From a little-known fishing community at the periphery of China, Hong Kong developed into one of the world's most spectacular and cosmopolitan cities after a century and a half of British imperial rule. The history of Hong Kong, from its occupation by the British in 1841 to its return to Chinese sovereignty in 1997, is a fascinating story of East meeting West. This book addresses the changing relations between the local Chinese and expatriate communities in 156 years of British rule, and the emergence of a local identity. It explains the importance of China as a factor in its development and the origins of the so-called "1997 problems," thus analyzing the underlying reasons for the rise of a liberal society committed to the rule of law without democracy.