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Essay Subject: Hong Kong's history examined through 1992, with speculation of its status after 1997. Presents major events & players both within Hong Kong & externally.... More...

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Paper Abstract: Hong Kong's history examined through 1992, with speculation of its status after 1997. Presents major events & players both within Hong Kong & externally. Paper Introduction: INTRODUCTION In 1997, the status of Hong Kong will change. Hong Kong has been one of two Chinese areas - the other being Macao - under the control of foreign powers. The Chinese see these as "problems left over from history," and they were the result of imperialist aggression and incompetence on the part of Chinese rulers in the nineteenth century. Hong Kong has been under British control as the result of three treaties with the Chinese from the last century, but in the mid-1980s China concluded formal agreements with Britain for the return of Hong Kong in 1997. The Hong Kong area, fearful of being returned to Red Chinese dominion, has been given a high degree of autonomy in the agreement with Britain, and it will be considered a "special administrative region" of China. Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 11 ). From their own past they took the idea of the "united front," or thecoaptation of supportive non-Party groups and individuals, and thetechnique of campaigns to mobilize the masses for social change. Chinese politics as instituted in 1949 had certain goals, and theissue is quite complex. In 199 there werealso more than 55, Vietnamese refugees confined in camps and awaitingeither resettlement overseas or repatriation to Vietnam. But they continue to feel a strong tie to the mainland, even though they reject its politics. The Hong Kong area, fearfulof being returned to Red Chinese dominion, has been given a high degree ofautonomy in the agreement with Britain, and it will be considered a"special administrative region" of China. many of these treaties concluded in the past either have lost their validity, or have been abrogated or have been replaced by new ones. . The different factions in HongKong, usually enemies, came together on this issue and voiced their supportfor the demonstrators in Beijing. Certain traditionalpractices were eliminated by law, such as the excessive domination of menover women which was outlawed in a new marriage law. China from the 1911 revolution to liberation. Clearly, the U.S. The U.K. The Chinese leaders seemed to be wondering whether Hong Kongmight "contaminate" the mainland with democratic ideas, though the Chinesewanted Hong Kong's investment capital and business expertise to bolstertheir own ailing economy. (Rafferty, 1989, p. . the opinion of most educated Chinese in Hong Kong. Kaplan, Sobin, and Service (198 ) note that partof the complexity in sorting out what changes were made and why stems fromthe fact that key decisions were and are made in secret by a small numberof people. The results were notgood and indicated the essential reality that Hong Kong will be returned toChinese control no matter what. Hong Kong: In search of a future.Hong Kong: Oxford University Press.Chesneaux, J., Le Barbier, F., & Bergere, M. 84). (1989, June 3). Most Chinese are Buddhists or Taoists, with smaller numbers ofChristians and Muslims among them. The massive demonstrations in Tiananmen Square in 1989 were watchedby the whole world as foreign television beamed the events out of China bysatellite. The business community feared whatthis would mean for their ability to continue to conduct business insideand outside China. Trade with Hong Kong and withWestern countries has revived in China an interest in law and politics, theformer stimulated by the need for Chinese lawyers to negotiate with foreignfirms and both motivated by the need for competent internationalnegotiators to handle the legal and political aspects of China's resumptionof sovereignty over Hong Kong (Mackerras & Yorke, 1991, p. Negotiations between Britain and theRepublic of China remained deadlocked over the issue of the return of theleased territories of Kowloon, the New Territories. For Hong Kong, the failed revolt inChina brought about a concern about the value of the basic Law. There wasanother sign of unease in the growing evidence of dishonesty by employeestrying to earn enough money to emigrate. 7 )What emerged was a new, mass politics, but as Kaplan, Sobin, and Servicestate, this was only the beginning: "Social transformation had yet to beaccomplished in other areas, and the grand task of economic development hadbarely begun" (p. . Hong Kong has been separated from China only by the artifice ofpolitical arrangements and was entirely free to pursue its own economicpolicies (subject to British approval) for a century before it was occupiedby Japanese troops in 1941. Whenthe Communists came to power, it was after years of political and militarystruggle. As the demonstrations were taking place in TiananmenSquare, Hongkongers began objecting to some of the provisions of the BasicLaw and also changed course on the stock market, with the market going upand down all week as the demonstrations continued. 