Hong Kong inhabited by fishermen & farmers in the old days. In around 1685, trade between China & Britain had commenced, British started to import Chinese tea & porcelain. In 1750, British begin to import opium into China to redress the trade imbalance. Suffering The First & Second Opium War, Britain takes Hong Kong Island in 1841 & Kowloon Peninsula in 1856-1860. In 1898, China agreed to lease New Territories to Britain for a period of 99 years. In 1941-1945 during World War II, The Japanese occupy Hong Kong. From late 1970s, British & Chinese Governments started meeting to decide Hong Kong’s future. From 1st July, 1997 Hong Kong is a Special Administrative Region of the People's Republic of China. Following British rule from 1842 to 1997, China assumed sovereignty under the 'one country, two systems' principle. The Hong Kong Special Administrative Region's constitutional document, the Basic Law, ensures that the current political situation will remain in effect for 50 years.