Bloomberg L.P.

Type	Limited partnership
Industry	Mass media
Founded	October 1, 1981 (1981-10-01)[1]
Founder(s)	Michael Bloomberg, Thomas Secunda, Duncan MacMillan, Charles Zegar
Headquarters	Bloomberg Tower, Manhattan, New York City, New York, U.S.
Number of locations	200 offices (June 2010)[2]
Key people	Peter Grauer (Chairman) Dan Doctoroff (President)
Products	Broadcasting, publishing, radio
Revenue	US$ 6.9 billion (projected 2010)
Owner(s)	Michael Bloomberg (88%)[3]
Employees	13,000 (Dec 2010)[2]
Website	Bloomberg.net

Bloomberg broadcasting studio in London

Bloomberg L.P. is an American multinational mass media corporation based in New York City, New York. Bloomberg makes up one third of the $16 billion global financial data market^[4] with estimated revenue of $6.25 billion in 2009.^[5] Bloomberg L.P. was founded by Michael Bloomberg with the help of Thomas Secunda, Duncan MacMillan, and Charles Zegar in 1981 and a 30% ownership investment by Merrill Lynch.^[6] The company provides financial software tools such as analytics and equity trading platform, data services and news to financial companies and organizations around the world through the Bloomberg Terminal (via its Bloomberg Professional Service),^[7] its core money-generating product. Many customers use only a small fraction of the machine's 30,146 functions.^[8] Bloomberg L.P. has grown to include a global news service, including television, radio, the Internet and printed publications.

Its current headquarters are located at the Bloomberg Tower, in Midtown Manhattan, New York City. The building is also known as One Beacon Court for the lighted rectangular beacon that caps the tower and the paved courtyard at the ground level.^[9]

Bloomberg L.P. was formed as a Delaware Limited Partnership in 1981 and has been in business since 1983. Michael Bloomberg owns 85% of the partnership. Bloomberg's core business is leasing terminals to subscribers. It also runs Bloomberg Television, a financial Television network, and a business radio station WBBR in New York City at a loss^{[citation needed]}. Bloomberg's revenue for 2009 was estimated at $6.25 billion. Based on that estimate, the new projections would push revenue to nearly $6.9 billion for 2010.^[10] There are currently over 300,000 Bloomberg Terminal subscribers worldwide. Its competitors include SNL Financial, Interactive Data Corporation, Thomson Reuters, Capital IQ, Dow Jones Newswires, FactSet Research Systems and smaller companies such as New York Financial Press. In late 1996 Bloomberg bought back one-third of Merrill Lynch's 30 percent stake in his company for $200 million^[11] valuing the company at $667 million. In July 2008, Merrill Lynch agreed to sell its 20% stake in the firm back to Bloomberg, for a reported $4.43 billion, valuing the firm at approximately $22.5 billion.^[12][13]

History, services and products[link]

In 1981, Salomon Brothers was acquired, and Michael Bloomberg, a general partner, was given a $10 million partnership settlement.^[14] Using this money, Bloomberg went on to set up a company named Innovative Market Systems. In 1982, Merrill Lynch became the new company's first customer, installing 22 Market Master terminals and investing $30 million in the company.^{[15][16] [17]} In 1986, the company was renamed Bloomberg L.P. and by 1988, 5000 terminals had been installed.^[18] Within a few years, ancillary products including Bloomberg Tradebook (a trading platform), the Bloomberg Messaging Service, and the Bloomberg newswire were launched.

In addition to its financial services offerings, Bloomberg launched its news services division in 1990. Bloomberg News (originally known as Bloomberg Business News) has over 2,000 employees and 145 bureaus around the world, producing more than 5,000 stories daily.^[19] It now provides information to approximately 350 newspapers and magazines worldwide, including The Economist, The New York Times and USA Today.^[20]

To run for the position of Mayor of New York against Democrat Mark Green in 2001, Mike Bloomberg gave up his position of CEO at Bloomberg and appointed Lex Fenwick as CEO in his stead.^[21] Daniel Doctoroff, former deputy mayor in the Bloomberg administration, now serves as president.^[22] Peter Grauer is the chairman. In 2008, Fenwick became the CEO of Bloomberg Ventures, a new venture capital division.