9)Some days after the massacre William Waldegrave, Minister of State at theForeign Office, expressed his (and presumably his government) faith inChina: Mr. Waldegrave suggested that the need to show trust towards [Beijing] imposed a constraint on Britain's response to events in China and their implications for the colony. 14). After 1949, when the traditional entrepot trade with China declined,businessmen from Shanghai who were fleeing from the Communists, localentrepreneurs, and the old British trading houses set up many newindustries, making use of the cheap labor of the mass of refugees. An examination of the issues will showhow Hong Kong has been affected by the tiananmen Square massacre to date,what the likely repercussions will be as 1997 approaches, and what mayhappen after 1997.HONG KONG Hong Kong has one of the highest population densities in the world -5,412 persons per square kilometer (or 14, 5 per square mile). Hong Kongis vital to the U.S. This territory wasoriginally sought by Britain because of its magnificent natural harbor,Victoria Harbour, and during the 19th century it was the main entrepot(trade center) for Western commerce with China. Cambridge, Massachusetts: Harvard University Press.Cheng, J. However, the old men who rule China wereunmoved, and they turned the Chinese propaganda machine threateninglyagainst Hong Kong, describing Hong Kong as a "hostile foreign force" forproviding money to Beijing students. New York: The Asia Society.Chiu, H., Jao, Y.C., & Wu, Y. and Great Britain had entered the war against Japan in 1941, theRepublic of China under the leadership of Chiang Kai-Shek became an ally.The two Western countries entered into negotiations with the Republic ofChina over the possible abolition of their extraterritorial and otherspecial rights (such as concessions, inland navigation, stationing troops,and similar agreements) in China. The CCP looked both to its ownpast and to the example of the Soviet Union for ideas as to how to proceed. The CCP made a number of innovations that laid thebasis for future changes: First was the restoration of unity and order. An unprecedentedly large and powerful political machine had ended decades of disunity and put a large dent in several centuries-old social customs and institutions. (198 ). However, oncethe U.S. In 1941 the Japanese invaded Hong Kong and occupied it until the endof World War II, at which time colonial rule was restored (Hennessy, 1969,pp. M., Julian M. (1989). When Red China emerged after the war, thequestions asked was how long would this giant tolerate a capitalist economyon its doorstep: The rise of China, the diminishing of Britain, and the deep disfavor into which colonialism fell after the Second World War combined to make the position of Hong Kong look extremely uncertain. 1-2)The lease over the New Territories runs out in 1997, and in the early 198 sthe prospect of this occurrence was already causing problems for Hong Kongas investment was backing away from the uncertainty. There is something deep in the Chinese state which says treaties should be kept. Such aviolent attack against a demonstration in favor of democracy raised thelevel of concern in Hong Kong about Red China's intention to honor thespirit of the agreement with Britain once Hong Kong was returned to Chinesecontrol. did not respond at thattime, and in late 1949 the Nationalist government moved to Taiwan, afterwhich the United Kingdom withdrew its recognition of the Nationalistgovernment. 2 4-2 5)The turmoil made businessmen understand the need to be more aware ofpolitical factors and their link to economic factors, and many Hong Kongmanufacturers started looking at Taiwan, the Philippines, and other placesin south-east Asia as well as re-examining Hong Kong itself for the sitefor future manufacturing plants (Rafferty, 1989, p. M., & Service, J. The effort was quite successful, and by 1952 the economy wasrebounding to prewar levels (pp. And although the city state has survived and prospered greatly for over thirty years, concern about its legal and political future has recently become widespread and has begun to have some influence on current economic decisions. The Chinese see these as "problems left over from history," andthey were the result of imperialist aggression and incompetence on the partof Chinese rulers in the nineteenth century. It waswidely believed that the decision to impose martial law on thedemonstrators was unconstitutional, making the Basic Law a weak piece ofpaper in the future. . (Kaplan, Sobin, & Service, p. thecolony's second largest food-supplier, behind China. Communist armies reached the frontier in 1949 after theirvictory in the Chinese civil war, but no attempt was made to invade HongKong at that time, though the Chinese government did repeatedly declarethat the treaties governing Hong Kong had been imposed by force and werenot binding (Miner, 1993). Perfidious albion: The abandonment of Hong Kong 1997. These are the questions raised by the two sides in the debate, withsome feeling that anything that brings China closer to the rest of theworld will have a salutary effect over time, while others believe thatChinese leaders are so set in their ways that they will do anything andabrogate any agreement to maintain their power and to impose their ideas oneveryone under their sway. multinationals had lost as much as 25percent of their managers, and they said that if the exodus continued theywould have to consider pulling out of the region altogether. 