Hong Kong–United Kingdom relations a deeply important role in the formation of the modern Hong Kong. Sovereignty of Hong Kong was ceded to the UK "in perpetuity" on 29 August 1842 through the Treaty of Nanking. The UK further expanded the territory of Hong Kong in 1860 by another cessation, plus a 99-year lease of the New Territories in 1898. The stability, security, and predictability of British law and government enabled Hong Kong to flourish as a centre for international trade. Localisation of teritary institutions, the Hong Kong government and the independent Judiciary in the run-up to the 1997 Handover of sovereignty, caused a
Handover of Hong Kong of the talks, the British government proposed an exchange of sovereignty for administration and the implementation of a British administration post-handover. The PRC government refused, contending that the notions of sovereignty and administration were inseparable, and although it recognised Macau as a "Chinese territory under Portuguese administration", this was only temporary. In fact, during informal exchanges between 1979 and 1981, the PRC had proposed a "Macau solution" in Hong Kong, under which it would remain under British administration at China's discretion. However, this had previously been rejected following the 1967 Leftist riots, with the then Governor, David Trench, claiming the