F.1 Westrn History

1)Hong Kong became a Special Administrative Region(SAR) of China because Hong Kong Island was cede to Great Britain by an unequalized treaty: Treaty of Nanking in 1842 and while Kwoloon Pennisula and New Territories was lend to Great Britain by another unequalized treaty: Treaty of Peking .
Actually Hong Kong should belong to Republic of China. Therefore according to the Joint Declaration Of China and Great Britain signed in 1984，Hong Kong should be given back to China.Therefore Hong Kong became a Special Administrative Region(SAR) of China in 1997.
2)Hong Kong follows a free market economy because Hong Kong is a city which used a free market economy when Great Britian ruled Hong Kong. Since the society of Hong Kong is practising capitalism, therefore Hong Kong is a society full of freedom in the international trade. The government of Hong Kong will not use the legislative method to interfer the economy of Hong Kong. As China promised the economic structure of Hong Kong will not change after 1997 in the Basic Law, Hong Kong will still follow a free market economy today.