost to the colonial government of defence was HK$ 2,319,645 in 1921 rising to HK$ 6,051,926 in 1939.

     Between 1965 and 1975, the British government continued to meet the majority of military costs in the territory.  In 1975, however, in response to major rethinking in the United Kingdom, it was decided that the ratio of costs for the defence of the colony would be shared more equally.  In 1975 the ratio of defence costs was fixed at Hong Kong: 50% and the United Kingdom: 50%.  However, this soon shifted to Hong Kong: 75% and the United Kingdom: 25%.  That figure was to remain constant until the late 1980s when, after considerable argument between the Hong Kong and London, the ratio was changed to 65% Hong Kong and 35% British.  As a proportion of the territory's GNP this was under 1% of the total, and less than 5% of total government revenue.

      After 1997 the British armed forces will no longer remain in Hong Kong.  Under the provisions of the Joint Declaration the People's Liberation Army will take the responsibility for defence, and will meet all costs. (See Armed Forces; Basic Law; Joint Declaration; Second World War).


Democracy.

     Hong Kong has never been democratic in the western pluralist sense of the concept.  If democracy is taken to mean a system where there is universal suffrage, competitive elections, popular sovereignty, and the legal and political equality of individuals regardless of race, language or religion, then the colony does not emerge with a particularly good record.  Universal suffrage was only granted to the legislative body in the last days of British administration, and even then to a limited number of seats in the legislature.  In addition the Governor was appointed rather than elected.  The colony has a reasonable record of religious toleration.  However, although the formal position regarding racial equality is relatively strong, the minority expatriate community has enjoyed privileges incommensurate with its actual numbers.

     Pressure from the more articulate members of the community to increase the pace and expression of institutional democratization was intense during the period 1984 up to the publishing of the Basic Law in 1990.  The final document, however, whilst allowing for the continuing introduction of a limited number of directly elected seats to the central legislative body, refused to countenance a fully elected legislature.  At the same time the Chief Executive of the future Special Administrative Region is to be made more accountable to the people in so far as he or she is to be elected.  While this disappointed those who had hoped for a political structure on western lines, many conservative elements argued that such a model of democracy was inappropriate for Hong Kong.  This position was evidently shared by the government of the People's Republic of China. (See Elections; Executive Council; Legislative Council; Political System).

Deng Xiaoping (See Teng Hsiaop'ing).

Depoliticization.

     A term widely used to describe Hong Kong society, particularly in the period between the second World War and the disturbances during the Cultural Revolution in 1967.  It suggested that the people of the colony did not wish to involve themselves in the affairs of government.  Nor were they encouraged to do so by a colonial government which saw itself as benevolently paternalistic.

     Explanations of the reluctance of the population to involve themselves in the political process include:

1. The political culture of the Hong Kong population which militated against positive identification with the government or the concept of the civic society.

2. The argument that the majority of the population came from the mainland where political involvement was a precarious activity.

3. A governmental system where the idea of popular participation was seen as unnecessary in the governance of what the colonial government saw as an efficient and well run system.

     The events of 1966 and 1967 raised doubts with these assumptions.  Society in general, and a growing Chinese elite in particular, seemed to be looking for greater participation in the public affairs of the territory.  Since 1967 levels of political participation have increased, manifesting themselves in constitutional debates, the growth of pressure groups, the civic education programs and the gradual, though limited, democratization of the political system, in the period leading up to the ending of colonial rule in 1997. (See Familism; Localization).

Deportation.

     Deportation was introduced in the colony's early years in the attempt to control crime.  Those Europeans convicted of crimes were deported either to the Straits Territories or later to Australia.  Criminals of Chinese origin were deported back to China.  This system was perceived as having the added advantage of removing the costs of potential incarceration.  However, many of the deported Chinese returned, and were often arrested again having committed further crimes.  They were therefore "painlessly" branded as criminals to facilitate subsequent redeportation if they attempted to return.  In 1857 the transportation of criminals ceased but deportation continued with the active support of both the local and European populations.  In 1882 a Banishment Ordinance was introduced which allowed for banishment of five years.  This was followed by the Peace Preservation Ordinance in 1884 which allowed for the banishment of persons who, although not convicted, were "dangerous to the peace and good order of the colony".  This particular piece of legislation was intended primarily for emergencies.

     Under the present regulations, deportation involves the removal of persons who have no right of abode in the territory.  This means that only Hong Kong permanent residents are immune from deportation.  The term is distinguished from "removal" which is applied to any illegal immigrants who might enter the territory. (See Illegal Immigrants; Permanent Resident; Snake Heads; Touch Base Policy).


Deputy Chief Secretary.

     A nowdefunct post  in the civil service created in 1985 and abolished in 1989.  The post largely involved constitutional developments and was replaced by the post of Secretary for Constitutional Affairs.


Des Voeux, Sir William (18341909).

     Governor of the colony from October 1887 until May 1891.  In his comparatively short period of tenure he was often out of the colony.  His biggest problem lay with the Chinese opposition to the new powers of the Sanitary Board.  This board had the powers to improve health standards by inspection of housing, disinfecting premises, and, if necessary, removing any persons suffering from contagious diseases.  It could also demand the upgrading of property to provide more ventilation in the overcrowded areas. The Chinese population strenuously objected to these proposals denying the existence of health problems, claiming that the new regulations would drive up rents, and  insisting that their homes were private.  Compromise was reached by compensating the owners of houses for the improvement of living conditions.  However, the effectiveness of the reforms was limited.  A report published in 1890 showed that in some city areas the population density was often in excess of 1,500 persons per acre, and in one particular block it was over 3,235 per acre.  
     The other achievements during Des Voeux's period of office were the vastly improved water supply and the ending of the Blockade with China. However by general consent the impact of Des Voeux upon the affairs of the colony was marginal. (See Blockade; Health; Water Supplies).


Direct Elections. (See Elections).


District Administration Scheme.

     The district administration scheme was introduced in 1981, with the publication of a White Paper entitled, "District Administration in Hong Kong.  Its aim was to "provide an effective forum for public consultation and participation in administration at the district level".  It was in effect a means of bringing the administrative system into line with the more sophisticated needs of a fast developing territory.  The system was further developed in 1987 with another White Paper entitled, "The Development of Representative Government: The Way Forward".  Under the new arrangements the territory was divided into 19 districts: four on Hong Kong Island, six in Kowloon and nine in the New Territories.

     Prior to these changes the local administration system had been complex.  Effectively the urban and the rural areas of the colony were administered separately.  The former were run by the City District Committees and the latter by the District Advisory Boards.  Both were totally non-elected, comprising official and appointed members.

     In 1982 the first elections were held for office in the reorganized District Boards, and in 1985 all officials were removed from membership.  At present two thirds of the membership is elected and the remainder appointed.

     The District Boards are seen as advisory in capacity and their responsibilities restricted to their own district. (See  Constitution; Local Government; Political System).


Disturbances.

     A term used in Hong Kong to describe minor or major disruptions in society.  In the nineteenth century there were sporadic disturbances, but for the most part they presented no challenge to the authority of the government.  Usually the disturbances were a reflection of relationships with the Chinese government.  Examples would include the E Sing Bakery incident in 1857, and the disturbances in the colony in 1884 following the FrancoChinese wars.

     In the postfirst world war period there were a number of disturbances, some provoked by local causes, others arising from the turmoil on the mainland.  Examples of the former type occurred in 1919 when widespread strikes occurred in response to the rising price of rice.  This was followed by a Seamen Union strike in 1922, which eventually spread into a national strike.  

     The strike and boycott of 19251926 lasted almost sixteen months and was antiBritish in intent.  It followed an incident in Shanghai where British police had opened fire on a crowd demonstrating against the Japanese in particular and foreigners in general.  A general boycott of British goods was declared, and all Chinese workers went on strike.  The strike only ended after it had substantially damaged the local economy.


