June 30 to July 1, 1997: A merger of a different kind took place in Asia as the British rule of the island of Hong Kong ended after 156 years when British governor Chris Patten boarded the royal yacht and left the island. Consequently, China regained control of one of its largest cities. Under a 1984 agreement between the British and Chinese, Hong Kong is given a wide degree of freedom both economically and legally as China recognizes the city-state as a special administrative region, which will continue until 2047. Under the agreement, Hong Kong retains its own legal system, currency, customs policy, and immigration laws. Upon the handover, China assumed responsibility for the defense of the island. Policing still remains under the city-state's own jurisdiction as the local garrison is only responsible for defense. However, the Chinese have exerted some control most recently in the form of a 2003 anti-subversion law that would have limited free speech and religion. The proposed law drew heavy street protests leading to a number of government officials including the city-state's CEO stepping down. Interestingly, rather than bolstering China's economy, the handover led to an economic downturn in Asia following the collapse of a real estate bubble on the island. Of course, both Hong Kong and China have rebounded from the malaise.—
Matthew Wurtzel
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