Changes

===Business===

===Business===

In the 19th century the British colony was chiefly a naval base and as an entrepôt for trade with the mainland.  An international busineess community grew up; Warren Delano, Jr., grandfather of President [[Franklin Delano Roosevelt]], worked in Hong Kong in the 1860s as a partner in the American trading firm of Russell and Company.  Jardine Matheson, founded in 1832, was a British partnership that did marketing for correspondent merchants in Britain, India, and parts of south-east Asia. It became active in finance, insurance, and shipping, but its most profitable commodity was opium, which was sold, illegally, in Canton and along the coast of China. In 1843 it moved its headquarters to Hong Kong, signalling the new base for British merchants, who dominated the international trade of south China. They sent teas and silks to Europe, and imported coal, machinery, metals, wines, and liquors. In 2007 Jardine Matheson had revenues of US$32 billion, and is the largest employer in HKSAR after the government.<ref>See [http://www.jardines.com/profile/history.html Jardine's History]</ref>

In the 19th century the British colony was chiefly a naval base and as an entrepôt for trade with the mainland.  An international business community grew up; Warren Delano, Jr., grandfather of President [[Franklin Delano Roosevelt]], worked in Hong Kong in the 1860s as a partner in the American trading firm of Russell and Company.  Jardine Matheson, founded in 1832, was a British partnership that did marketing for correspondent merchants in Britain, India, and parts of south-east Asia. It became active in finance, insurance, and shipping, but its most profitable commodity was opium, which was sold, illegally, in Canton and along the coast of China. In 1843 it moved its headquarters to Hong Kong, signalling the new base for British merchants, who dominated the international trade of south China. They sent teas and silks to Europe, and imported coal, machinery, metals, wines, and liquors. In 2007 Jardine Matheson had revenues of US$32 billion, and is the largest employer in HKSAR after the government.<ref>See [http://www.jardines.com/profile/history.html Jardine's History]</ref>

[[File:HK-1850.jpg|thumb|left|280px|The city in 1850.]]

[[File:HK-1850.jpg|thumb|left|280px|The city in 1850.]]

Shortages of arable land, fresh water, forest and mineral resources, and skilled labor appeared to be insuperable barriers to the development of industry. However, Chinese businessmen by the 1880s were creating a distinct cultural-historical role for the colony. They contributed to China's nation-building effort by providing financing and imports China could not secure on its own. Their success made Hong Kong a valued member of the British Empire.  By 1900, the colonial government appreciated the Chinese businessmen as more than profit-bound sojourners, but as allies in the struggle for order and stability, not just in Hong Kong and in south China, but in the British empire in Asia. Nationalism does not inevitably pit colonized against colonizers, for Chinese nationalism did not drive the Chinese merchants and intellectuals into opposition; the ideal of a powerful, modern China united them with the British, for both parties realized a strong, modern China meant a commercially vibrant China.

Shortages of arable land, fresh water, forest and mineral resources, and skilled labor appeared to be insuperable barriers to the development of industry. However, Chinese businessmen by the 1880s were creating a distinct cultural-historical role for the colony. They contributed to China's nation-building effort by providing financing and imports China could not secure on its own. Their success made Hong Kong a valued member of the British Empire.  By 1900, the colonial government appreciated the Chinese businessmen as more than profit-bound sojourners, but as allies in the struggle for order and stability, not just in Hong Kong and in south China, but in the British empire in Asia. Nationalism does not inevitably pit colonized against colonizers, for Chinese nationalism did not drive the Chinese merchants and intellectuals into opposition; the ideal of a powerful, modern China united them with the British, for both parties realized a strong, modern China meant a commercially vibrant China.

The Chinese nationalists played a major role in service to the Qing dynasty and the succeeding Republican governments, in leading the 1911 revolution and becoming a strategic a haven for Chinese refugees. Hong Kong's philanthropic and relief works, and the commercial and industrial activities of the entrepreneurs were role models for South China.  The Chinese business community in Hong Kong, resembled the British business communities there and in Shanghai, which was larger and commercially more important before 1948. Both British and Chinese businessmen were dedicated to opening markets in China, to the point at which Hong Kong Chinese were in a sense both colonized and colonizers. Both groups benefited from their connections in the British Empire, and both were dependent on its power. Members of both societies saw themselves as permanent residents rather than as expatriates or sojourners, but they also continued to send money home to support philanthropic causes and, when necessary, to assist national war efforts. Both British and Chinese could have a number of identities: British or Chinese, imperial, national, and local. Both communities based their local identities on self-images of industriousness, entrepreneurship, and public spirit.  London refused demands by British residents for self-government, arguing that saying the 98% Chinese majority would be subject to the control of a small European minority.<ref>John Carroll, "Colonialism, Nationalism, and Difference: Reassessing the Role of Hong Kong in Modern Chinese History." ''Chinese Historical Review'' 2006 13(1): 92-104. Issn: 1547-402x</ref>  