     Since the second world war there have been a number of disturbances.  The most important were in 1956, 1966, 1967, 1984 and 1989.  The 1956 disturbances developed into a riot and involved clashes between the pro Nationalist and pro  Communist factions.  The rioting was largely confined to Kowloon and Tsuen Wan, but it left 59 people dead.

     There followed nearly ten years of relative tranquillity ended by the Star Ferry riots.  These were triggered by an increase in fares across the harbor in the Star Ferry.  No sooner had this riot died down than the colony suffered its most violent demonstrations.  The 1967 riots were a spill-over from the Cultural Revolution within the PRC.  Fifty-one people were killed.  These included 10 policemen, and 15 people killed by bombs.
     The years from 1967 until 1984 were relatively peaceful.  The economy boomed, reducing the significance of many of the underlying causes of previous disturbances.  The worst aspects of poverty had been largely eradicated and the government had spent large amounts of public money on public housing, education and health.  The system of greater consultation which had emerged as a consequence of the 1966 and 1967 riots had also reduced the extent of political alienation of the populace.  It was therefore a surprise when a taxi drivers' dispute escalated into a full-scale riot.  The taxi drivers had gone on strike in opposition to an illconsidered attempt by the government to increase license fees.  The tension erupted into an outbreak of rioting and looting in the Mongkok area.  The prompt action of the police and the limited scope of the grievances led to the rapid collapse of the disturbance.

     The 1989 disturbance occurred on the night of June 7 following the events of T'ien-an-man (Tiananman) Square, Peking (Beijing).  It began and ended very quickly and was of no political significance.  Since that time there have been no major disturbances.  (See Cultural Revolution; General Strike; Star Ferry Riots; Taxi Drivers' Dispute; T'ien-an-man (Tiananman)).


Drugs.

     The most important drug in Hong Kong's history has been opium and its derivatives.  The smoking of opium was probably introduced to China by the Dutch in the eighteenth century, although it had been used in China as a pain-killing drug since the eighth century A.D.

     In 1729 the Chinese authorities introduced an edict prohibiting its use, but this failed to curb the importation of opium increasingly supplied by the British from India.  Opium imports were forbidden in 1796, but smuggling saw the number of imported chests increase from 2,000 in 1800 to 40,000 in 1839.

     Attempts by Governor Lin to stamp out the importation of drugs into China led to the outbreak of the Opium War in which British military force triumphed and China was forced to open up to trade with the west.  The trade in opium through the treaty ports subsequently increased further.  After the second Opium War (1856 1860) the Chinese officially recognized the importation of opium, and were allowed to levy a tax on it.

     From 1840 1860 Hong Kong was a significant entrepot for both the official movement of opium and its smuggling.  After 1860 the amount of smuggling increased in the attempt to avoid Chinese taxes.  In response the Chinese authorities imposed a blockade on the colony which was not lifted until 1886.

     Hostility among the educated classes in China led to major pressure to rid China of all opium, both locally grown and imported.  At the same time British missionaries and other liberals pressured the British government to cease the trade.  In 1906 an imperial edict was passed which demanded that opium use should be eradicated within ten years and passed punitive regulations to set the plans in motion.  The election of the Liberal government in Britain in 1906 brought about an agreement between the Chinese authorities and the British government to reduce the importing of opium from India and to eradicate its importing completely by 1917.

     There is clear evidence that much of the early prosperity of Hong Kong was related to narcotics. As late as 1905 it was estimated that 10% of the value of goods shipped through Hong Kong were based on opium. As a source of revenue for the government the opium monopoly established in 1858 provided between 9% and 29% of the total between 1886 and 1906. The table below gives further details.

Proportion of Government Revenue Derived from the Opium monopoly 1886 1913.

Year.     Total Revenue (HK$)          Opium Monopoly (HK$)     (%)

1886               1,367,977.                 178,500.               13.
1896.          2,609,914.                 286,000.               11.
1906.          7,035,011.               2,040,000.          29  1913.          8,512,308.               1,183,200.          14


     In 1908 the British government decided, despite opposition from the Hong Kong government, that all smoking divans were to be closed in Hong Kong.

     The Chinese revolution of 1911 produced a new government even more hostile to the importation of opium, and regulations were more strictly applied.  This led in 1913 to the ending of exports to China of Indian opium.  However, the government's monopoly on opium consumed in the colony continued to provide a steady revenue through its sale in both government shops and other retail outlets.

     Following the first world war the newly formed League of Nations put great pressure upon the British government to end the government monopoly on opium and to make its consumption illegal.  Pressure from the United States of America was particularly strong.  In this period there was a reversal of smuggling activity with large amounts of cheaper opium now being smuggled from China into Hong Kong.  Official revenue from the legal sale of opium to the public in the colony still yielded the government over three million Hong Kong dollars in 1931.

     With the fall of Hong Kong to Japan in 1941, the influence of a colonial government upon the Colonial Office disappeared and that of the United States of America became paramount.  Slowly the British were edged towards the acceptance of prohibition which they accepted in September 1945.  The government monopolies in Hong Kong (and Singapore) were abolished and the desirability of suppressing the consumption of opium in the colony was accepted.

     Since that time behavior and laws relating to narcotics in the territory have conformed to that of the west. The use of narcotics has been illegal and the law enforcement agencies have been active in suppressing the consumption and movement of narcotics both within and through the territory. (See Opium Wars).

E Sing Bakery incident.

     The E Sing bakery incident refers to an abortive attempt to poison the European population in Hong Kong by putting arsenic in the bread produced by the E. Sing Bakery. The incident occurred in January 1857 when anti British feelings were running high in the colony. The owner of the bakery, Cheong Ah Lum, was acquitted of the crime but 52 of his employees were imprisoned and later deported.

East India Company (1600 1858).

     The East India Company was established in 1600 and was given the monopoly of trade with India. It eventually gained effective administrative control over the whole of India which it maintained until 1858 when India was made an imperial possession by the British crown.

     For a time it also held a monopoly of British trade with China.  However, this was lost in 1833 following opposition from other British merchants. (See Anglo Chinese Wars).


Economic Agreements.

     With the increasing economic autonomy granted by the British government to Hong Kong and the awareness that the trading interests of the metropolitan power and that of the territory did not necessarily coincide, the colony was allowed to become a member of the MultiFibre Arrangement with the USA from 1973 onwards and the General Agreements on Tariffs and Trade (GATT) in 1988.  Under the 1984 Joint Declaration of 1984 it is accepted that membership of GATT will continue  after the hand-over in 1997.  This was endorsed in Article 116 of the Basic Law. (See Basic Law; Economic System; GATT; Multi-Fibre Arrangements; Trade).


Economic System.

     The development of the economic system of Hong Kong has been affected by the longstanding government acceptance of the principles of laissez-faire.  In the nineteenth century such an approach was endorsed by the British entrepreneurs, but it was also accepted by the Chinese as they gradually entered into the colony's economic system.  Trade unionism or collectivist ideas had little impact upon the general consciousness.  

     Until the second world war, Hong Kong's economy depended almost entirely upon entrepot trade. This had in the early stages been conducted between Britain, India and the United Kingdom, although in the inter-war years trade with Japan, the United States and other European countries had increased.

     Largely dependent on the entrepot sector, service industries had also grown up in such areas as ship repairing yards, ships' victuallers, insurance companies, merchant houses and banks. The population of Hong Kong had gradually grown from an estimated 24,000 in 1845 to about one million in 1936.

     The Japanese occupation from 1941 until 1945 saw the collapse of the traditional economy, but after the second world war Hong Kong experienced extremely rapid economic growth.  It had few conventional advantages, but it exploited to the full its abundant supply of cheap labor (provided by a constant influx of refugees from China) and the ample credit provided by the banking system.  In the event structural change was almost made necessary by the disruption to the traditional entrepot trade arising from the civil war in China.