In September 2007, the Equal Employment Opportunity Commission filed a class-action lawsuit on behalf of more than 80 female employees, who argue Bloomberg L.P. engaged in a pattern of discrimination against pregnant women who took maternity leave.^[23] The suit alleges that 'Michael Bloomberg is responsible for the creation of the systemic, top-down culture of discrimination' at the company.^[23] A Bloomberg L.P. spokeswoman said: 'We are confident that once all the facts come out they will demonstrate that the claims have no merit.'^[23]

Bloomberg News was the subject of an investigative feature by Vanity Fair in December 2008.^[24]

In 2009, Bloomberg acquired BusinessWeek, a consumer oriented business magazine and Web property, from McGraw-Hill;^[25] and New Energy Finance, now called Bloomberg New Energy Finance, a data company focused on energy investment and carbon markets research based in the U.K.^[26] The same year, The New York Times covered Bloomberg's growth and aspirations in a full-length media section feature.^[27]

On September 30, 2011, Bloomberg L.P. completed its acquisition of Bureau of National Affairs for About $990 millions.^[28]

In May 2012,Bloomberg acquired Dublin-based software provider PolarLake and is launching a new enterprise data management (EDM) service to help companies acquire, manage and distribute data across their organizations.^[29]

Bloomberg New Energy Finance is a specialist provider of financial information and research to the renewable energy technology sector and its investors worldwide.^[30]

Corporate governance[link]

As of July 2010, members of the board of directors of Bloomberg include: Peter Grauer, Daniel Doctoroff, Thomas Secunda, Arthur Levitt, Jane Bryant Quinn, Frank Savage, [ichard DeScherer and [Hugh Lowenstein].^[31]

Litigation against Board of Governors of Federal Reserve System[link]

November 7, 2008, Bloomberg L.P. News brought a lawsuit (Bloomberg L.P. v. Board of Governors of the Federal Reserve System) against the Board of Governors of the Federal Reserve System to force the Board to reveal the identities of firms for which it has provided guarantees during the Late-2000s financial crisis.^[32] Bloomberg, L.P. won at the trial court and the Fed's appeals were rejected at both the United States Court of Appeals for the Second Circuit and the U.S. Supreme Court. The data^[33] was released March 31, 2011.^[34]

See also[link]

	New York City portal
	Companies portal

Notes[link]

External links[link]

Wikimedia Commons has media related to: Bloomberg L.P.

• Official website
• Bloomberg: Overview
• PND News – New York City Mayor Gave $130 Million to Charity in 2002
• Bloomberg LP v. Triple E Holdings Limited (2002) GENDND 1665 (13 December 2002)
• The Vault, containing a company overview
• Fortune Magazine: Bloomberg LP is a prodigious success
• Vanity Fair: Bloomberg Without Bloomberg

Paul Bremer
Bremer responding to reporter during a Pentagon news briefing. (September 26, 2003)
Administrator of the Coalition Provisional Authority of Iraq
In office May 12, 2003 – June 28, 2004
Prime Minister	Mohammad Bahr al-Ulloum (Acting) Ibrahim al-Jaafari Ahmed Chalabi Ayad Allawi Jalal Talabani Abdul Aziz al-Hakim Adnan Pachachi Mohsen Abdel Hamid Mohammad Bahr al-Ulloum Massoud Barzani Ezzedine Salim Ghazi Mashal Ajil al-Yawer Ayad Allawi
Deputy	Jeremy Greenstock
Preceded by	Jay Garner
Succeeded by	Ghazi Mashal Ajil al-Yawer (Acting President)
United States Ambassador to the Netherlands
In office August 31, 1983 – August 25, 1986
President	Ronald Reagan
Preceded by	William J. Dyess
Succeeded by	John Shad
Personal details
Born	(1941-09-30) September 30, 1941 (age 70) Hartford, Connecticut, United States
Political party	Republican
Spouse(s)	Frances Winfield
Children	2
Alma mater	Yale University Harvard Business School Sciences Po Paris
Profession	Diplomat
Religion	Roman Catholicism[citation needed] Episcopalian (Formerly)[citation needed]

Wikisource has original text related to this article: Letter to L. Paul Bremer

Lewis Paul "Jerry" Bremer III (born September 30, 1941) is an American diplomat. He is most notable for his role as the head of the Coalition Provisional Authority charged with overseeing Iraq's occupation after the 2003 invasion. He reported primarily to the U.S. Secretary of Defense Donald Rumsfeld and exercised authority over Iraq's civil administration. He served in this capacity from May 11, 2003, until June 28, 2004.

