LONDON: When the British flag was lowered on Hong Kong for the last time, the cry outside government circles in London spoke of betrayal, anguish over democracy and a nostalgic sense of loss of empire.

Five years on, and the fifth anniversary of the rain-soaked handover rates barely a mention, a sign that Britain, and Hong Kong, have moved on.

Seen from London, the official view is that the notion of “one country, two systems,” under which Hong Kong has special status within China, is working.

The view outside government is that, while the picture may not be quite as rosy as it could be, it could have been a whole lot worse.

“The worst fears of all sides have not been realized,” said Michael Yahuda, professor at the Asia Research Centre of the London School of Economics.

“The Chinese feared that the British would leave all sorts of difficulties and trouble for them, but that has not been the case,” he said.

“On the British side, the fear was that the Chinese would interfere. While they have not kept out altogether, they have not basically affected the system in Hong Kong.

London says it takes its commitments to Hong Kong seriously and is closely monitoring human rights and democracy.

The deal returning Hong Kong to China was that it would be able to maintain its capitalist lifestyle and considerable autonomy for 50 years.

According to the latest report Britain has produced every six months since 1997, that concept is “an everyday reality.”

It concluded that the rule of law and judicial independence were respected, essential rights and freedoms protected and challenges freely debated.

But there were caveats, including treatment of the Falungong sect which is banned in mainland China but not Hong Kong.

Also, the report stressed a need to move “as quickly as possible” towards a directly elected legislature and chief executive.

Recent remarks by Chinese Vice Premier Qian Qichen, who is responsible for Hong Kong affairs, that the current system should be kept intact, are frowned upon here.

“This is not our view,” a Foreign Office spokeswoman said. “The pace of democratic reform should come sooner rather than later.”

Britain has a huge economic interest in Hong Kong’s well-being.

It is the leading foreign investor in the territory, with total investment estimated at 17 billion pounds ($26 billion). Last year, British exports to Hong Kong totalled 2.7 billion pounds, and a third of its exports to mainland China passed through it.

In return, some 80 per cent of Hong Kong investment in Europe is in Britain, which imported 6 billion pounds worth of goods from there last year.

Moreover, there are some 3.6 million British passport-holders in Hong Kong, although the vast majority have a form of nationality which permits visa-free visits to Britain but no right of abode.

A wave of British, Chinese and Hong Kong ministers, officials and business leaders, including Chinese President Jiang Zemin in 1999, have paid reciprocal visits.

“Our bilateral links are good,” the Foreign Office spokeswoman said.

He said Hong Kong’s economy had lost its “buzz” and had not benefited from the growth rate in mainland China.

Secondly, there was a sense of China’s growing hold over Hong Kong’s system of government, which he said was barely accountable to anyone but Beijing.—AFP