     The triumph of the communists on the mainland led to another bonus for the colony the immigration of many industrialists from the mainland.  In particular, many of the owners of the great cotton mills of Shanghai moved to Hong Kong, bringing with them their expertise, knowledge of export markets and capital.  They were to be followed in many cases by skilled workers from those factories.  The Korean War which broke out in 1950 also boosted demand for textiles and clothing. By 1960 employment in textiles and clothing provided over 40% of total manufacturing employment in the territory.  Another indicator of the growing importance of manufacturing can be seen in the changing balance between exports and reexports.  In 1953 only 30% of all Hong Kong's exports were of local origin and 70% were reexports, but by 1959 the situation was reversed to 70% exports of local origin and 30% reexports.  Other forms of manufactures grew even more rapidly including plastic toys, plastic flowers, shoes, gloves, torches, torch batteries, vacuum flasks, enamelware, aluminum ware and rattan ware.  Again the demand for labor was satisfied by the continued influx of immigrants from the mainland.  By 1961 the population had grown to over 3.1 million an increase of over 50% in only eleven years.

     The 1960s and 1970s saw a continuing growth of the economy.  For twenty years the Gross Domestic Product (GDP) grew at an average annual rate of around 10%.  Throughout this period the government allowed the forces of supply and demand for goods and services to be largely unrestricted.  Few barriers to trade within or without the territory were allowed.  The government's general stance was termed "positive non-interventionism" and received wide support among businessmen and the influential bureaucratic sector.

     The period from 1980 to 1990 also showed a steady growth in the economy of Hong Kong, but this was accompanied by a substantial restructuring of the economy itself.  Textiles, the vehicle by which the territory launched itself into the international market, showed a marked decline in importance.  They were increasingly replaced by the growth of electronics.  Those textile manufacturers who remained increasingly moved to higher value-added products.  In the period 19731985, the share of the textile industry in net output fell from 27% to 15% and in manufacturing employment from 21% to 13%.  Meanwhile clothing expanded form 20% to 23% and electrical and electronic goods from 9% to 14%.  Overall manufacturing showed a significant decline, but the service sector, chiefly banking and financial services, transport and communications, retailing, and hotel and catering sectors showed a dramatic expansion.

     One of the reasons for the decline in manufacturing in the territory is that the comparative advantages in labor costs have been whittled away.  The other newly industrialized countries in the region had lower labor costs and this applied in particular to the People's Republic of China.  By the late 1980s, for instance the average factory wage per month in Hong Kong was US$685 compared to US$45 in the People's Republic of China.  With the introduction of the policy of the "Four Modernizations" in the People's Republic of China in 1978 it became much easier to establish manufacturing units in that country.  The creation of Special Economic Zones (SEZs), especially Sham Chun (Shenzhen) across the border from the New Territories, attracted considerable investment from Hong Kong.  By the late 1980s over two million workers were employed in joint venture companies established between Hong Kong and China.  At the same time the opening up of the People's Republic of China to international trade saw the reemergence of the Hong Kong as a center for the redistribution of goods and services to and from the mainland.  The integration of the two economies and the mutual reciprocity between the two systems has been massively underlined in the last ten years and this trend appears likely to continue  in the next few years.

     Real GDP growth has been maintained at between 6% and 7% over the decade 19771988.  Employment has also remained high with official records showing the worst year since 1960 to be 1983 with an unemployment rate of 4.5%.  Strikes in Hong Kong have been rare. Membership of the trade unions has decreased. Registered membership of trade unions in the late 1980s was only just over 13% of the total workforce.

      Hong Kong is heavily reliant upon the rest of the world for its economic prosperity.  Its strongest links are with the United States of America and the People's Republic of China.  In the latter case reliance is increasing, not only for the importation of essential food and water but also as a result of the ever growing integration of the two economies.  The need to export to the USA (and other economies such as Japan and western Europe) lies behind the territory's commitment to free trade.  But in order to promote the idea of free trade and to counter protectionist policies, the territory has remained open to foreign investment and trade.  In 1986 the major sources of foreign investment (apart from the People's Republic of China) were:

USA                    24%
Britain               14.7%
Japan               11.9%
Singapore                5.7%


     The Joint Declaration on the future of Hong Kong states that the economic system will remain the same for fifty years.  This was endorsed in the Basic Law. Articles 105119 basically allow the government of the future Special Administrative Region (SAR) autonomy to pursue the largely capitalist, free market, non interventionist set of economic policies that have been practiced since the second world war. (See Basic Law; Joint Declaration; Sham Chun (Shenzhen); Special Economic Zones; Trade).


Education.

     Prior to the arrival of the British in Hong Kong there was little formal educational provision except for the small village schools.  The majority of the population was illiterate.  The private schools tended to be traditional and of variable quality.  In 1843 the beginnings of a structured and free education system was established by the Morrison Educational Society under the presidency of the American missionary Dr E.C. Bridgman.  This was followed by an AngloChinese College, and a Catholic college in the same year.

     In 1845 eight Chinese schools were set up by the Chinese community of which 3 were given HK$10 per month grant from the government.  By 1845 the total given from public sources towards education in the colony was HK$120.

     The provision of public education was slow in expanding, and it was estimated in 1865 that out of a total of over 22,000 children in Hong Kong only just over 1,800 were being given an opportunity for schooling.  The situation gradually improved as the government became aware of the benefits of education.  By 1883 there were a total of 180 schools in Hong Kong with a total of 7,758 registered pupils.  Of these 39 were government funded, 48 were given grants by the government, and 103 were outside government supervision.  It is noteworthy that until 1890 the expansion was intended primarily for boys; it was not until the last decade of the century that any girls' schools were established.

     Development of the tertiary sector was equally late to start.  A college of medicine was set up in 1887, later to be incorporated into the Hong Kong College of Medicine in 1907.  In 1911 the University of Hong Kong was established.

     The post-second world war period saw a dramatic expansion in the provision of education at every level.  From the 1970s onwards free education for nine years was provided for every child.  Total government expenditure increased from HK$327 million in 1970 to over HK$13,000 million in 1989.

     However, one area which continued to be underprovided until relatively recently was tertiary education.  The University of Hong Kong was complemented by the Chinese University of Hong Kong in 1963, and a third university, the University of Science and Technology, was opened in 1991.  In 1973 the Polytechnic of Hong Kong was established and complemented by the opening up of the City Polytechnic in the 1980s and the upgrading to degree-awarding status of the Hong Kong Baptist College.  In 1970 the total number of students in the two universities was just over 5,000, but by 1989 they had nearly 18,000 students at undergraduate and graduate level.  Moreover this was complemented by nearly 19,000 students studying for degrees or other advanced qualifications at other institutes of tertiary education.

     Success in the highly competitive education system is highly prized by the general population.  Within a system of examinations modelled on the British system, students at secondary level have had to compete for places in the best schools and need the local Hong Kong Certificate of Education (HKCEE) taken at the age of 16 to proceed to the Advanced Level of Education if they wish ultimately to enter University.  Over the last ten years increasing numbers are studying abroad at both secondary and University levels.

     Under the Basic Law, Articles 136 and 138, the education system is promised freedom from external interference after 1997. (See Education Commissions; Universities).


Education Commission.

     A body set up in November 1984 to advise the Governor on future community needs in education.  It published major reports in 1985, 1986 and 1988.  The first two dealt mainly with the appropriate language of instruction in schools (Chinese versus English) and the last recommended that general degree programs in the University should, in the case of the Chinese University of Hong Kong, be reduced from four to three years. (See Education; Universities).


Elections.

     Although elections at the central level of Hong Kong government are a relatively recent innovation, they have a longer history at the local level.  The first elections for public office in Hong Kong were for two positions on the Sanitary Board in 1887. This elected element continued until the Sanitary Board was renamed the Urban Council in 1936.  Eligibility for office and access to the franchise were, however, limited.