Early life and career[link]

Born in Hartford, Connecticut, Bremer was educated at New Canaan Country School, Kent School and Phillips Academy. Bremer's father was president of the Christian Dior Perfumes Corporation in New York. His mother was a lecturer in art history at the University of Bridgeport. Bremer graduated from Yale University in 1963 and went on to earn an MBA from Harvard University in 1966. He later continued his education at the Institut d'Etudes Politiques de Paris, where he earned a Certificate of Political Studies (CEP).

That same year he joined the Foreign Service, which sent him first to Kabul, Afghanistan, as a general services officer. He was assigned to Blantyre, Malawi, as economic and commercial officer from 1968 to 1971.

During the 1970s, Bremer held various domestic posts with the State Department, including posts as an assistant to Henry Kissinger from 1972–76.^[1] He was Deputy Chief of Mission in Oslo, Norway from 1976–79, returning to the US to take a post of Deputy Executive Secretary of the Department of State, where he remained from 1979–81. In 1981, he was promoted to Executive Secretary and Special Assistant to Alexander Haig.

Ronald Reagan appointed Bremer as Ambassador to the Netherlands in 1983 and Ambassador-at-Large for Counterterrorism in 1986^[2] (and Coordinator for Counterterrorism). Bremer retired from the Foreign Service in 1989 and became managing director at Kissinger and Associates, a worldwide consulting firm founded by Henry Kissinger. A Career Member of the Senior Foreign Service, Class of Career Minister, Bremer received the State Department Superior Honor Award, two Presidential Meritorious Service Awards, and the Distinguished Honor Award from the Secretary of State. Before rejoining government in 2003, he was Chairman and CEO of Marsh Crisis Consulting, a risk and insurance services firm which is a subsidiary of Marsh & McLennan Companies, Inc., a trustee on the Economic Club of New York,^[3] and a board member of Air Products and Chemicals, Inc., Akzo Nobel NV, the Harvard Business School Club of New York^[4] and The Netherlands-America Foundation. He served on the International Advisory Boards of Komatsu Corporation and Chugai Pharmaceuticals.

Bremer was appointed Chairman of the National Commission on Terrorism by House Speaker Dennis Hastert in 1999. He also served on the National Academy of Science Commission examining the role of Science and Technology in counterterrorism. Bremer and his wife were the founders of the Lincoln/Douglass Scholarship Foundation, a Washington-based not-for-profit organization that provides high school scholarships to inner city youths.

Bremer and 1,700 of the employees of Marsh & McLennan had offices in the World Trade Center. Bremer's office was in the North Tower. In an interview with CNN after the Sept 11 attacks, he claimed that their office was located "above where the second aircraft hit."^[5]

Governor of Iraq[link]

Bremer arrived in Iraq as the U.S. Presidential Envoy on May 2003, and on May 11 replaced lieutenant general Jay Garner as Director of the Office for Reconstruction and Humanitarian Assistance. In June, the Office was transformed into the Coalition Provisional Authority, and Bremer, as U.S. Administrator of Iraq, became the chief executive authority in the country.^[6][7]

As the top civil administrator of the former Coalition Provisional Authority, Bremer was permitted to rule by decree. Among his first and most notable decrees were Coalition Provisional Authority Order Number 1 which banned the Ba'ath party in all forms ^[8] and Coalition Provisional Authority Order Number 2 dismantled the Iraqi Army.^[9]

On July 13, 2003, Bremer approved the creation of an Iraqi Interim Governing Council with the stated mission of "ensuring that the Iraqi people's interests are represented." The council members were chosen by Bremer from among groups and individuals which had supported the American invasion of Iraq. Bremer retained veto power over the council's proposals. The council was authorized to select a limited number of delegates to key Coalition Provisional Authority committees, like the Program Review Board.

Bremer also empowered the CPA to develop and implement of the Iraqi constitution. The constitution however, turned into a controversial subject, when its first draft submitted by the CPA suggested banning political parties opposed to the US occupation from participating in elections; privatizing much of Iraq's industries and natural resources; and allowing the unelected Iraqi Interim Governing Council to sign a binding Status of Forces Agreement between Iraq and the United States. On March 1, 2004, after several hours of negotiations, the Iraqi Interim Governing Council resolved the disagreements the council members had with clauses in the constitution. A formal signing ceremony was scheduled for March 5, 2004. As the guests waited and the orchestra played, the signing was canceled due to mass demonstrations among Iraq's population. The official signing finally took place for an interim constitution, to be revised or replaced by a second constitution after Iraqi elections, on March 8, 2004.

