British Prime Minister Margaret Thatcher proposed an exchange of British sovereignty in the region for administrative authority. However, in June 1982, communist Chairman Deng Xiaoping rejected Ms. Thatcher’s idea.
Declaring Beijing’s intention to govern Hong Kong under a “one country, two systems,” Mr. Deng said the island would be allowed some degree of autonomy, but there would be no room for further British involvement.
The 1984 Sino-British joint declaration, ratified in front of the United Nations in 1985, was Britain’s official concession of the territory. The two governments also agreed that after the transition in 1997, Hong Kong, which was poised to become the first Special Administrative Region of China, would be ruled by a limited constitution known as the Basic Law for at least 50 years after the transition.
A wave of emigration from Hong Kong followed the announcement.