     Under the terms of the Young Plan attempts were made between 1946 and 1949 to widen the base of political representation through the creation of a Municipal Council, which was to be fully representative and deal with certain internal administrative functions.  The proposal allowed for an elected majority on the proposed council to be elected by a fairly wide franchise.  The council was to have powers and autonomy over all urban services, education, social welfare, town  planning and other functions.  The plan also proposed indirect elections to the Legislative Council at central government level. However, in the face of considerable opposition by members of the Legislative Council, the plan was effectively killed.  Apart from the limited and slowly increasing numbers elected to the Urban Council - a body with restricted powers - little progress was made at the local level and none was made in the provision of elected members to the central government legislative body, the Legislative Council.

     In 1982 direct elections were extended to the District Boards, and the franchise was broadened to include all citizens who had been resident in Hong Kong for seven years or more and who were over 21.  However, the District Boards had little real political power, their role being to safeguard the interests of the citizens living in small constituencies, to advise central government on their community needs and to spend a small amount of money on minor local amenities.  They had no financial autonomy.  

     Direct elections were subsequently applied to the Urban Council elections and to the newly created Regional Council in 1986.  More significantly, steps were taken to introduce an elected element into the Legislative Council.  In 1985 elections for membership of the Council took place for the first time although only a minority of the seats were elected, and none were elected by universal suffrage.  This was the result of an extremely complex system whereby the legislature was made up of official members (nonelected government officials), members appointed by the government, members elected by the District Boards and the Urban and Regional Councils, and finally members elected by functional constituencies.  In 1987 a Government proposal suggested further extensions of the system to allow direct elections  for a number of directly elected seats on the Legislative Council in 1991.  Under the terms of the Basic Law it is anticipated that in the Legislative Council to be chosen in 1995, 20 members will be returned by direct elections from geographical constituencies, 30 members by functional constituencies(e.g. the financial constituency), and 10 by an election committee.  In other words only one third will be directly elected in the chamber. The plans for the council's second and third terms provide for the directly elected membership to rise to 50% of the total in 2003.

     Membership of the Executive Council has never been subject to elections, and there are no plans to change this.  Similarly, the Governor has never been elected, but has been appointed by the Crown.  The proposals in the Basic Law of April 1990 for the future Chief Executive suggest that direct elections to the post are not anticipated in the foreseeable future. (See Basic Law; District Administration; Electorate; Joint Declaration; Legislative Council; Regional Council; Urban Council; Young Plan).


Electorate.

     Historically there was no electorate of any note in Hong Kong until after the second world war.  Even until the 1980s, the franchise was extremely limited.  With the extension of the number of elected members into the District Boards, Municipal Councils and the Legislative Council the total eligible electorate is about 3.4 million. However, the total who had registered to vote was only 1.9 million in 1991. (See District Administration; Elections; Legislative Council).


Electronic Road Pricing. (ERP).

     The growth in affluence in Hong Kong during the period 19601980 led to a huge growth in the number of vehicles using the roads.  In 1970, for instance there were just over 144,000 vehicles registered in the territory, but by 1983 this had increased to 327,000.  To meet the problems of congestion the government invested heavily in improvements to the communications infrastructure while at the same time increasing fees for licenses and first registration of vehicles.  When these measures proved insufficient the government in 1983 proposed a scheme to fit road vehicles with electronic number plates.  In conjunction with fixed recorders at various sites, these would record the road use of each vehicle.  The road users would then be presented with bills at the end of each month according to road use.  The charge for entering the urban areas was to be higher than in the more outlying areas.  The scheme was tried out on an experimental basis, but in the face of considerable opposition to it by motorists and those concerned about the government's potential ability to monitor people's movements, was abandoned.


Elliot, Captain Charles (18011875).

     Charles Elliot was appointed by the British government as Superintendent of Trade in December 1836 with orders to press for the expansion of trade between the home government and China.  His express instructions were to maintain a friendly policy as far as possible with the Chinese authorities and win recognition of the diplomatic equality for Britain which the Chinese government had refused to grant.  However, relations between the two sides deteriorated rapidly.  The seizure of opium stocks owned by British merchants by Governor Lin in 1839, his demand of the death penalty for any individual importing opium, and the detention of British merchants in their factories in Canton (Guangzhou) all contributed to the deteriorating situation.  While Elliot requested permission from Britain for military intervention, Commissioner Lin was putting pressure on the Portuguese to remove the British from Macau.  In the face of this pressure Elliot withdrew the British  community to Hong Kong.

     When the British government demanded the cessation of an island for the purposes of providing more security for British merchants, Captain Elliot was instructed to occupy "one or more islands . . (to be ) conveniently situated for commercial intercourse, not merely with Canton (Guangzhou), have good harbors, afford natural facilities for defence, and be easily provisioned". On his appointment as Plenipotentiary he was instructed to blockade the Canton (Guangzhou) and surrounding areas.  Elliot moved against the Canton forts and negotiated the Convention of Chuanpi (Chuanbi) in 1841.  Under its provisions Hong Kong was to be ceded to Britain.  Hong Kong was duly occupied on January 26, 1841 and recognized by Britain as a colony some two and a half years later.

     In the event Elliot was seen by Lord Palmerston, the British foreign minister, as having disobeyed his orders and neglected his instructions.  Accordingly, in August 1841, after eight months as administrator in Hong Kong, he was replaced by Sir Henry Pottinger as Administrator. (See Anglo-Chinese Wars; Chuanpi (Chuanbi), Convention of; Palmerston, Lord; Pottinger, Sir Henry).


Emergency Regulations and Powers.

     A number of laws were passed in the inter-war years in response to various crises.  Under the Emergencies Powers Ordinance the Governor in Council was empowered to issue regulations of very wide scope.  They were, for example, used by the Governor on the outbreak of the second world war to introduce controls relating to censorship, mining of the harbor approaches, the requisitioning of ships and aircraft, interning of enemy aliens, and trade and exchange control.  They were last brought into force in the disturbances of 1967 when detention without trial was permitted under the Emergency Regulations Ordinance.(See Disturbances; Second World War).


Emigration.

     Hong Kong has experienced emigration throughout its history.  Large numbers have migrated to other parts of Asia, and more recently to  Canada, the United States of America, Britain, Australia, and New Zealand.

     Emigration began to be a major problem after the signing of the Joint Declaration between the British and Chinese governments in 1984. Many are clearly anxious about the post1997 situation despite the guarantees so far given.  The level of emigration from Hong Kong rose inexorably in the years 1984-90 particularly among the young, professional groups that Hong Kong could least afford to lose.  Whereas the annual level of emigration was estimated to be around 20,000 in the early 1980s it rose to 30,000 in 1987, 42,000 in 1989 and 60,000 in 1990. (See Joint Declaration).
Environment.

     The increase in the colony's population to over 5.8 million in 1989 has given Hong Kong the highest density of population in the world at 5130 persons per square kilometer.  (In Mongkok, a particularly congested area, the density was estimated in 1988 at 139,594 per square kilometer.)  At the same time the government's policies of limited intervention coupled with industrialization and economic growth have led to increasing problems of environmental pollution.  Inadequate sewage disposal, and a lack of effective laws against industrial effluent, noise and airborne emissions have also been evident.  Housing provision was dense, the streets overcrowded and the increasing use of vehicles led to further air pollution.

     Increasing public awareness led in the 1970s to some limited tightening of government regulations in the areas of air, water and noise pollution, and the creation of an administrative framework to monitor the environmental deterioration.  This was gradually expanded and given greater, but still limited, powers over the next twenty years.  An Environmental Protection Agency was established in 1981 and was upgraded to a department in the 1989. (See Health).

Executive Council.

     The Executive Council was created on April 5 1843 under the provisions of the then Hong Kong Charter.  Its role was to assist and advise the Governor on the governance of the colony.  It was kept deliberately small with no more that three members (excluding the governor) until 1872.  It was then expanded to four members.