On June 28, 2004 at 10:26 AM local time, the US-led Coalition Provisional Authority formally transferred limited sovereignty of Iraqi territory to the Iraqi Interim Government, two days ahead of schedule. Bremer departed from the country on the same day. In his farewell speech broadcast on Iraqi television, he said, "I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope. A piece of my heart will always remain here in the beautiful land between the two rivers, with its fertile valleys, its majestic mountains and its wonderful people..."

Bremer's office was a division of the United States Department of Defense, and as Administrator he reported directly to the United States Secretary of Defense and the President of the United States. His senior adviser Dan Senor served as coalition spokesman, working with military spokesman Mark Kimmitt.

Bremer's role as the head of the CPA is notable for being the subject of much criticism. Large sums of money have been reported to have gone missing under Bremer's leadership.^[10] Bremer's attempts at privatizing much of Iraq's infrastructure and mineral wealth were also highly criticized.^[11] and Bremer's decision to disband the Iraqi Army is widely credited for fueling the Iraqi insurgency against the American occupation.^[12][13]

John Negroponte replaced Bremer as the highest ranking American civilian in Iraq.

Post-Iraq[link]

This article may be in need of reorganization to comply with Wikipedia's layout guidelines. Please help by editing the article to make improvements to the overall structure. (January 2011)

After his return from Iraq, Bremer engaged in a few speaking tours. On December 14, 2004, Bremer was awarded the Presidential Medal of Freedom by President George W Bush,^[14] America's highest civil award for "especially meritorious contributions to the security or national interests of the United States, to world peace, or to cultural or other significant public or private endeavors." "He was also presented with the Department of Defense award for Distinguished Public Service and the Nixon Library^[15] honored him with the "Victory of Freedom Award" for "demonstrating leadership and working towards peace and freedom."^[16]

Bremer's April 18, 2005 visit as a guest speaker to Clark University, lead to protests against his role in the Iraq War.^[17] Dissatisfied with Bremer's speech and answers, several students also voiced disappointment at their university for having paid him $40,000 to appear.^[18] Another appearance, scheduled for the public library of his hometown, New Canaan, Connecticut, on January 18, 2006, was moved to the private St. Luke's School in the same town for fear for protests. During a February 27, 2006 public appearance at Lynchburg College, where his sister-in-law is an assistant dean, Bremer insisted that his decision to disband the Iraqi military was the correct one.

Among other things, Bremer repeatedly asserted that when he came to Iraq, the Iraqi army had abandoned its barracks, and therefore "there was no army to disband". He also repeatedly defended his decision to expel Baath Party members from government posts by comparing Saddam Hussein with Adolf Hitler.^[19]

On February 6, 2007, Bremer appeared before a Congressional committee investigating fraud and abuse and was questioned about missing funds during his tenure as head of the CPA and to respond to conclusions from a January 2005 audit report, including the missing $8.8 billion U.S. of Iraq's money and the chosen accounting method of these funds.^[20][21]

Bremer currently serves as Chairman of the Advisory Board for GlobalSecure Corporation, a company whose focus is "on securing the homeland with integrated products and services for the critical incident response community worldwide,".^[22] and on the board of directors of BlastGard International, Inc., a company located in Florida that manufactures materials to mitigate the impact of explosions. (Standard and Poor's Register)

In November 2010, Bremer joined World T.E.A.M. Sports, an Arlington, Virginia-based non-profit organization, as CEO and President. Bremer also serves as a member of the organization's board of directors.^[23]

Bremer is a member of the board of directors of the International Republican Institute.^[24]

Criticism and controversies[link]

This article's Criticism or Controversy section may compromise the article's neutral point of view of the subject. Please integrate the section's contents into the article as a whole, or rewrite the material. (November 2009)

This article is written in the style of a debate rather than an encyclopedic summary. It may require cleanup to meet Wikipedia's quality standards and make it more accessible to a general audience. Please discuss this issue on the talk page. (January 2011)

Disbanding of the Iraqi Army[link]

On May 23, 2003 Bremer issued Order Number 2,^[25] in effect dissolving the entire former Iraqi army and putting 400,000 former Iraqi soldiers out of work.^[26]

The move was widely criticized for creating a large pool of armed and disgruntled youths for the insurgency. Former soldiers took to the streets in mass protests to demand back pay. Many of them threatened violence if their demands were not met.^[27][28]

It was widely asserted within the White House and the CPA that the order to disband the Iraqi Army had little to no practical effect since it had "self-demobilized" in the face of the oncoming invasion force. This was revealed to be false, however, insofar as the CIA had conducted psychological operations against the Iraqis, such as dropping leaflets over the Army's positions prior to the invasion. The leaflets ordered the Iraqi Army to abandon their positions, return to their homes, and await further instructions.