4-5).The People's Republic of China The Chinese Revolution in 1949 altered the structure of mainlandChinese society both in the immediate by shifting from the previous regimeto a Communist system and in the long term in efforts to alter the degreeto which Chinese traditions would be followed or changed. Others suggested that if the colony as a whole were not involved,some were doing this with the support of the United States (Rafferty, 1989,p. Chinese officials began making statements thatcontradicted their original hands-off policy. The British rejected the idea that theyshould renegotiate the issue with China. Hong Kong has become a prosperous region and will indeedbe an asset to the People's Republic of China if it is allowed to continuein its capitalist tradition. A minority had always felt this way, convinced thatthe Chinese would not allow a treaty or agreement to deter them if theywanted to do something. (McGowan, 1992, p. In 199 , China promulgated a Basic Law (constitution) forthe Hong Kong Special Administrative Region after 1997, providing that one-third of the members of the legislature will be directly elected, and thatthe chief executive (appointed by the Chinese government) will have greaterpowers than the existing British governor. Kaplan, Sobin, and Service further note the success of this effort: Thus within three years of establishing nationwide control, the new regime had set China on a new course. In the economic sphere, measures were taken to bring the hyperinflation of the late Nationalist era under control and stabilize credit and commodity markets. (199 ). Commercial development soonattracted thousands of migrants from the mainland, an inflow of immigrantsthat has continued ever since, particularly at times when China has beenconvulsed by war or internal disorder. What was the response on the Chinese side? INTRODUCTION In 1997, the status of Hong Kong will change. It was also the shock of surprise. (Rafferty, 1989, p. . (1989). City on the rocks: Hong Kong's uncertain future. (1987). About 5 , HongKong residents emigrate each year, mostly to North America or Australia,either because they are seeking better economic opportunities or becausethey are fearful of their future under Chinese Communist rule now that HongKong is being returned to Chinese sovereignty. This was an essential element in economic development,because the old regime of landowners had deliberately blockedindustrialization, seeing it as a drain on their manpower resources and away of freeing the peasants. Leading exports today includetextiles and clothing, electronics, clocks and watches, domesticappliances, and plastics. During the next several years, there were many campaigns to changesociety, and the CCP and its related organizations managed to make somechanges quickly while others took a good deal of time. The rest of the world may not have had the sameperspective, but it did have the same sense of shock: It was not only the gruesome spectacle of violent death that shocked. As the demonstrations were taking place, Hong Kong and the Britishwere watching closely. U.S. In the military sphere, this meant ridding the landscape of private armies and confiscating private supplies of weapons. The official response of the West, however, has not been strong enough toallay the fears of the people of Hong Kong, and the United States continuesto provide China with most-favored-nations status in spite of complaints bythose who feel that China has lost the right to such status. 7 ) It is important to note that the desire to change Chinese society wasnot the Communist Party's alone, and the success of the party came aboutbecause it joined forces with movements outside it that had similar goals,notably the peasant movement which started at the same time as the CCP andfor many of the same reasons and which was guided by the CCP, the nationalmovement, the workers' movement, and the student movement. They wantedthe economy to continue to function well, both for Hong and for China,while at the same time it would be possible to institute political reforms(Ching, 1985, p. Mao's victory was celebrated in 1949 when nearly onemillion young supporters filled Tiananmen Square, and parades were held asforeigners were kept away. (1992, December 5). (Brook, 1992, p. 2-3)Thus, in Hong Kong after negotiations between the British and the Chinesehad led to the ceding of Hong Kong back to China in 1997, there was hopefor a smooth transition and also hope that the Chinese would live up to thebargain they had made and would maintain a measure of freedom for HongKong. The effort to change Chinese society began beforethe Revolution, with the efforts of the Communists first to attract peopleto their cause and second to make that cause understandable as a forcewhich would empower the people and lead them to revolution. 