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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 partiesrealized 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 partiesrealized a strong, modern China meant a commercially vibrant China.
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[[File:HK-1850.jpg|thumb|280px|the city in 1850]]
 
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>  
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[["File:HongKongMap.jpg|thumb|180px]]
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Modernization proceded 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.
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Modernization proceded 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.
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A representative leader was Sir Kai Ho Kai, (1859-1914), barrister, physician, reformist, revolutionary and essayist. His grandfather was a Protestant printer in Malacca (Malasia); 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>
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A representative leader was Sir Kai Ho Kai, (1859-1914), barrister, physician, reformist, revolutionary and essayist. His grandfather was a Protestant printer in Malacca (Malasia); 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> 
   
===Education and religion===
 
===Education and religion===
 
Schooling was not compulsory but the colonial government began annual cash grants in 1847 to schools for the Chinese; there was never any effort to impose English. In 1873, the annual grants were extended to voluntary schools operated by Christian missionaries. College of Medicine for the Chinese, opened in 1887 with [[Sun Yat Sen]] as one of its first two students; it became the University of Hong Kong in 1911 and built arts, engineering and medical faculties. However, throughout the 20th century higher education opportunities were limited.
 
Schooling was not compulsory but the colonial government began annual cash grants in 1847 to schools for the Chinese; there was never any effort to impose English. In 1873, the annual grants were extended to voluntary schools operated by Christian missionaries. College of Medicine for the Chinese, opened in 1887 with [[Sun Yat Sen]] as one of its first two students; it became the University of Hong Kong in 1911 and built arts, engineering and medical faculties. However, throughout the 20th century higher education opportunities were limited.
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