The Chinese nationalists played a major role in service to the Qing dynasty and the succeeding Republican governments, in leading the 1911 revolution and becoming a strategic a haven for Chinese refugees. Hong Kong's philanthropic and relief works, and the commercial and industrial activities of the entrepreneurs were role models for South China.  The Chinese business community in Hong Kong, resembled the British business communities there and in Shanghai, which was larger and commercially more important before 1948. Both British and Chinese businessmen were dedicated to opening markets in China, to the point at which Hong Kong Chinese were in a sense both colonized and colonizers. Both groups benefited from their connections in the British Empire, and both were dependent on its power. Members of both societies saw themselves as permanent residents rather than as expatriates or sojourners, but they also continued to send money home to support philanthropic causes and, when necessary, to assist national war efforts. Both British and Chinese could have a number of identities: British or Chinese, imperial, national, and local. Both communities based their local identities on self-images of industriousness, entrepreneurship, and public spirit.  London refused demands by British residents for self-government, arguing that saying the 98% Chinese majority would be subject to the control of a small European minority.<ref>John Carroll, "Colonialism, Nationalism, and Difference: Reassessing the Role of Hong Kong in Modern Chinese History." ''Chinese Historical Review'' 2006 13(1): 92-104. Issn: 1547-402x</ref>  

[[File:HongKongMap.jpg|right|180px]]

[[File:HongKongMap.jpg|right|180px]]

Modernization proceeded rapidly, with the Hong Kong and China Gas Company starting in 1861, the Peak Tram in 1885, the Hongkong Electric Company in 1889, China Light and Power in 1903, the electric tramways in 1904 and the Kowloon-Canton Railway, in 1910. Successive reclamations began in 1851 — notably one completed in 1904 in Central District which produced Chater Road, Connaught Road and Des Voeux Road; and another in Wan Chai between 1921 and 1929.

Modernization proceeded rapidly, with the Hong Kong and China Gas Company starting in 1861, the Peak Tram in 1885, the Hong Kong Electric Company in 1889, China Light and Power in 1903, the electric tramways in 1904 and the Kowloon-Canton Railway, in 1910. Successive reclamations began in 1851 — notably one completed in 1904 in Central District which produced Chater Road, Connaught Road and Des Voeux Road; and another in Wan Chai between 1921 and 1929.

A representative leader was Sir Kai Ho Kai, (1859-1914), barrister, physician, reformist, revolutionary and essayist. His grandfather was a Protestant printer in Malacca (Malaysia); his father was educated at the Anglo-Chinese College in Malacca and became a Protestant minister in Hong Kong as well as a rich real estate entrepreneur.  Ho Kai  was one of the first Chinese physicians to be professionally trained in Britain (at Aberdeen University), becoming a central figure in the history of Western medicine in China. His public service on Hong Kong's appointed Legislative Council from 1890 to 1914, his role in helping to found the Tung Wah Hospital, Alice Memorial Hospital, the Hong Kong College of Medicine and the Po Leung Kuk orphanage; he wrote numerous essays on governmental reform.<ref>G. H. Choa, ''The Life and Times of Sir Kai Ho Kai: A Prominent Figure in Nineteenth-Century Hong Kong.'' (2nd ed. 2000)</ref>

A representative leader was Sir Kai Ho Kai, (1859-1914), barrister, physician, reformist, revolutionary and essayist. His grandfather was a Protestant printer in Malacca (Malaysia); his father was educated at the Anglo-Chinese College in Malacca and became a Protestant minister in Hong Kong as well as a rich real estate entrepreneur.  Ho Kai  was one of the first Chinese physicians to be professionally trained in Britain (at Aberdeen University), becoming a central figure in the history of Western medicine in China. His public service on Hong Kong's appointed Legislative Council from 1890 to 1914, his role in helping to found the Tung Wah Hospital, Alice Memorial Hospital, the Hong Kong College of Medicine and the Po Leung Kuk orphanage; he wrote numerous essays on governmental reform.<ref>G. H. Choa, ''The Life and Times of Sir Kai Ho Kai: A Prominent Figure in Nineteenth-Century Hong Kong.'' (2nd ed. 2000)</ref>

Open currency markets and a free trade policy in Hong Kong after World War II gave it great economic advantages over Shanghai, whose government-controlled import-export trade could not compete with the British colony. In the late 1940s thousands of businessmen and professionals from Shanghai and other cities fled to Hong Kong top escape the imminent takeover of China by the Communists.  