7).History Britain seized Hong Kong to secure a base for the opium tradersexpelled from Canton (Guangzhou) at a time when it was only a barren rockoccupied by a few communities of fishermen. However, this outflow ismore than counterbalanced by legal and illegal immigration from China, sothe population is increasing. The British administration of HongKong was established in three stages: 1) Britain defeated China in the Opium War from 1838-1842, and Chinathen agreed to cede the island of Hong Kong to Great Britain in the Treatyof Nanking. Financial statements donot have to be filed if a U.S. ReferencesAmerican Academic Encyclopedia, (1993). There was a certain cost in thiseffort that may have delayed economic reconstruction, but the Chinese sawit as an important effort. 84). as well as a specific market, for it ranks among thetop three markets worldwide for selected agricultural products, cutdiamonds, and cigarettes. After theRevolution, efforts at changing society were undertaken in a moremethodical and all-inclusive manner, and many traditional institutions wereeither dismantled, prohibited, or downgraded in the effort to modernize andto bring about a new political and social attitude on the part of thepeople. we have always held that, when conditions are ripe, they should be settled peacefully through negotiations and that, pending a settlement, the status quo should be maintained. 2) Britain again defeated China in the Arrow War form 1858 to 186 ,and China then agreed to cede the southern part of the Kowloon Province,about 3.5 square miles, with the Treaty of Peking. One political party was now in power, and this fact wasremarkable in itself. Hong Kong: API Press. These differentsectors in society also wanted change in society and were working to thatend right up to and through the Revolution (Chesneaux, Le Barbier, &Bergere, 1977, pp. 223). China has followed different modelsof development during the history of the present system in trying to copewith the problems encountered: "The stated goal of each strategy has beensocialist development and the ultimate transition to communism" (Strayer,p. This was based on the fact that Red China had essentially adopted anattitude of laissez-faire toward Hong Kong over most of its history,calling for its return but doing nothing to effect it, and indeed profitingfrom the economic strength of Hong Kong.AFTER TIANANMEN SQUARE This attitude of hope and even optimistic expectation was challengedby the events in Tiananmen Square in 1989. It was in fact one of the primary reasons for theRevolution itself. (Chiu, 1987, p. New York: Viking Press.We Are Chinese, If You Please. TheChinese people looked back over a decade of economic reforms and slowpolitical liberalization and believed that the harsh policies of earliertimes were over. L. A people misruled: Hong Kong and the Chinese stepping stone syndrome. 4 4-4 5). From the beginning, in spite of its nationalistic, revolutionary, andanti-imperialist policy, the People's Republic of China (PRC) has had animportant stake in maintaining the prosperity of Hong Kong, since itacquires about 4 percent of its foreign exchange through its annual tradewith Hong Kong. The first question asked was whether Britain could go ahead now andturn Hong Kong over to Red China, and the British quickly showed that theywould do just that: The British government was quick to point out that [Beijing] had promised in the agreement that the colony would not be absorbed into China, but would be permitted to maintain its autonomous existence for at least fifty years after 1997 as a special administrative region under Chinese sovereignty, and was specifically allowed - indeed commanded - to maintain its capitalist way of life. China's crisis, China's hope. The Cambrisdge handbook of contemporary China. (1989, May 27). Many in Hong Kong then demandedto be allowed to live in Britain, but this was also rejected by theBritish. HongKong had considerable success in exporting manufactures to Europe and NorthAmerican, and this attracted substantial investment by American andJapanese firms beginning in the 195 s. (1977). The campaign again mobilized support from thecountry. The new constitution for Hong Kong was being drafted as thedemonstrations started, and nitpicking over various provisions had beentaking place for some time. Today, the United States has an estimated $7.1 billion invested inHong Kong, which is more than twice what it has invested in China andnearly a quarter of all foreign investment in Hong Kong. . The Chinese Nationalist party saw the three treaties under which theUnited Kingdom established its rule over Hong Kong as "unequal treaties,"and one of the goals of the Nationalist party was to overturn such treatiesand recover Chinese territories lost to foreign countries. The official line had been that the average personin Hong Kong was apathetic to the changeover, and the debate over the BasicLaw had been carried on by only a tiny minority. 34-36.Yee, A. (1969). 84.Binyan, L. But Hong Kong's growing domestic trade with China will decline if growth in the People's Republic falls. There are only minimal governmentcontrols or disclosure requirements on businesses. Hong Kong has been oneof two Chinese areas - the other being Macao - under the control of foreignpowers. The onetime this did occur was in 1967, when there were serious riots in Hong Konginspired by the Cultural Revolution in China, but apart from this theChinese government left the colony undisturbed, most likely because up to4 percent of China's foreign exchange earnings are derived from trade andcommercial transactions with the colony of Hong Kong. Landlord power was broken with the land reformeffort. 