Control of Hong Kong Island gave the British Empire better access to Chinese trade. Eager for even more, it renewed fighting with China in 1856 and sparked the Second Opium War (which the French Empire also joined). When the war ended in 1860, the Convention of Beijing forced China to cede the Kowloon Peninsula south of a dividing line known as Boundary Street.
On July 1, 1898, the British Empire negotiated the Second Convention of Peking with China, this time leasing the New Territories between Boundary Street and Shenzhen River, the modern dividing line between mainland China and Hong Kong. The lease was set to expire in 99 years, meaning that China expected Britain to hand the region back over on July 1, 1997.
During World War II, the Japanese Empire briefly interrupted British control when it occupied Hong Kong (at the time, Japan was also occupying most of Southeast Asia). After the war, dozens of countries in Asia, Africa and the Americas won independence from Japanese and European control. But Britain continued to rule over Hong Kong, one of its last major colonial territories.
Deadline for the New Territories Handover Approaches
In 1982, with the expiration date for British control of the New Territories looming, British and Chinese leaders met with each other to negotiate the transition.
Because the 1898 lease didn’t apply to Hong Kong Island and the Kowloon Peninsula south of Boundary Street, Britain could have tried to negotiate keeping those regions. However, Prime Minister Margaret Thatcher ultimately didn’t think that those two regions would be able to survive on their own, says Steve Tsang, director of the University of London’s SOAS China Institute.
After all, Hong Kong’s airport—Shek Kong Airfield—was in the section above Boundary Street that the British had to return.