Open currency markets and a free trade policy in Hong Kong after World War II gave it great economic advantages over Shanghai, whose government-controlled import-export trade could not compete with the British colony. In the late 1940s thousands of businessmen and professionals from Shanghai and other cities fled to Hong Kong top escape the imminent takeover of China by the Communists.  

Despite a low birth rate, Hong Kong's population grew rapidly after 1945, as it became a base for entrepeneurs and a haven for refugees from poverty, war and Communism in China. The population tripled from 600,000 in 1945 to 1.8 million in 1948, then grew to 4 million in 1970 and 5.6 million in 1997. Steady growth continues, reaching 6.9 million in 2006.  

Despite a low birth rate, Hong Kong's population grew rapidly after 1945, as it became a base for entrepreneurs and a haven for refugees from poverty, war and Communism in China. The population tripled from 600,000 in 1945 to 1.8 million in 1948, then grew to 4 million in 1970 and 5.6 million in 1997. Steady growth continues, reaching 6.9 million in 2006.  

[[File:TVB newsroom Hong Kong.jpg|left|TVB newsroom, Hong Kong.]]

[[File:TVB newsroom Hong Kong.jpg|left|TVB newsroom, Hong Kong.]]

The colony's strong high school system produced some of the professionals and skilled workers who contributed to rapid economic development after 1945, but they were outnumbered by new arrivals from China. Hong Kong's open and competitive employment system offered an important channel for upward social mobility, which tended to forestall a growth in class consciousness. Graduates joined an English-speaking elite and took pride in its acquaintance with the British culture. This elite was then incorporated by the British Establishment. This integration reduced potential friction between the colonial government and the local elite, who displayed far less antagonism or demands for independence than elites in other colonies.  Demands for political participation emerged in the 1970s, as the colonial government vastly expanded its social service commitments. Its policy of "administrative absorption" encompassed more elites from all social strata. Its image was also improved by attempts to be a "government by consultation," while the threat of a takeover by Communist China undercut demands for autonomy.  Economic development consistently raised the people's living standards and lowered their demand for political participation. Hong Kong elites were proud of not being affected by the "British disease," the symptoms of which included too much social welfare, militant trade unionism, frequent labour disputes, and a decline in economic competitiveness, as affected Britain itself in the 1970s. Radical ideologies were unattractive to the community and the Maoist factions gained little support.  After 1984 both Britain and China promised more democracy, but as of 2008 there still is little of it.<ref>Joseph Y.S. Cheng, "Elections and Political Parties in Hong Kong's Political Development", ''Journal of Contemporary Asia,'' 2001, 31#3 346-374</ref>

The colony's strong high school system produced some of the professionals and skilled workers who contributed to rapid economic development after 1945, but they were outnumbered by new arrivals from China. Hong Kong's open and competitive employment system offered an important channel for upward social mobility, which tended to forestall a growth in class consciousness. Graduates joined an English-speaking elite and took pride in its acquaintance with the British culture. This elite was then incorporated by the British Establishment. This integration reduced potential friction between the colonial government and the local elite, who displayed far less antagonism or demands for independence than elites in other colonies.  Demands for political participation emerged in the 1970s, as the colonial government vastly expanded its social service commitments. Its policy of "administrative absorption" encompassed more elites from all social strata. Its image was also improved by attempts to be a "government by consultation," while the threat of a takeover by Communist China undercut demands for autonomy.  Economic development consistently raised the people's living standards and lowered their demand for political participation. Hong Kong elites were proud of not being affected by the "British disease," the symptoms of which included too much social welfare, militant trade unionism, frequent labour disputes, and a decline in economic competitiveness, as affected Britain itself in the 1970s. Radical ideologies were unattractive to the community and the Maoist factions gained little support.  After 1984 both Britain and China promised more democracy, but as of 2008 there still is little of it.<ref>Joseph Y.S. Cheng, "Elections and Political Parties in Hong Kong's Political Development", ''Journal of Contemporary Asia,'' 2001, 31#3 346-374</ref>

===Economic boom===

===Economic boom===

[[File:Collage Hong Kong.jpg|right|120px]]

[[File:Collage Hong Kong.jpg|right|120px]]

In the 1950s, Hong Kong viewed Guangdong on the mainland as its economic past: an underdeveloped hinterland of cottage industries and peasant agriculture. Guangdong, meanwhile, looked on Hong Kong as its political past: a territory oppressed by colonialism. That is, Hong Kong leaders saw Guangdong as socialist, planned, unfree, and poor. Meanwhile the Commuist leaders in Guangdong saw Hong Kong as colonial, exploitative,class stratified, and dehumanizing.<ref>Seth Harter, "'Time Is Moving Forward, but We Are Moving Faster': Racing towards Modernity in Hong Kong and Guangdong, 1945-1962."  (2006).</ref>