17). It was evident that the way eventsfinally ended in Beijing would influence the thinking of the Hong Kongside. 85). 347-348). P. The Beijing media singled out HongKong twice in three days for backing "unlawful activities" aimed atsubverting the Chinese government and toppling its system. Land reformwas given priority, as might be expected from a regime that had come topower with the particular support of the peasants. company is a wholly-owned subsidiary ofanother company. 33). (Ching, 1985, p. It is the world's largest buyer of Americanfrozen poultry, apples, citrus fruits, and tobacco, making the U.S. The people of Hong Kong thus haveto learn to deal with it. Many companies withfactories in China have started wondering if they have made a mistake.Some estimates have it that by the end of 1988 more than 9 percent of HongKong companies in garments, toys, and electronic goods had at least some oftheir production done across the border in Guangdong. Will this mean changes in Red China, or will Red China change HongKong? During this period, the policy of the United States was to make Chinaa strong and stabilizing force in East Asia once Japan was defeated, andthe U.S. Aneditorial in the People's Daily in the PRC in 1963 offered the followingrationale for the Chinese policy toward Hong Kong: At the time the People's Republic of China was inaugurated, our government declared that it would examine the treaties concluded by previous Chinese governments with foreign governments, treaties that had been left over by history. (Rafferty, 1989, p. 3) In 1898 China was compelled to lease an additional 365 squaremiles to Great Britain for a period of 99 years, a region called the NewTerritories. Concerns in Hong Kong have been exacerbatedby the events that took place in Tiananmen Square in Beijing in 1989 whenthousands of demonstrators seeking more democracy in China were attackedrouted, and many killed by Chinese troops acting under the direction of theleadership, which wanted to protect the existing Communist system. An immediate result was thatmore than 6 , of the colony's most talented managers and entrepreneursare leaving each year, and many Hong Kong companies have been movingelsewhere. ("We are Chinese, if you please," 1989, p. Chinese politics ismulti-dimensional and from the first involved such dimensions as leadershipconflict, policy conflict, the evolution of political institutions,shifting relations between state and society, and ideological debate. Y. online edition, Danbury, CT: Grolier Electronic Publishing.Bears in the China shop. The Economist, pp. 9). 198). 117). A. 17) The reaction to the massacre in Tiananmen Square was immediate inHong Kong as the stock market fell by 22 percent. The CCP instituted changes in several areas of society. The issues being raised will have profound social, political, andeconomic consequences for the people of Hong Kong, for the West, and forthe People's Republic of China, and how these issues are resolved willdetermine how long the Communist regime in Red China will continue to ruleand whether the spirit of Tiananmen Square will rise once more to bringdemocracy to the people of China. Encyclopedia of China today. They seem intent on making themselves and theireconomy indispensable to the future of China so China will not dare to makeany major change even 5 years from now. At the same time, China has the choice of repudiating a political structure built under British auspices. Unlike in other Britishcolonies, Hong Kong's system of government has never been developed into aparliamentary democracy, largely out of deference to the wishes of China.Until 1985 the Legislative Council consisted entirely of civil servants andmembers appointed by the governor, and after 1985 some members wereselected by a form of indirect election. Westport, Conn.: Quorum Books.Hennessy, J. is that China will not do anything that will be contrary to her own economic advantage. The most important consideration in Hong Kong was tomaintain stability, and both Britain and China had made it clear that theywere more interested in stability than in change: Democracy without prosperity will spell Hong Kong's demise, but the territory will be able to survive, and survive well, if there is prosperity without democracy. China had promisedHong Kong self-rule and also pledged that Hong Kong would be allowed tokeep its free-enterprise economy and western-style political liberties forat least 5 years, but concern that this was not so deepened after thebrutal crackdown in Tiananmen Square. New border crossingpoints were being built for the articulated trucks crossing between HongKong and China - on the busiest day in 1988, some 12, trucks crossed atMan Kam To. 49). 