     The actual role and powers of the Executive Council were further spelt out in the Letters Patent and the Royal Instructions of 1917.  These two documents which outline the constitution of the colony, stated that, "There shall be an Executive council in and for the Colony, and the said Council shall consist of such persons as We direct by Instructions under our Sign Manual and Signet, and all such persons shall hold their place under our pleasure" (Letters Patent, Article 5).  It also provided for the removal of members "upon sufficient cause", which would have to be provided to the home government.  The actual minimum number was spelled out in the Royal Instructions where it was specified that the membership would include:

1. The Commander of British Forces
2. The Chief Secretary
3. The Attorney General
4. The Secretary for Home Affairs
5. The Financial Secretary

     The above were to be collectively known as the exofficio members. However, provision was made to increase the numbers if deemed necessary. They were to be known as "Official" members if they held office under the Crown, or "Unofficial" members if they did not.  The unofficials, unlike the officials, were obliged to vacate their seat after five years in office, but were not debarred from reappointment.  The Council has always been nonelected, with members being appointed by the Governor-although formally the actual appointments were made by the government in Britain.  Until 1926 when the then Governor appointed Sir Shouson Chow, there were no Chinese on the Executive Council.

     Throughout the inter-war years the Executive Council met once a week, and much of its business dealt with largely administrative matters.  However, despite being an advisory body, it did occasionally provide a restraint on the Governor's power.  The records show that members often disagreed, and votes were taken on controversial decisions which were then often modified as a result.  The Governor was allowed to override the advice of the Executive Council, but this was only done twice by the then Governor May (19121919), and not at all by any other inter-war Governor.

     As the table below indicates, the membership has gradually increased with the unofficials assuming greater significance.  The unofficials on the Executive Council are mostly composed of members of the Legislative Council.  The Chairman of the Hong Kong and Shanghai Bank is by convention a member, also as an unofficial.

                    Officials                    Unofficials
          Governor      ex officio  other

1843          1          0          3               0
1844          1          0          4               0
1845          1          0          3               0
1865          1          3          0               0
1872          1          3          1               0
1875          1          3          2               0
1884          1          4          2               0
1896          1          4          2               2
1921          1          4          2               3
1928          1          5          2               3
1946          1          5          2               4
1948          1          5          1               6
1966          1          5          1               8
1978          1          5          1               9
1984          1          4          2              10
1990          1          4          1               9



     The ratio between expatriates and local people has also changed particularly over the period 196590.

                    Expatriate             Local
1965                    10                    5
1971                    11                    4
1975                     8                    7
1982                     9                    7
1985                 6                    9
1990                     7                    9


     However, the significance of these changes in ethnic composition may be less significant than the absolute dominance of the Council by the civil service and business elite.  The business dominance of the Executive Council has persisted to a greater extent than is the case of the Legislative and Municipal Councils. The composition of the Council in recent years has been:   

               Civil service     Business     Professional     Other
                              & Finance

1965               7               6          3          0
1971               7               6          2          0
1975               7               6          2          0
1982               7               6          3          0
1985               7               7          1          0
1990               7               5          4          0


     In the early 1990s the Executive Council met once a week and could still be loosely described as the Governor's Cabinet. However, with the increase in the administrative load, there has been an increasing use of sub  committees.  The Council's most important task remains to advise the Governor, and to approve legislation to be put to the Legislative Council.

     The Basic Law established that an Executive Council would continue to exist after 1997.  Although no details were provided, it is assumed that its powers, duties and functions will probably be similar to those under the British administration.  However, the position of Commander, British Forces must disappear, and the Basic Law does not mention whether he will be replaced by a counterpart from the People's Liberation Army.  The Basic Law does stipulate that all future members of the Council will be Chinese nationals who are permanent residents of Hong Kong. (See Basic Law; Constitution; Joint Declaration; Letters Patent; Localization; Officials and Official Members; OMELCO; Political System; UMELCO).

Familism.

     A term used in the Hong Kong context to denote the persisting significance to contemporary Hong Kong of traditional Chinese values concerning the family.  Often the term utilitarianistic familism is used to indicate the mixture of traditional values with the colonial and materialistic culture.  Its main assumptions are that:
1. People in the territory have become more concerned with the acquisition of wealth and status.
2. The traditional emphasis on family support which was to be found in the original rural system remains.  Other social groups or the community's needs as a whole have less significance.

     To a large extent social structure is therefore based on the self sufficient family, and a downgrading of interaction with the government or nonfamily social affairs.  This is widely seen as having contributed to a weak civic identity and low levels of political participation.


Federalism.

     Under the colonial administration there was always a bias towards central power.  Given the small size of the colony and the attitude of the British colonial masters this was hardly surprising.  Local subdivisions in Hong Kong were more for administrative convenience with the real political power being concentrated in central government.  In some quarters it was hoped that after 1997 a federal system might evolve with regard to Hong Kong's relationship to the People's Republic of China.  However, the PRC has always been a unitary system, and the Basic Law made it clear that, although the Special Administrative Region might have a relatively high level of autonomy over its own affairs, its powers were limited to those granted by the central government in Peking (Beijing).  Moreover, powers granted to the government of the Special Administrative Region after 1997 could be removed by Peking (Beijing) if deemed necessary. (See Autonomy; Basic Law; District Administration; Political System; Special Administrative Region).


Financial Secretary.

     A position in the Hong Kong government with responsibility for the colony's financial affairs.  Under the Letters Patent and Royal Instructions, updated in 1917, the Financial Secretary was to be an exofficio member of the Executive and Legislative Councils.  The position was guaranteed under the Basic Law.(See Basic Law; Executive Council; Legislative Council).

First World War.

     In August 1914 Britain's declaration of war against Germany automatically involved Hong Kong as part of the British Empire.  All German women and children were therefore required to leave the colony and German men of military age were interned for the duration.  All German businesses were taken over by the government, liquidated, and their assets sold off.  When China declared war on Germany in 1917 their operations in China, which hitherto had not been constrained, were closed down.  Although Hong Kong was not involved in any hostilities during the war, there was some commercial dislocation because of the embargoes on trade with the enemy and some controls on the export of strategic goods.  As was the case in most parts of the Empire a large proportion of the expatriate male community (nearly 25%) volunteered their services to the crown.

Five Dynasties (907-960).

     During the five dynasties the Hong Kong area fell within the control of the Nan Han kingdom. That kingdom established a pearl monopoly at Tai Po in 907, salt commissions, and set up a naval station at Kowloon. It also built a new fort at Tuen Mun which was visited by one of the Nan Han emperors. (See Forts).


Flag and Badge.

     Under British administration the flag representing the territory has the Union Jack placed in the top left hand corner, against a blue background with the emblem in the lower right corner.  The national flag of the territory was the Union flag of the United Kingdom (often referred to as the Union Jack).  As the territory ceases to be administered by Britain after 30 June 1997, a new flag and emblem will be used. Under the Basic Law it was declared that the national flag would be that of the People's Republic of China. The flag of the Special Administrative Region was announced in February 1990 and endorsed in the Basic Law.  It is to be a pink bauhinia flower in the center on a red background.  Each of its five petals is to be adorned with a star.


Foreign Affairs Committee.

     The Foreign Affairs Committee is a select committee of the British House of Commons first set up in its present form in 1979.  Its main function is to scrutinize the conduct of British foreign policy by the executive branch. Its powers, given the nature of the British Parliamentary system, were far less than those of its counterpart in the United States Congress, and there was no obligation for the government to act on any of its recommendations.  The committee made occasional visits to Hong Kong, made recommendations on policy and criticized certain policy decisions relating to the territory.  

The committee itself was bipartisan and had a membership of 11 with 5 subcommittees.  It published a major report in 1989 following a visit to the colony. Among the recommendations were: a faster pace of democratization; forced repatriation of Vietnamese refugees; quick action for the introduction of a Bill of Rights; and renegotiation of the question of the presence of the People's Liberation Army after 1997.  The proposals were debated in the House of Commons, but led to no significant changes of policy. (See Government, British; Parliament, British).


