ABSTRACT
As of the beginning of 1989, Hong Kong's economic condition still appears rosy on the surface. The economic relations between Hong Kong and China have been true for many years, and the facts are well known to both sides. The British desire to reach a long-term settlement with the Beijing authorities on matters related to Hong Kong can be readily explained. Historically, the island of Hong Kong was ceded to Great Britain in 1842 at the end of the Opium War, but the New Territories were acquired by the British under a ninety-nine-year lease expiring in mid-1997. In a historical context, the roles currently played by the free-market economy of Hong Kong, both regionally and on the global scene, evolved in several stages. In recent times, Hong Kong has expanded its social welfare benefits to the public in view of its burgeoning population.