4 3). Six-month visas are generally granted to intendingresidents with employment. The Chinese droppedthe issue for expedience but made it clear that the matter would bereopened. People in the West continue to be concernednot only about Hong Kong but about any democratic reforms in China herself. The future of Hong Kong: Toward 1997 and beyond. Some demonstrators inHong Kong marched on the unofficial Chinese embassy with banners carryingthe message "Freedom or death," a slogan that would gain in meaning as theweek progressed ("Message from Happy Valley," 19 9, p. The United States is thelargest foreign investor in the colony of Hong Kong (McGurn, 1992, p. In 1991, 18 out of 6 memberswere directly elected. was thus sympathetic to Chinese aspirations for a restoration ofits territorial integrity. The long termchange included modernization of the economy and a shift in the way theeconomy was controlled. In Hong Kong, theprospect of the change was greeted with resignation, but it was alsobelieved that much of the concern about the issue was premature: . About 98%of the population of 5,812, (199 est.) are Chinese, and most havetheir family origins in the Kwangtung province. (1992). However, as Rafferty notes, the Chinese crackdown has added a wholenew dimension to the economic prospects of Hong Kong. The first nine years of education are free, universal, andcompulsory, and almost all students complete two further years of secondaryeducation. Workers worried about what this meant for their peaceof mind and ability to work. From the standpoint of theChinese, return of Hong Kong to their control has been an important issueof nationalism and sovereignty. 1 ) The problems of Hong Kong have only been exacerbated by the events inTiananmen Square. The world was surprised that China, having so recently claimed its place in the community of nations, would resort to public bloodletting to resolve a crisis. it seems clear,though, that the changeover will take place and that there is no capabilityfor Hong Kong to escape from this fate. One-third of China'simports and exports still pass through the port. The regime faced certain fundamental needs in 1949 that helpeddetermine what order would be taken in making changes in Chinese society,and the most pressing need was for economic development and particularlyindustrialization. Since1949, the PRC has considered Hong Kong to be Chinese territory to berecovered, but there was no attempt to implement that goal until 1982. Hong Kong has worked for many years to attract investors and hascreated a very favorable environment for new investment and new businesses,including foreign-owned businesses. Police battled with the demonstrators, arrestingover 2 in the Square and then carrying out further arrests in subsequentweeks by searching factories for other participants in the demonstrations(Rodzinski, 1988, p. "China could at any time during the last how many years, have simply invaded Hong Kong, and we could not have resisted. Hong Kong called ageneral strike, and though the stock exchange did not close its doors outof fear of what the rest of the world would think (since the market'sreputation had been tarnished when it closed its doors for four days duringthe October 1987 crash), stockbrokers did join 2 , other financialcolleagues in a lunchtime demonstration. Hong Kong has been underBritish control as the result of three treaties with the Chinese from thelast century, but in the mid-198 s China concluded formal agreements withBritain for the return of Hong Kong in 1997. The Chinese leadership now also decided to defend the revolutionoutside the nation's borders as well, and this was in sharp contrast to theweak resistance the former regime had shown in previous eras to gun-boatdiplomacy and full-scale invasion alike. has strategic and economicinterests in what happens in Hong Kong, but this is a fact that has not yetfiltered down to the public.CONCLUSION The democratic-style government in Hong Kong has already inspiredcertain Chinese intellectuals to consider the value of transporting it as amodel to China (Binyan, 199 , p. New York: Pantheon books.Ching, F. The CCP believed that a strong state couldusher in strong economic development. Unhealthy tiesbetween private businessmen and Party and government officials wereeliminated by a Three-Anti Campaign (corruption, waste, and bureaucracy)and by the Five-Anti Campaign (bribery, theft of state property, taxevasion, theft of economic secrets, and embezzlement in carrying outgovernment contracts). The population alsocontains some 6 , Europeans and Americans, 57, Filipinos (mostlydomestic servants), and 3 , Indians and Pakistanis. (1989). English is the principal language ofgovernment in Hong Kong, but the normal medium of communication isCantonese. The chance for the Hong Kong Chinese to demonstrate their love of the mainland was irresistible. Boston: Little Brown.Kaplan, F. Now here were the students of Beijing choosing freedom too. It is this treaty which expires in 1997 (Chiu, 1987, p. Many of the upheavals inChinese society did affect Hong Kong if only by creating a fear that theinternal disorder in Red China would spill over into Hong Kong. In 1982 negotiationscommenced on Hong Kong's future, and in 1984 China and Britain signed ajoint declaration under which China would resume sovereignty over the wholecolony in 1997, promising to grant Hong Kong a high degree of autonomy andto allow capitalism and the inhabitants' life-style to continue undisturbedfor 5 years. "Throughout the darkest days in China of the Cultural Revolution, when there was slaughter going on, they stuck to treaties," said Mr. Waldegrave. 