Foreign and Commonwealth Office.

     The Foreign and Commonwealth Office (FCO)is the ministry in the British government responsible for advising on and implementing foreign policy.  It was created from the amalgamation of the Foreign Office and the Commonwealth Office.  In 1967 it took over the responsibilities of the old Colonial Office which ceased to function.  At its head is the British Foreign Secretary who is a member of the government and sits in the British Cabinet.  With regard to Hong Kong its duties are:

1. to convey and explain to the colonial administration the decisions of the British Government;

2. to safeguard the interests of Hong Kong in negotiations with other governments in particular the People's Republic of China;

3  to liaise with other departments in Whitehall concerning any policies affecting Hong Kong.

     Given the PRC's refusal to deal directly with Hong Kong or its government, the FCO is the sole authority with whom the mainland deals on questions relating to the territory.  Consequently the FCO played a large part in the negotiations over the future of Hong Kong between 1982 and 1984.  Under the agreements reached in 1984 the FCO was to be represented on the Joint Liaison Group to monitor the agreements until the handover of power, and was also to provide personnel for the Land Commission.  Under the provisions of the Basic Law the FCO will cease to represent the territory once Hong Kong reverts to the People's Republic of China as a Special Administrative Region.  However, the Joint Liaison Group which monitors the progress of the handover of power will continue to function with an FCO contingent until 1 January 2000. (See Basic Law;  Constitution; Foreign Relations; Government British; Joint Liaison Group).

Foreign Relations.

     Hong Kong's foreign relations were conducted by the Foreign Office ( later to be renamed the Foreign and Commonwealth Office).  One major exception to this occurred when, as a consequence of the Joint Declaration between the People's Republic of China and the United Kingdom, the colony was allowed membership of the General Agreements on Tariffs and Trade (GATT) in its own right.

     At the more informal level Hong Kong has increasingly assumed greater independence in economic foreign affairs.  Since the second world war it has become a member of over 132 international non governmental organizations.  It has set up Hong Kong government offices in London, Geneva, Brussels, Washington, New York and San Francisco, and industrial promotion offices in Brussels, New York, San Francisco, Tokyo and London.  Trade development offices which are not governmental have been established in nearly all the world's great cities.

     The Basic Law states that after 1997 Hong Kong's external relations will be the responsibility of the mainland authorities, although in certain important commercial and cultural areas, a high degree of autonomy may be maintained.
(See Basic Law, Economic System; GATT, Multi-Fibre Arrangements;
Trade).

Forts.  (Chinese).

     Although the earliest written records date only from the early ninth century, it is thought that a naval base had been established at Tuen Mun by the middle of the Han (Han) dynasty (206BC220AD). Protection of the entrances to the Pearl River was a major strategic factor from that time onwards. Forts had been built at the Kap Shui Mun Channel, and probably in Kowloon and elsewhere by the thirteenth century.  The 15th and 16th centuries saw the further construction of small forts around Hong Kong to guard the coasts and to deal with local pirates.  There are four surviving forts dating from the Ch'ing (Qing) dynasty (16641912) all constructed during the early 18th century to guard the strategic passages through the Hong Kong harbor.  One is situated on Tung Lung Island and the other three on the west and east side of Lantau Island.  


Four Modernizations.

 The Four Modernizations were first announced in 1964 by Chou En-lai (Zhou Enlai), but were not made official policy in the People's Republic of China until adopted under that name in December 1978.  They were associated with the reforms proposed by Teng Hsiaop'ing (Deng Xiaoping).  The four modernizations concerned the role of agriculture, industry, national defence and science and technology in national development.  Hong Kong's role in the People's Republic of China's modernization process was seen as crucial by Chinese leaders from the first adoption of the program. (See Economic System; Special Economic Zones; Teng Hsiao-p'ing (Deng Xiaoping); Trade).


Franchise. (See Elections).

Free Port. (See Economic System; Trade).

Free Trade. (See Economic System; Trade).

Functional Constituencies.

     Functional Constituencies were first introduced into the Legislative Council elections in 1985.  The principle justification advanced for the system is that members of influential groups in the territory should be guaranteed representation in the legislative assembly.  Initially twelve such constituencies were created, many with highly individual and complex electoral processes.  Areas of functional representation included industrial interests, commercial interests, labor interests and the social services.  The number of functional constituency seats was increased in 1988 to 14 and in 1991 to 21.  The Basic Law allows functional constituencies to play a major part in the future Legislative Council.  In its first three terms after 1997, 50% of the membership of the Legislative Council will come from these constituencies.
(See Legislative Council; Pressure Groups).

Fung Shui (Feng Shui). (Wind and water).
     Concerned with the rudiments of natural science and of Chinese origin, fung shui involves manipulation of the supposed divine powers of nature which are thought to govern the actions of people.  The method and practical application of modern fung shui are primarily based on the teachings of Chu Hai, who lived during the Sung (Song) Dynasty . He traced the Creation from one abstract principle, called "absolute nothing" which evolved out of the "great absolute".  When this was in motion its breath and vital energy produced the active, or male element, and, when it rested, the female principle was born.  The "supreme cause" divided things above to become heaven and that which was below to become the earth.  As motion and pause succeeded one another, men and animals, vegetation and minerals took their place in nature. The perpetual energy produced by these two contending principles is "Chi" or breath of nature. This works according to two sets of laws, known as "Li" and "Shu" which could be traced mathematically and illustrated in diagrams and numerical proportions. Li and Shu, acting in nature, produce forms which are recognizable to the human eye called "Ying" and these four manifestations constitute the system of fung shui.

     Every hill and tree influences the fung shui of the locality. One of the principle duties of those adept in fung shui is to locate suitable locations for tombs, as the belief is that one of the souls of the deceased inhabits the grave, and, unless it is disposed of comfortably, it will not be sympathetic towards any petitions by its descendants.

     Today fung shui experts are consulted regularly by a wide cross section of the population in the colony, and are usually brought in to advise on the correct layout of houses or offices.
Gang of Four.

     A term given to a group of people who were highly influential in Mao Tse-tung's (Mao Zedong's) declining years and who tried to take over power after his death in 1976.  The four were Chiang Ch'ing (Jiang Qing) (Mao's second wife), Chang Ch'un-ch'iao (Zhang Chunqiao), Yao Wen-yuan (Yao Wenyuan) and Wang Hung-wen (Wang Hongwen).  They made a major attempt to seize power in 1974 using the mass media and attacks on other political leaders and were protected by Mao. However, Hua Kuo- feng (Hua Guofeng), Mao's named successor had them arrested in October 1976 to foil what many believe was an imminent coup. They were subsequently expelled from the party and put on public trial in 1980 along with ten others.  Chiang Ch'ing (Jiang Qing) and Chang Ch'un-ch'iao (Zhang Chunqiao) were sentenced to death but later reprieved, and the other two were sentenced to long terms of imprisonment. (See Cultural Revolution; Mao Tse-tung (Mao Zedong)).

GATT.

     The General Agreement on Tariffs and Trade began operations in 1948.  Its objectives were to expand and facilitate international trade and to minimize protectionism by member nations.  Throughout its history it has been a major forum for resolving trade disputes, reducing tariffs, quotas and other trade barriers and preferential trade agreements.  Hong Kong was allowed to become a full contracting member of GATT in 1986.  The Basic Law allows for the territory's continued membership after the reversion of Hong Kong to Chinese sovereign control in 1997. (See Economic System; Trade).


Gazette, The Government.

     The Government's Gazette has been published regularly since 1841.  It lists proposed legislation, government appointments and any other matters of official business which are required to be officially promulgated.  It also contains many other items of nongovernment information.  From 1862 the Gazette has been published in Chinese as well as English.

