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THE HANDOVER

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Hong Kong entered its new era at the stroke of midnight, launching a historic experiment with the strongest pledge yet of non-interference from President Jiang Zemin.

As June 30 moved into July 1, the flags of Britain and Hong Kong were lowered, and those of China and the Special Administrative Region raised in the Convention and Exhibition Centre.

The return to China after 156 years of colonial rule came at the end of a day packed with emotion. It was followed by swearing-in ceremonies for the Chief Executive, his senior officials, the Judiciary and the provisional legislature during the early hours.

Mr Jiang, the first head of state of China to visit Hong Kong, flew in during the afternoon, shortly after Governor Chris Patten bade farewell to Government House.

In a statement which appears on the front of our second section today, Mr Jiang stresses that central government departments 'will not and should not be allowed to intervene in matters that ought to be handled by the Hong Kong SAR . . . as called for by the Basic Law. This must be achieved and it will be achieved'.

Noting that the Basic Law protects 'in full' rights and freedoms, including freedom of speech, of the press, of association, assembly and procession, he adds: 'Nobody and no organisation is allowed to engage in activities contrary to the Basic Law and detrimental to Hong Kong's prosperity and stability and to national security.' In his handover speech, Mr Jiang said the SAR would gradually develop a democratic system that suited Hong Kong reality. 'I am confident . . . Hong Kong compatriots will be able to manage Hong Kong well,' he said.

But if July 1 was a day for celebration for China and the new administration, the preceding hours were a time of equally deep sentiment for the outgoing power, and its principal representative here since 1992.

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