56) After Tiananmen Square, the question was raised as to how far theChinese would allow democracy to go before they stepped in and did the samething to Hong Kong they had done to their own people. Some U.S. firms as a regional center(McGurn, 1992, p. Franklin Roosevelt mediated with the Chinese,who announced that if Great Britain returned the New Territories to China,China would designate Hong Kong as a free port to preserve part of theinterests of British nationals there. Hong Kong and China: For better or for worse. In 1988 alone, Hong Kong firms invested $1.8 billion inGuangdong. The legacy of thedomination of the economic sphere by the former regime had done nothing toalleviate problems in the cities either. It was a complete change fromthe old regime. The government still refused: The best that Britain would promise wa that it would look at introducing a more democratic system of government in Hong Kong and press [Beijing] to life up to its promise to allow Hong Kong a separate way of life without interference from the Communist mainland. The Economist, p. The Hong Kong Government seeks to promote prosperity in Hong Kong, but is at the same time very careful not to offend China in any way; while China makes no promises, but acts so as to provide as much reassurance about Hong Kong's future as to be needed to secure the continuation of enterprise and investment in Hong Kong at a satisfactory rate (Youngson, 1984, pp. There is no compulsory union membership in HongKong, and there is minimal red tape for granting a registration forworkplaces. Washington, D.C.: Ethics & Public Policy Center.Message from Happy Valley. Red China, as noted, did not invade in 1949 asmany had feared, and after that date the people of China were busyredeveloping their own society and economy. More than 2 U.S.banks are located in Hong Kong, and each of America's top 1 banks has anoffice there. The Economist, p. There are three universities, two polytechnics, and severalother post- secondary institutions in Hong Kong. The colony has become the largest banking center in thePacific region, after Tokyo, and financial services now generate 19 percentof the gross domestic product (GDP), almost as much as manufacturing.Agriculture and fishing account for only .3 percent of the GDP. . 5)At the same time, the PRC made it clear that it would not tolerate HongKong becoming an independent state. There was also an effort at change in theurban regions, which had their own problems of recovery. Overseas companies setting up in Hong Kong generally eitherregister the overseas company with the local authorities or form a locallyincorporated subsidiary which can be legally distinct from the overseascompany. Sobin, J. (ed.) (1984). (1985). The CCP introduced a period ofmixed ownership in an effort to make the change as rapid and complete aspossible. In keeping with the belief that a strong government would mean astrong economy, the CCP fashioned new political institutions that helpedreshape all of Chinese society. Ever since, the Republic of China has not been in a positionto negotiate the Hong Kong question. This had suited Britainbecause it wanted to remain for years in the colony with as little fuss aspossible, and it suited the Chinese because they do not like uproar amongtheir subjects. The significance ofChina's land reform cannot be overstated. There are no minimal capitalization requirements for aprivate company. . Half-Crown colony. The Chinese werenot commenting on British efforts, ostensibly because they were leavingBritain in control until 1997, but also because China likes to keep its ownoptions open: If events move in a direction to its liking, China can retain whatever setup evolves. 9)POLITICAL REALITIES Given the response of the Red Chinese to the demonstrations and toconcerns in Hong Kong, many in Hong Kong started to rethink their positionand to push for Britain to reconsider its position. China, like Britain, will tolerate democracy in Hong Kong up to a point, But it wants to retain ultimate control. 14 -143). On the Chinese side, the hardliners were thinking they mightconsider the basic Law too liberal. However, there was also some optimism in Hong Kongbecause the demonstrations took place at all - this showed that there wereliberal-minded people in China: Nearly all the Chinese in Hong Kong are there because they chose freedom, or their parents or grandparents did. Hardliners evensuggested that the Chinese demonstrations were part of a Hong Kong-inspiredplot. Considering thepivotal role Hong Kong will play in the economic development of China (itis the largest outside investor in the mainland), the future of Americaninvestment in the PRC itself depends to a great degree on the ability ofHong Kong to persevere in the role it has played for 15 years. Also permissible are partnerships and sole proprietorships(Higgins, de Bedin, & Delbyck, 1988, p. These demonstrations were unprecedented and transformedHong Kong (p. The strategy undertaken was known as "self-reliance" asthe industrial development, which has been substantial since 1949, wasfinanced by China herself. In theearly 195 s the state created functional ministries coordinated by a StateAdministrative Council and by the consolidation of the Party bureaucracy.This "united front" was given substantive form in the Chinese People'sPolitical Consultative Conference, and this served as a quasi-legislativeand representative body. China's political system is a closed system, and history itselfis shaped by official doctrine and decision-making. 