Bremer was later heavily criticized^[29] for officially disbanding the former Iraqi Army. Bremer, however, contends that there were no armies to disband. He claimed that many soldiers simply left after the fall of Baghdad; some to protect their own families from the rampant looting. Critics claimed his extreme measures, including the firing of thousands of school teachers and removing Ba'ath party members from top government positions, helped create and worsen an atmosphere of discontent. As the insurgency grew stronger, so did the criticisms. Bremer was also in personal danger because of Iraqi perceptions of him and was henceforth heavily guarded. Attempts to assassinate him took place on numerous occasions - one of the more publicized attempts occurred on December 6, 2003 when his convoy was driving on the dangerous Baghdad Airport Road while returning to the fortified Green Zone. The convoy was hit by a bomb and gunfire, with the rear window of his official car blown away and as bullets flew, Bremer and his deputies ducked below their seats. No injuries or casualties were reported and news of the assassination attempt on Bremer was not released until December 19, 2003, during his visit to Basra.

During Bremer's stay in Iraq, the Al-Qaida leader Osama bin Laden allegedly placed a bounty of 10,000 grams of gold on Bremer, the equivalent of US$125,000 at the time.^[30]

Despite the messages the CIA reportedly communicated to the Iraqi army, the argument was still ventured that by the time Baghdad fell on April 9, 2003 the previous Army had demobilized, or as Bremer puts it, "had simply dissolved...." However, as Mark Danner reports in an essay in The New York Review of Books entitled 'Iraq: The War of Imagination' and dated September 21, 2006, American agents - including one colonel and a number of CIA operatives - had already began meeting regularly with Iraqi officers in order to reconstitute the army as a working force. Implied in this is the notion that the army - temporarily "demobilized" or not - did in fact continue to exist as a coherent entity, indeed coherent enough that it could be consulted and negotiated with. This seems to concur with the position of the first Director of the Office of Reconstruction and Humanitarian Assistance, ex-General Jay Garner, who Bremer had replaced. As Bob Woodward reports in his book State of Denial, Garner, upon hearing of the order to disband the army, attempted to convince Bremer to rethink the dissolution. Bremer was reported as saying: "The plans have changed. The thought is we don't want the residuals of the old army. We want a new and fresh army." To this, Garner replied: "Jerry, you can get rid of an army in a day, but it takes years to build one."^[31]

The issue of disbanding the old Iraqi Army found itself, once again, the center of media attention with two articles explaining why Bremer ostensibly did not make the decision on his own. The first press release by the New York Times included a letter written by Bremer to President George W. Bush dated May 20, 2003 describing the progress made so far since Bremer's arrival in Baghdad, including one sentence that reads "I will parallel this step with an even more robust measure dissolving Saddam's military and intelligence structures to emphasize that we mean business."

The second press release dated September 6, 2007 was submitted by Bremer as an Op Ed piece for the New York Times. Titled "How I Didn't Dismantle Iraq's Army", Bremer says he did not make the decision on his own, and that the decision was reviewed by "top civilian and military members of the American government"; which included General John Abizaid, who briefed officials in Washington that "'there are no organized Iraqi military units left'".

Bremer’s article goes into further about how the Coalition Provisional Authority did consider two alternatives: To recall the old army or to rebuild a new army with "both vetted members of the old army and new recruits." According to Bremer, Abizaid liked the second alternative.

Bremer also details the situation he and the major decision makers faced; especially when the large Shiite majority in the new Army could have had problems with the thought of having a former Sunni officer issuing orders.

Furthermore, a memo from U.S. Secretary of Defense Donald Rumsfeld on May 8, 2003 that said "the coalition 'will actively oppose Saddam Hussein's old enforcers - the Baath Party, Fedayeen Saddam, etc...'we will make clear that the coalition will eliminate the remnants of Saddam's regime'" was sent to both National Security Adviser Condoleezza Rice and Secretary of State Colin Powell.^[32]

After two protesters were killed by U.S. troops, the CPA agreed to pay up to 250,000 former soldiers a stipend of $50 to $150 a month. Conscripts were given a single severance payment.^[33] Many of the former soldiers found this to be grossly inadequate.^[34]

Charles H. Ferguson, director of critically acclaimed No End in Sight, created a video response to Bremer's Op Ed piece on September 6, 2007. (This was the very first New York Times video Op Ed letter in history.)

