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Hong Kong consists of the island of Hong Kong (32 sq mi; 83 sq km), Stonecutters' Island, Kowloon Peninsula, and the New Territories on the adjoining mainland. The island of Hong Kong was ceded to Britain in 1841. Stonecutters' Island and Kowloon were annexed in 1860, and the New Territories, which are mainly agricultural lands, were leased from China in 1898 for 99 years. On July 1, 1997, Hong Kong was returned to China. The vibrant capitalist enclave retains its status as a free port, with its laws to remain unchanged for 50 years. Its first chief executive, Tung Chee-hwa, formulated a policy agenda based on the concept of ?one country, two systems,? thus preserving Hong Kong's economic independence.

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