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. From the standpoint of the Chinese, return of Hong Kong to their control has been an important issue of nationalism and sovereignty.
However, as noted, there has been considerable uncertainty in Hong Kong as to what the reunification effort will mean for the business community there. Hong Kong has become a prosperous region and will indeed be an asset to the People's Republic of China if it is allowed to continue in its capitalist tradition. Concerns in Hong Kong have been exacerbated by the events that took place in Tiananmen Square in Beijing in 1989 when thousands of demonstrators seeking more democracy in China were attacked routed, and many killed by Chinese troops acting under the direction of the leadership, which wanted to protect the existing Communist system. Such a violent attack against a demonstration in favor of democracy raised the level of concern in Hong Kong about Red China's intention to honor the spirit of the agreement with Britain once Hong Kong was returned to Chinese control. It raised the question of whether the Chinese would try to rein in the freedoms enjoyed in Hong Kong. The business community feared what this would mean for their abilit...