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Rachel Clarke

The first day of the Special Administrative Region dawned with more changes confirming Hong Kong's new status.

 More than 4,000 PLA troops crossed the border in trucks and armoured personnel carriers. Others arrived in patrol ships and helicopters.

 SAR and national logos appeared above the Central Government Offices, the five gold stars flew above Government House and new Chief Executive Tung Chee-hwa was chauffeured in a car with the bauhinia symbol replacing its number plate.

 Thousands turned out to welcome the dawn arrival of the PLA convoys coming through Lok Ma Chau, Man Kam To and Shataukok.

 A planned simultaneous arrival of air, sea and land forces had to be abandoned because of the dismal weather. Four patrol ships crossed into Hong Kong waters at exactly 6am, but only later did the seven helicopters fly to their base at Sek Kong.

 On both ships and trucks, the troops stood ramrod straight, looking ahead and motionless or waving in unison but without seeming to see the crowds cheering 'welcome' in Putonghua.

 Mr Tung was more exuberant when he offered his policy blueprint just hours after being sworn in as leader of what he described as 'the freest and most vibrant economy in the world'.

 He welcomed Hong Kong's new start but warned: 'Beneath the surface of prosperity, there are insidious threats which are taxing our courage and determination. Now is the time for us to apply our intelligence and work for a better future.'  Key policy fields included education, where new teachers would be required to be graduates and whole-day schooling would be introduced at the primary level; housing, where land reclamation would be speeded up to help meet targets of 85,000 new flats a year and 70 per cent private home ownership within 10 years; and the elderly, for whom a commission would be established to formulate policies and co-ordinate services while steps would be taken to establish a mandatory provident fund.

 Business reaction to the property pledges was mixed, with some analysts saying they could break the 'cartel-like atmosphere' of the development sector while others said that, with the anti-speculation measures still to be detailed, it was too soon to tell.

 In Beijing, President Jiang Zemin opened a two-hour extravaganza to celebrate the return of Hong Kong, saying the people here had 'waged a heroic struggle against foreign oppression'. He said the Chinese people had 'tragically but heroically traversed a long and rugged road, a road full of humiliation and hardship'. Mr Jiang also promised reunification with Taiwan.

 Back in Hong Kong about 5,000 people marched to demand democracy throughout China. The demonstration was organised by the Hong Kong Alliance in Support of the Patriotic Democratic Movement in China, whose chairman, Szeto Wah, praised the turnout on the first day of the SAR.

 'It showed that people firmly support the alliance even though they face an uncertain future,' he said.

 An attempt to set a world record for a karaoke sing-a-long flopped when few people joined in. More than 800,000 people flocked to Tsim Sha Tsui and another 100,000 watched the harbour show from Hong Kong - but did not heed the organisers' plea to sing.

 'I know people are supposed to be crazy about karaoke but I think there is a limit,' said office clerk Jennifer Wong Kwok-mei, 25.

WHAT THEY SAID 'We value plurality, but discourage open confrontation; we strive for liberty but not at the expense of the rule of law; we respect minority views but also shoulder collective responsibility. I hope these values will provide the foundation for unity in our society.' Chief Executive Tung Chee-hwa in a speech at the SAR Establishment Ceremony on his wish to encourage traditional Chinese values FOR THE RECORD The Hang Seng Index was at 15,196.79, up 42.43 points for the week before the handover break TAKING THE PULSE 'I only came here to watch my mother dance.' Eight-year-old Chung Wing-sze showing filial, if not patriotic, pride among the crowds welcoming the PLA 



Crowds awash with emotion as troops flood in