2 5). Beijing television covered the celebrations andpresented a closeup look at the leaders assembled there (Rodzinski, 1988,124-125). 35) One result was a demonstration in Hong Kong in support of thedemonstrations in Beijing, as noted, "for people had begun to realize thathow Hong Kong would look come 1997 depended on what kind of China there wasin 1997" (p. This was a major effort given that thecountry had over 5 million people in it. The retaliation brought down on the demonstrators was a shockaround the world, and it was a major shock within China as well. 1). . 5) Prior to Tiananmen Square, the average person in Hong Kong saw themost important thing to be making the agreement work in 1997. There were some in England who called for their government toreconsider, noting that it was morally wrong to turn over the people ofHong Kong to a regime that did not hesitate to run tanks over its ownpeople. . A Hong Kong businessman asked: "Ifthey treat their own people like this, how might they treat the people ofHong Kong?" (McGowan, 1992, p. S. In recent years many production processes havebeen relocated to China to take advantage of cheaper labor there, so thatHong Kong firms today employ more than twice as many people in China as inHong Kong. Some traditional institutions persisted in spite of Communistefforts to stamp them out, while other areas of the society were changedcompletely. The matter was now in the hands ofthe People's Republic of China under communist rule (Chiu, 1987, pp. (Youngson, 1984, pp. The market ralliedsomewhat after that, but it did not recover its earlier momentum and showedincreasing signs of weakness in subsequent months. 5-6). In practice, the PRC has toleratedHong Kong's having a limited international status similar, to a certainextent, to that of a state (Chiu, 1987, pp. Tourismis a big industry in Hong Kong, and over 5 million tourists visited in1989, contributing about 7 percent of the GDP (Academic AmericanEncyclopedia, online edition, 1993). Only time will tell for sure. 7 ).Red China and Hong Kong For the most part, the events in Red China were only news reports tothe people of Hong Kong. Thecrackdown brought about a rethinking of this issue: In the medium term Hong Kong may not be too badly affected provided that southern China's infrastructure is maintained and communications and transport keep flowing across the land border. It was soon apparent that the Chineseleadership was also rethinking its position, which only increased worriesin Hong Kong. It raised the question of whether the Chinese would try to reinin the freedoms enjoyed in Hong Kong. One Hong Kong politician says that now the Chinese are moreinterested in control than in prosperity. Even before those events, there were many worries amongthe up-and-coming Hong King Chinese middle classes, and the Hong KongManagement Association had started a scheme to try to lure back departingChinese executives. Tiananmen Square has held aspecial place in PRC history and in the history of dissident movementswithin the PRC. Hong Kong also provides an outlet for Chinese politicaldissidents and serves to reduce political tension within China as well asoffering indirect contacts, such as mail and trade, with Taiwan. (Rafferty, 1989, pp. In 1976, the Tiananmen movement started, an immense andspontaneous demonstration of protest by a supposedly docile people againstinjustice and oppression. The indiscriminate shooting of civilians was not what we expected of China. (1991). (Ching, 1985, p. S. Cambridge: Cambridge University Press.McGurn, W. (p. 33.Rafferty, K. New York: Harper & Row.Mackerras, C., & Yorke, A. Someeconomists had warned that the manufacturing industry in the colony wouldexperience a sharp and dangerous decline if trends continued. Indeed, the regime always tried to enlist the support of thevarious groups in Chinese society. Further progress before 1997 is constrained by theneed to agree with the Basic Law (Miners, 1993). firms are second among foreign insurers in Hong Kong.Hong Kong has a particular role for U.S. Immediately after Tiananmen began, thenegotiators on the Chinese side wanted to wait until the furor died downbefore starting this task up again. Analysts believed thatsome of the softness in the Hong Kong market was a function of economicrealities and changes in the international marketplace that had little todo with the political situation, but it was also evident that investorswere shying away from a commitment until they had a better idea of what thePRC would do in the coming years ("Bears in the China shop," 1992, p. Indeed, the manufacturing link between Hong Kong and China hadbecome so strong that many Hong Kong companies were thinking of closingtheir Hong Kong manufacturing entirely and switching to China. However, as noted, there has been considerable uncertainty in HongKong as to what the reunification effort will mean for the businesscommunity there. 55)Britain was working to prepare Hong Kong for representative government in avery conservative manner, in part out of consideration for the existingHong Kong government, which had a built-in distrust of democracy, and inpart out of fear of alarming China by moving too quickly. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.