The vexing question of British jurisdiction over the leased areas of the New Territories began to loom large as the lease approached its 1997 expiration date. The Chinese-British joint declaration on the future of Hong Kong was, however, agreed in 1984. There followed further difficult negotiations between Hong Kong and China on the details of future Chinese rule and the territory's special status. Nonetheless, the basic structure of law for Hong Kong was ratified by its National People's Congress in April 1990.

On the day of the handover, July 1, 1997, a token detachment of Chinese troops rolled into Hong Kong. But so far, the Chinese have recognized the unique and mutual benefit that results from the territory's current status, and the mutual benefits accruing from the agreed "one country, two systems" formula. Hong Kong continues to prosper, albeit timorously, 10 years after the historic handover.

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