One Country, Two SystemsHong Kong is a very special city. It has a very interesting history. In 1842, the island of Hong Kong was ceded by China to Great Britain. In 1860, the Kowloon Peninsula in Hong Kong was ceded to England. In 1898, the remainder of Hong Kong, the New Territories and 235 outlying islands were leased to England for 99 years. In the early 1980s, the British and Chinese governments began negotiating the future of Hong Kong as the lease expired on July 1, 1997. Chinese leader Deng XiaoPing introduced the principle of "One country, two systems". The "One Country, Two Systems" principle was intended to give Hong Kong citizens a promise that communism would not prevail over capitalism in Hong Kong. In this way, China would gain the trust of Hong Kong citizens that conditions would be the same when Britain returned sovereignty of Hong Kong to China. British and Chinese representatives signed the Anglo-Sino-Chinese Joint Declaration in 1984, authorizing the transition of sovereignty of Hong Kong at midnight on July 1, 1997. Hong Kong citizens were elated that Hong Kong was finally returning to its homeland. China wanted to show the world that the "One Country, Two" system would be unique and effective so that it could lure Macau and Taiwan back to China. In the early 1990s, the Basic Law was issued to make the practice of "One country, two systems" a legal procedure. In the Basic Law, it was provided that Hong Kong would become an inalienable part of the People's Republic of China (1). China would allow Hong Kong to practice a high degree of autonomy and enjoy independent executive, legislative and judicial power (2). The executive and legislative authorities of Hong Kong will be composed of permanent residents of Hong Kong (3). Hong Kong residents would have their rights and freedoms (4). The socialist system and politics would not be practiced in Hong Kong, and the previous capitalist system and way of life would remain unchanged for 50 years (5). Hong Kong would protect the right to private property in accordance with the law (6). Laws previously applied in Hong Kong, common law, equity rules, ordinances, subordinate legislation and customary laws, would be maintained. (8).