"De-Ba'thification" of the Iraqi civil service[link]

Saddam Hussein's ruling Baath Party counted among its members a huge majority of Iraq's governmental employees, including educational officials and some teachers. By order of the CPA, these skilled and mostly apolitical people were banned from holding any positions in Iraq's new government and public service. Critics claim these extreme measures, resulting in the firing of thousands of school teachers and removing Ba'ath party members from top government positions, helped create and worsen an atmosphere of discontent among those who did not "fit in" with the socioeconomic profile the Americans wanted to impose. This policy of "de-Ba'thification", now widely seen as having created bitter, new divisions in the country, and fuelling the violence that has torn Iraq apart, was reversed in January 2008.^[35][36]

Bremer was once again warned of the harm his actions would have. According to Woodward, when Garner asserted that none of the ministries would be able to function after this order, Bremer asked the Bahgdad station chief for his thoughts. "If you put this out, .... you will put 50,000 people on the street, underground, and mad at Americans," he replied. Woodward: "And these 50,000 were the most powerful, well-connected elites from all walks of life."^[37]

Management of Iraq's oil revenue[link]

Bremer was accountable to the Secretary of Defense for the actions he took. But, since his authority to spend Iraq's oil revenue derived from United Nations Resolution 1483, he was also accountable to the UN. The authority he derived from the UN to spend Iraq's oil revenue bound him to show that:

• Expenditures were intended to benefit the Iraqi people.
• The programs that were funded were decided upon, and supervised in an open, transparent manner.
• Iraqis were invited to give meaningful input into how funds were spent.
• The administrator of Iraq was co-operating with the International Advisory and Monitoring Board.
• That proper fiscal controls were in place, so that it could be demonstrated that none of the funds were diverted, or mis-spent.

One of the concerns the IAMB raised repeatedly was that the CPA had repaired the well-heads and pipelines for transporting Iraq’s oil, but they had stalled on repairing the meters that were necessary to document the shipment of Iraqi oil, so it could be demonstrated that none of it was being smuggled.

In their final press release^[38] before the CPA’s authority expired, on June 22, 2004, the IAMB stated:

The IAMB was also informed by the CPA that contrary to earlier representations the award of metering contracts have been delayed and continues to urge the expeditious resolution of this critical issue.

The CPA has acknowledged that the failure to meter the oil shipments resulted in some oil smuggling — an avoidable loss of Iraq's oil that was Bremer's responsibility. Neither Bremer nor any of his staff has offered an explanation for their failure to repair the meters.

Inadequate financial controls[link]

Failure to perform month-end cash reconciliations[link]

Under Bremer’s stewardship the CPA requested $12 billion in cash from the US treasury. Under Bremer’s stewardship the CPA paid out $12 billion in cash. The external auditors management notes^[39] point out that the CPA didn’t perform a cash reconciliation until April 2004, eleven months into Bremer's mandate, when they started their work. See Congressional hearing when Ambassador L. Paul Bremer and Stuart Bowen, the Special Inspector General for Iraq Reconstruction, testified on management of U.S. funds in Iraq.^[40]

Failure to employ qualified internal auditors[link]

In his second regulation,^[41] Bremer committed the Coalition Provisional Authority to hire a reputable firm of certified chartered accountants, to serve as internal auditors, to help make sure the Coalition's finances were administered according to modern accounting principles. These internal auditors would be separate and distinct from the external auditors who would report to the International Advisory and Monitoring Board. Bremer did not make sure the CPA hired internal auditors, however.

When the external auditors arrived, they learned that Bremer had not made sure the CPA lived up to the commitment to hire internal auditors to help set up a reliable accounting system. On the contrary they learned that a single contracted consultant kept track of the CPA’s expenditures in a series of spreadsheets.

The external auditors reported that rather than use a modern double-entry accounting system the CPA used what they described as “a single-entry, cash based, transaction list”.

Unaccounted-for funds[link]

On January 30, 2005, an official report^[42] by the Special Inspector General for Iraq Reconstruction, Stuart Bowen, cited by Time, stated that $9 billion for the reconstruction of Iraq might have disappeared in frauds, corruption and other misbehavior. On one particular salary register, only 602 names among 8206 could be verified. As another cited example, the Coalition Authority authorized Iraqi officials to postpone declaring the reception of $2.5 billion, which the provisional government had received in spring through the Oil for Food program.^[43]

Bremer wrote an eight-page reply to deny the accusations and stated that, during the IG's inquiry, Bowen's people refused to interview Bremer's deputies, and the IG's report failed to mention that Bremer and his people worked under extraordinary conditions, faced a high turnover rate, and had insufficient number of personnel to carry out their rebuilding and humanitarian relief efforts.