General Strike.

     In the years 19251926 the unrest in the colony culminated in a general strike and a general boycott of British goods.  Discontent was encouraged by the growth of nationalist sentiment throughout China and popular resentment of privileges accorded to foreigners.  During May 1925 an anti-Japanese demonstration in Shanghai expanded into a more general antiforeign sentiment.  The size of British interests in Shanghai also made them a clear focus for unrest.  As discontent spread the labor unions in Kwangtung (Guangdong) province demanded a strike against the British in Hong Kong and South China.  The seamen came out first in June 1925 and other trades quickly followed suit.  On June 23 a mass demonstration in Canton (Guangzhou) was fired on by British and French troops in Shamien (Shamian) island which left 52 dead. This inflamed the situation further and the strike intensified.  Its effects were, however, mitigated by contingency plans drawn up by the Hong Kong government.  The Volunteer Defence force was called out, emergency regulations were activated, essential services were maintained by volunteers and higher pay offered for those who wished to work.  By September the worst of the strike was over, but the boycott remained a serious threat to the colony.  It was actively supported by the Kwangtung (Guangdong) government which stopped all British and Hong Kong Chinese shipping from  entering Canton and other southern ports. These ports were manned by pickets who enforced the boycott. The boycott ended in October 1926 partly because the Canton government balked at the strike's effects on their revenue, partly because of a show of force by the British when naval troops sailed up the river to Canton and cleared the strike pickets from the wharfs, and partly because of the Hong Kong government's refusal to discuss compromise.

     The costs to the trading companies were estimated by one source to be in the region of $500,000,000, and it took many years for the colony as a whole to recover from the effects of the dispute.


GIS (Government Information Services).

     The formal title of this branch of government is the Informational Services department.  It was set up after the second world war as a press relations office.  It became a department in the early 1950s, and, particularly after the disturbances of the 1960s, began to be seen as a potentially important means of informing the press and the media of government policy and proposed legislation. (See Cultural Revolution; Disturbances; Star Ferry Riots).


Godber Affair.

     A major incident in the post-war history of Hong Kong which led to major changes in the systems for the control of corruption.  In 1970 an investigation was launched into the case of Chief Superintendent Peter Godber who had amassed financial assets far greater than his official salary.  Godber escaped to the United Kingdom, possibly with the collusion of government officials.  A commission of enquiry strongly criticized existing procedures and allowed the then Governor Sir Murray MacLehose to create in 1974 a new body, the Independent Commission against Corruption which had considerable power to deal with cases of public and private corruption. (See Independent Commission Against Corruption; Royal Hong Kong Police Force; Sir Murray MacLehose).


 Government, British.

     From its inception as a colony the constitutional position of Hong Kong vis a vis the British Government has remained relatively constant. For Hong Kong the British government was technically the Crown with the monarch advised by his or her ministers.  All colonies were acquired by the Crown, which then created their governmental systems.  However, effective control over the territory's government was held by the Cabinet and the department of state responsible for administering Crown territory.  This was originally the Colonial Office, but, on the abolition of that office, the functions were taken up by the Foreign and Commonwealth Office.  At the formal and constitutional level the Crown can divest itself of its colonies and can adopt any policy it wishes towards those possessions without reference to Parliament. But in practice and through convention Parliament is a regulator of policy and its approval is essential.

     The practical consequences of all this were as follows:

1.  The Hong Kong government was answerable to the Crown through the Colonial Office and after 1967 to the Foreign and Commonwealth Office (FCO).

2.  All senior Hong Kong government appointments had to be ratified by the Crown.

3.  The Governor had to make regular reports to the Crown via the Colonial office and the FCO.

4.  All direct, formal representations had to go via the Colonial Office or later the FCO. (See Constitution; Foreign and Commonwealth Office; Governor; Parliament, British).


Government House.

     Government House was built in 1855 near to the Cathedral and the residence of the Commander of British forces.  It has since been the official residence of the Governor of Hong Kong except for the period of the Japanese occupation (194145).


Government Information Service. (See GIS).

Governor, The.

     Since 1841 there have been twenty-seven Governors and two Administrators. They have been:
Capt. Charles Elliot     Administrator          1841*
Sir Henry Pottinger          Administrator     18411843*
Sir Henry Pottinger          Governor           18431844
Sir John Davis              Governor          18441848
Sir Samuel Bonham          Governor          18481854
Sir John Bowring          Governor          18541859
Sir Hercules Robinson      Governor          18591865
Sir Richard MacDonnell     Governor          18661872
Sir Arthur Kennedy          Governor          18721877
Sir John Pope Hennessy     Governor          18771882
Sir George Bowen          Governor          18831885
Sir George Des Voeux     Governor          18871891
Sir William Robinson     Governor          18911898
Sir Henry Blake          Governor          18981903
Sir Matthew Nathan          Governor          19041907
Sir Frederick Lugard     Governor          19071912
Sir Francis May          Governor          19121919
Sir Reginald Stubbs          Governor          19191925
Sir Cecil Clementi          Governor          19251930
Sir William Peel          Governor          19301935
Sir Andrew Caldicott     Governor          19351937
Sir Geoffrey Northcote     Governor          19371940
Sir Mark Young               Governor          19411947
Sir Alexander Grantham     Governor          19471957
Sir Robert Black          Governor          19581964
Sir David Trench          Governor          19641971
Sir Murray MacLehose     Governor          19711982
Sir Edward Youde          Governor          19821986
Sir David Wilson          Governor          1987

     *The term "Administrators" was used prior to Hong Kong becoming a colony, until 1843. Although not mentioned here, the term "Administrator" ("Officer Administering the Government") was also used for persons acting for the Governor during his temporary absence.

     The powers of the Governor were set out in the Letters Patent and the Royal Instructions, documents which were updated from time to time as circumstances required.  The post involves considerable formal powers granted by these and other documents such as the Colonial Regulations.  In the Colonial Regulations the post is described as, " .... the single and supreme authority responsible to and representative of, Her Majesty ...entitled to obedience, aid, and the assistance of all military, air force , and civil officers..."

     The Governor is the Chief Executive of the Hong Kong government, President of the Legislative Council, the person who appoints all judges and magistrates.  Governors also act as leaders of the Executive Council, a body which they appoint to act in an advisory capacity.  The Governor is, however, subordinate to the British Crown and to the laws of Hong Kong, and is normally restrained by convention and common sense.

     Under the terms of the Basic Law, the office of governor will cease to exist after the resumption of Chinese sovereignty.  In its place will be a Chief Executive, whose formal powers will be less extensive and more subject to restraint. (See Basic Law Constitution; Governors (Various); Letters Patent; Royal Instructions).

Grand Electoral College.

     An arrangement first drawn up in 1987 to elect indirectly members of the Legislative Council and the first Chief Executive after 1997.

     The Basic Law stipulates that 10 members of the first Legislative Council would be elected by a Selection Committee, which in turn would be selected by a Preparatory Committee, composed of 50% of members from the mainland and 50% from Hong Kong.  The Selection Committee would be made up entirely of permanent residents of Hong Kong, with a total membership of 400 from various sections of the community.  The same Selection Committee was empowered to select the first Chief Executive.

     For subsequent Legislative Council assemblies, it was stated that an Election Committee would be formed with 800 members.  These would be drawn from industrial, commercial and financial sectors (200); the professions (200); labor, social services, religious organizations and other sectors (200); and members of the Legislative Council, district organizations, Hong Kong deputies to the National People's Congress and Hong Kong members of the National Committee of Chinese People's Committee of the Chinese People's Political Consultative Conference(200).  In the second term the number of Legislative Councilors elected in this way would fall to 6, and by 2003 the system would have ceased.  The Election Committee would, however, remain responsible for the election of the Chief Executive. (See Basic Law).


Grantham, Sir Alexander (18991978).

