Demonstration for democracy in Hong Kong

"Business as Usual" as New Hong Kong Government Reveals Agenda

The Chinese President, Jiang Zemin, said he wanted the new Special Administrative Region (SAR) of Hong Kong to be "forever vigorous and dynamic".

"The overwhelming majority of the laws previously in force will be maintained," President Jiang said. "Hong Kong residents will enjoy their rights and freedoms in accordance with law and all will be equal before the law."

The BBC's Humphrey Hawksley discusses "the moral dilemma" facing Western leaders in their dealings with China

Jiang: Beijing wants Hong Kong "forever vigorous and dynamic"

He added that Hong Kong would retain its status as a free port and as a vital centre of international finance and trade.

One of ten Chinese warships sails into Hong Kong harbour

President Jiang was speaking to a crowd of thousands gathered at the building which housed Hong Kong's elected legislature. The legislature has now been replaced by a hand-picked assembly, under Chief Executive Tung Chee-Hwa.

Accompanied by Chinese Premier Li Peng, President Jiang later flew back to Beijing, where celebrations marking the end of 156 years of British rule over Hong Kong continued until the early hours of the morning.

New generation: the first baby born in Hong Kong under Chinese rule

But pro-democracy activists in Hong Kong remain uneasy about China's intentions. Martin Lee, a leading campaigner, said: "In the eyes of the world, we call on the Chinese government to allow free, fair and democratic elections immediately."

Chinese dissident Hang Dong Fan talks to the BBC about human rights concerns in Hong Kong

The Liberal Democrat leader, Paddy Ashdown, has returned to Britain after being in Hong Kong for the handover ceremonies. He says he's "nervously optimistic" about the future.

He said he found the event "strangely chilling". He told reporters: "Until then I was concerned, but not overly concerned. I think it was just the nature of the ceremony itself.

"I remain of the view that it is possible to be nervously optimistic about Hong Kong."

Previous stories on the Hong Kong handover
Hong Kong Reverts to China
China Celebrates End of "Shameful Era"
Chinese troops arrive in Hong Kong
Governor Patten Leaves Government House
Britain Wins Assurance Over Chinese Troops
Party-time in Hong Kong