Bremer's claim that Bowen's staff made no attempt to interview his staff is at odds with the detailed account of the external auditors, of their attempts to meet with Bremer and his staff. In their management notes they describe how some of the CPA's senior staff, including Bremer himself, just would not make themselves available to meet with the auditors. Others, like George Wolfe, the CPA's de facto treasurer, showed a total lack of cooperation.

As head of the CPA, Bremer bears the overall responsibility for the CPA's hiring policies that led to his staff being dangerously inexperienced and unable to provide the oversight necessary to protect the funds they were administering.^{[improper synthesis?]}

This issue also became a topic of discussion during some of Bremer's Q&A sessions with students who attended Bremer's presentations during Bremer's campus speaking tours. Some questioned Bremer if he could have done things differently in Iraq, but were notably disappointed when he avoided the question. Bremer allegedly responded to one such question with, “I will tell you what I told them, I'm saving that for my book... I need more time to reflect.”

In February 2007, Bremer defended the way he spent billions of dollars in Iraqi funds after the U.S. invasion. In a prepared testimony he said that he did the best he could to kickstart the Iraqi economy, "which was flat on its back."^[44]

Progress of reconstruction[link]

One of the CPA's most important tasks was the reconstruction of Iraq's infrastructure. Compared to the rapid repair of Iraq's oil infrastructure — with the notable exception of the meters — the progress of reconstruction on Iraq's potable water, sewage and electricity systems was extremely slow. Defenders^{[clarification needed]} argued that this was due to the unanticipated volume and fierceness of those resisting the Coalition's occupation. Critics^{[clarification needed]} blame the CPA's preference for contracts with connected US firms; only 2% of the reconstruction contracts in 2003 were awarded to Iraqi firms.^{[citation needed]}

Shutting down the newspaper Al-Hawza[link]

On March 28, 2004 Bremer ordered the 759th Military Police Battalion to shut down controversial Iraqi newspaper al-Hawza for two months.^[45] This move was widely criticized as running directly counter to the Bush administration's announced goal of helping transform Iraq into a modern, democratic state. This move was even criticized by members of Bremer's own appointees on the Iraqi Governing Council.

Al-Hawza started after the removal of Saddam Hussein and was considered a mouthpiece for Shi'ite cleric Muqtada al-Sadr.^[46] It was shut down by the United States-led administration headed by Bremer on March 28, 2004, after being accused of encouraging violence against Coalition troops. There was discussion with Sir Jeremy Greenstock (UK's Special Representative for Iraq), about preparations to arrest al-Sadr, who by early March 2004 had increased his militia following, the Mahdi army, from about 200 followers to some 6,000, in seven months. Bremer wrote in his book that "Greenstock said that this would be a difficult time to go after him ... I first urged [his] arrest last August...".^[47]

Iyad Allawi, leader of the interim government, explicitly gave al-Hawza permission to re-open on July 18, 2004.

Granting foreign contractors immunity from Iraqi law[link]

Two days before he left Iraq, Bremer signed "Order 17"^[48] giving all staff associated with the CPA and the American government immunity from Iraqi law. One of his former top aides is quoted as saying, “we wanted to make sure our military, civilians and contractors were protected from Iraqi law.”^[49] This stipulation was later incorporated into Iraqi law.^[50]

Since then, violent events in Iraq involving American security companies such as Blackwater have resulted in great resentment among Iraqis, who view them as private armies acting with impunity on their soil.^{[51][52][53][54]}

Early departure[link]

Bremer's early departure was sprung on the world press as a complete surprise. But the turnover of political power a couple of days earlier was suggested by members of the Bush administration to thwart any plans the insurgency may have had for June 30.

