Hong Kong had been a colony of the British Empiresince 1842 after the First Opium War and its territory was expanded on two occasions; first in 1860 with the addition of Kowloon Peninsula and Stonecutters Island, and again in 1898 when Britain obtained a 99-year lease for the New Territories. The date of the handover in 1997 marked the end of this lease.
The Chinese government declared in the treaty its basic policies for governing Hong Kong after the transfer. A special administrative region would be established in the territory that would be self-governing with a high degree of autonomy, except in foreign affairs and defence.