     Governor of Hong Kong from 1947 to 1957.  He came to office with considerable experience of the colony, having previously served 13 years there in another capacity.  His main role was to guide the colony through the difficult postwar years particularly following the establishment in 1949 of the People's Republic of China, and the years of the Korean war.  His policies were avowedly laissez-faire in economic affairs, but were coupled with the continuation of strong central government authority.  During his term of office the development of the textile industry and the export-led economy began to take shape.
(See Economic System).


Great Leap Forward.

     A policy launched by Mao Tse-tung (Mao Zedong) in 1958 in an attempt to increase rapidly industrialization in the People's Republic of China.  The aim was to achieve an economic growth of 25% per annum.  Based on the idea of self sufficiency, it aimed at the expansion of small local socioeconomic units.  The policy failed completely and was abandoned in 1961, at an estimated cost, inter alia, of approximately 14 million people who died mostly of starvation. (See China, People's Republic of; Mao Tse-tung (Mao Zedong)).

Group of 89.

     A conservative pressure group, drawn mainly from the business and professional sectors, which was active during the drawing up of the Basic Law.  It favored minimum changes in the political system of Hong Kong after 1997.  More specifically it stressed the need for a limited franchise, the avoidance of party politics and the maintenance of an independent judiciary.
(See Pressure Groups).

Group of 190.

     This group was formed after the Joint Declaration on the future of Hong Kong as a counterweight to the more conservative Group of 89.  It was liberal in outlook and attempted to widen the franchise, increase direct elections to the Legislative Council, and to push for maximum autonomy for the future Special Administrative Region after 1997. (See Political System; Pressure Groups).


Guangdong. (See Kwangtung Province).


Guomindang. (See Kuomintang).


Gurkhas, Brigade of.

     A mercenary force recruited from Nepal and originally raised by Britain in the mid19th century for service in India.  After Indian independence from Britain in 1948, Gurkha regiments continued to serve in the British army. For much of the post-second world war period Gurkha infantry battalions were stationed in Hong Kong as part of the British military garrison.  They will remain in Hong Kong until the handover to the People's Republic of China. (See Armed Forces).


HaddonCave, Sir Philip.

     One of Hong Kong's longest serving Financial Secretaries.  He coined the term "positive noninterventionism" to describe the government's minimal role in the economy.  During his period of office (19711981) he helped oversee a period of substantial economic growth.  He was later made Chief Secretary in 1981 and held that office until 1985. (See Chief Secretary).

Hakka.

     Until 1669, most people in Hong Kong area and the Pearl River estuary had been Cantonese speaking.  After 1669, however, the depleted Cantonese clans who returned after the military campaigns against Koxinga were unable to bring back into cultivation all the lands they had previously controlled.  The imperial Government, anxious not to loose the taxes from these lands, urged the old families to sell off land to new settlers.  These were mostly Hakka speakers from the northeast.  Between 1669 and the mid eighteenth century hundreds of Hakka groups moved into the area, taking up the more marginal lands in the mountains, particularly in the east.  It was this mixed society, of old Cantonese clans in the fertile west,  newer Hakka families in the less fertile east, plus a few groups of Tanka and Hoklo boat people, that characterized the area when the British first appeared on the scene.  
(See Ch'ing (Qing) Dynasty).

Han (Han) Dynasty (206 BC-220 AD).
     The Han (Han) Dynasty ruled China from 206 BC until 220 AD. It was divided into the Eastern and Western Han (Han) periods. The Hong Kong region was effectively independent as part of the Kingdom of Nan Yueh from 208 BC until 111 BC, when it was conquered by the armies of the Eastern Han (Han). Eastern Han (Han) occupation of the area is evidenced by the excavation of a tomb discovered at Lei Cheng Uk, thought to date from the early to middle Eastern Han (Han) period. The region was part of the Nan-Hai prefecture under the Han (Han). There was no real attempt to colonize the region during this period. It was used as a base for trade in valuable commodities with military and naval occupation. It is thought that a naval base at Tuen Mun may have been constructed at this time. (See Forts; Lei Cheng Uk Tomb).

Hansard, Hong Kong.

     The Hong Kong Hansard has provided an official record of Legislative Council debates from the nineteenth century to the present day.  Debates in the Executive Council have remained confidential.

Harwell Report.
     The Harwell report was commissioned as a consequence of the public unease over the building of a nuclear power station in Daya Bay, in close proximity to Hong Kong.  Its findings, published in 1988, recommended appropriate contingency measures to be taken by the Hong Kong government in preparation for any emergency. (See Daya Bay).


Head of Government.

     The head of government in Hong Kong since 1843 has been the Governor.  He is the head of the executive branch and President of the Legislative Council.  Hong Kong's colonial status rules out the role of a separate head of state.  The Basic Law identifies the Chief Executive as the head of government after from 1997. (See Basic Law; Constitution; Governor; Letters Patent; Political System).


Head of State.

     Because of its colonial status the head of state for Hong Kong has always been the Crown of the United Kingdom.  Since 1952 Queen Elizabeth II (1926) has been head of state for the colony.  Under the Basic Law, the head of state for the Special Administration Region will be the President of the People's Republic of China. (See Basic Law; Queen).

Health.

     From the first days of the occupation of the colony there were periodic outbreaks of communicable diseases.  Records indicate that in the year 1843 over 100 men of a British regiment lost their lives to "fever". Indeed the colony gained the reputation of being a particularly unhealthy place.  As the population grew, the absence of any measures to regulate building and sanitation, led to typhus, typhoid and cholera becoming endemic in the colony.  Hospital provision was limited, as were the medical means to deal with the sick.  With the cholera outbreaks in Britain in the mid-nineteenth century and the connection being made between health and living conditions, attempts, at first half-hearted but later more positive, were made to promote public health.  In 1866 an Order and Cleanliness Ordinance was passed forbidding the housing of pigs and other similar animals in dwellings, as well as the creation of a Sanitation Board.  The Chadwick report of 1882 recommended the proper disposal of waste and night soil, the provision of clean water, the reduction of overcrowding and other similar measures.  The problem came to a head, however, with the outbreak of bubonic plague in the spring of 1894 and in each of the next six years.  In 1896, 1088 fatal cases were reported: in 1898, 1,175; in 1899, 1,428; and in 1900, 1,434.  Further outbreaks continued until 1920.

     During the 20th century tighter regulations on sanitation and housing, combined with improved preventative and curative measures led to a dramatic decrease of communicable diseases in the colony.  During the post-second world war era better education, nutrition and the provision of improved medical services has virtually eradicated malaria, cholera, typhus, typhoid, leprosy and amoebic dysentery.  Rabies was eradicated except for minor imported cases from time to time.  Tuberculosis remained a problem in the 1950s and 1960s with the numbers averaging 25,000 under treatment in any given year.  Infant mortality was reduced from 37.7 per 1000 live births in 1961 to 19.6 by 1970.  The major hazards to health increasingly became those associated with those of developed countries.  By 1990 tuberculosis cases were down to 382 with no other major communicable diseases recorded.  Life expectancy at birth in 1990 was 74.6 for males and 80.3 for females, figures which compare favorably with any country in the world. (See Chadwick Report; Housing).

Hennessy, Sir John Pope.

     Governor of Hong Kong from April 1877 to March 1882.  Generally regarded in retrospect as a liberal and far-sighted Governor of the colony.  He alienated the more conservative members of the European community in the territory.  In particular his promotion of more lenient punishment of Chinese criminals, campaigning against branding and deportation and flogging, led to him being unfairly accused by the expatriates of encouraging crime.

     He also attempted to reform the Legislative Council, argued for the inclusion of a Chinese member on the Legislative Council, and had considerable success in expanding the educational system.  However, he was frequently in dispute with the colonial administration.  By the time he left the colony in 1882 he was widely seen in the colony as an inefficient administrator, unable to delegate authority, and he was not on speaking terms with most of his administration except for official business. (See Governor; Legislative Council).



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