ABSTRACT
Hong Kong has occupied a unique position in the international economy since its initial occupation by British traders in 1842. As a haven for Western traders engaged in commerce with China, the colony of Hong Kong developed into the most important entrepot in East Asia. By the end of the nineteenth century, the island’s reputation as an outpost of colonial influence and free market opportunities attracted thousands of European and Chinese merchants to the colony.1 In the first half of the twentieth century, however, these merchants began to feel the impact that international politics would have on the colony over the next century. The SinoJapanese War, the Japanese occupation of China and then of Hong Kong from 1941 halted the colony’s development for close to a decade. After the surrender of the Japanese in August 1945, Hong Kong was poised to resume its traditional role as the hub of the Asian economy. However, the economic environment into which Asia emerged in 1945 was changed irrevocably, and the subsequent shifts in the global economy propelled Hong Kong towards a new role in East Asia.