In the 1950s, Hong Kong viewed Guangdong on the mainland as its economic past: an underdeveloped hinterland of cottage industries and peasant agriculture. Guangdong, meanwhile, looked on Hong Kong as its political past: a territory oppressed by colonialism. That is, Hong Kong leaders saw Guangdong as socialist, planned, unfree, and poor. Meanwhile, the Commuist leaders in Guangdong saw Hong Kong as colonial, exploitative,class stratified, and dehumanizing.<ref>Seth Harter, "'Time Is Moving Forward, but We Are Moving Faster': Racing towards Modernity in Hong Kong and Guangdong, 1945-1962."  (2006).</ref>

The colony experienced some of the highest economic growth rates in world history during the last half of the 20th century. In the 1960s its average annual rate of growth was 13.2%, setting a world record. New factories opened, especially textiles and plastics. A major construction boom continued almost non-stop. In the 1960s the port became as a major center for world trade, exceeding all of China by 30%.  It became a major international financial center. Low taxation, a strong currency, and a free currency exchange attracted international banks and foreign investment, although uncertainty regarding the 1997 takeover sent some investors to Canada.  In the 1970s the growth rate slowed to a very high 8% annually. Per capita income soared, despite the fast growing population, and was the third highest in Asia by 1980, albeit less than half that of Japan.   

The colony experienced some of the highest economic growth rates in world history during the last half of the 20th century. In the 1960s its average annual rate of growth was 13.2%, setting a world record. New factories opened, especially textiles and plastics. A major construction boom continued almost non-stop. In the 1960s the port became as a major center for world trade, exceeding all of China by 30%.  It became a major international financial center. Low taxation, a strong currency, and a free currency exchange attracted international banks and foreign investment, although uncertainty regarding the 1997 takeover sent some investors to Canada.  In the 1970s the growth rate slowed to a very high 8% annually. Per capita income soared, despite the fast growing population, and was the third highest in Asia by 1980, albeit less than half that of Japan.   

When Britain turned Hong Kong over to China in 1997 it was the most modern colonial metropolis in the world, where robust entrepreneurship flourished under a British legal system providing a high degree of civil liberties for its citizens, but which had never set up a democratic system.  Between 1960 and 1982, Hong Kong showed the staggering average growth rate of 7.0% per year, then held at 6.7% annually to 1992. In 1995, Hong Kong's GDP per person (in parity purchasing power) was the third highest in the world.  

When Britain turned Hong Kong over to China in 1997 it was the most modern colonial metropolis in the world, where robust entrepreneurship flourished under a British legal system providing a high degree of civil liberties for its citizens, but which had never set up a democratic system.  Between 1960 and 1982, Hong Kong showed the staggering average growth rate of 7.0% per year, then held at 6.7% annually to 1992. In 1995, Hong Kong's GDP per person (in parity purchasing power) was the third highest in the world.  

In 1997, at the end of the 99 year lease, the whole of the Hong Kong territory was returned to China. A "one country, two systems" model for 50 years was promised by China's leader [[Deng Xiaoping]], and the formula was accepted by Britain. Beijing selected the Basic Law Drafting Committee in 1985, making it clear it placed top priority on the stability and prosperity of the territory and that radical political reforms would be unlikely. Of the 59 members there were 23 members from Hong Kong, most of them prominent businessmen and leading professionals. The interests of the Establishment in Hong Kong apparently were assured, as the Chinese authorities were keen to retain Hong Kong's attractiveness to investors. The Basic Law Drafting Committee favoured an "executive-led" system of government for the future HKSAR with power concentrated in the hands of the Chief Executive, rather than the weak Legislative Council.

In 1997, at the end of the 99-year lease, the whole of the Hong Kong territory was returned to China. A "one country, two systems" model for 50 years was promised by China's leader [[Deng Xiaoping]], and the formula was accepted by Britain. Beijing selected the Basic Law Drafting Committee in 1985, making it clear it placed top priority on the stability and prosperity of the territory and that radical political reforms would be unlikely. Of the 59 members there were 23 members from Hong Kong, most of them prominent businessmen and leading professionals. The interests of the Establishment in Hong Kong apparently were assured, as the Chinese authorities were keen to retain Hong Kong's attractiveness to investors. The Basic Law Drafting Committee favoured an "executive-led" system of government for the future HKSAR with power concentrated in the hands of the Chief Executive, rather than the weak Legislative Council.

[[File:HK Bank of China Tower 2008.jpg|thumb|left|HK Bank of China Tower, 2008.]]

[[File:HK Bank of China Tower 2008.jpg|thumb|left|HK Bank of China Tower, 2008.]]