U.S. intelligence sources had monitored chatter that suggested resistance elements were planning demonstrations, or outright attacks, to coincide with the time of the official handover. An early handover would preempt the plans of resistance elements.^[55]

Others read al-Hayat's version published one day after Bremer's departure. The Arabic language newspaper released a story about Bremer's alleged romantic ties with an Iraqi translator, who continued to work for Bremer despite their apparent conflict of interests. The Arabic language newspaper further details the affair stating that the Iraqi woman and her family left for Jordan three days prior to the handover to wait for their anticipated departure for the United States. The paper can be quoted as saying that close acquaintances of the "young Iraqi lover" knew about the affair with the top American official (presumably Bremer) and knew something about future marriage plans. The subject of Bremer taking Iraqi women as "wives" has come up before during his stay in Iraq. Bremer responded to a reporter's question about the rumor of marrying Iraqi women, "I have the maximum number of wives permitted by my religion".

His early departure was disruptive to the smooth transition of authority, as the KPMG audit of the Development Fund for Iraq made clear. In their management notes the external auditors describe trying to meet with Bremer, and being very surprised by his early departure.

Many of Bremer's senior staff left when he did, meaning that important documents, required for the completion of the audit, could not be signed by the appropriate staff members.

There are others, however, who feel that Bremer should have been relieved far earlier. "Bremer is the largest single disaster in American foreign policy in modern times," said former Speaker of the House Newt Gingrich. "Bremer, no later than September [2003], should have been relieved.^[56]

Life after public service[link]

After his departure from the US government, Bremer, moved to Chester, Vermont and became an artist, crafting oil paintings of New England country landscapes. He also as of 2009 reportedly did consulting work and served on a number of boards in the Washington area.^[57] He remained a media presence with interviews and the release of his memoirs, and criticized the Obama administration for not devoting more effort to promoting democracy overseas.^[58] He is also a consistent advocate for a continued US presence in Iraq.^[59]

While many other conservatives began advocating for a withdrawal from Afghanistan, Bremer endorsed the Obama administration's new strategy in 2010, describing it as "reasonable" and stating: "The President deserves credit for deciding to replicate President Bush’s Iraq strategy by sending more troops to the fight in Afghanistan." Following his return to private life, he also endorsed Samuel Huntington's "clash of civilizations" thesis. He stated: "It is a fact of history that Europe is based on Judeo-Christian values. But Europe seems unwilling, or perhaps afraid, to acknowledge this reality."^[60]

Quotations[link]

• "The new administration seems to be paying no attention to the problem of terrorism. What they will do is stagger along until there's a major incident and then suddenly say, `Oh, my God, shouldn't we be organized to deal with this?'" (February 26, 2001, speaking at a McCormick Tribune Foundation conference on terrorism)
• "...there are reasons why some people turn to terrorism. There are political reasons, there are economic reasons. Some people are simply criminals...."^[61]
• "Ladies and gentlemen... we got him!" (December 14, 2003, announcing the capture of Saddam Hussein)
• "If you don’t know what you stand for, you cannot easily figure out how to defend it." (Interview, Bellum: A Project of The Stanford Review, March 18, 2010)

References[link]

Further reading[link]

• L. Paul Bremer & Malcolm McConnell: My Year In Iraq: The Struggle to Build a Future of Hope, 1st edn. (Canada: Simon & Schuster, January 2006). ISBN 0-7432-7389-3 and ISBN 978-0-7432-7389-3.

External links[link]

• "Baghdad year zero: Pillaging Iraq in pursuit of a neocon utopia", Naomi Klein, September 2004
• Paul Bremer profile, NNDB
• Paul Bremer timeline at the History Commons
• CPA Bios
• Bremer's Tale: The Top American in Iraq, NPR Fresh Air from WHYY (Audio), January 10, 2006
• CPA Reunion Party January 14, 2006
• "Frontline: the lost year in iraq |PBS" 2006
• What has happened to Iraq's missing $1bn?, The Independent, September 19, 2005
• My sadness at the privatisation of Iraq, Times Online, August 12, 2005
• Former Bush aide turns critic as Iraq inspector, Wall Street Journal, July 26, 2005—Contains another perspective on the conflict between Bremer and Inspector General Bowen
• Iraq reconstruction riddled with waste, audits find The Seattle Times, July 4, 2005
• Ave Maria University Commencement Address, June 19, 2005
• Bremer Speaks at Clark University Worcester IMC April 19, 2005
• Bremer, students spar The Bowdoin Orient, April 15, 2005
• Bremer explains, defends Iraq war Brunswick Times Record, April 11, 2005
• Oversight of Funds Provided to the Iraqi Ministries through the National Budget Process report from the Special Inspector General for Iraq Reconstruction that documents the unaccounted for $9 billion
• TD Waterhouse Keynote Address @ IA Conference American Rhetoric February 4, 2005
• Transcript: Paul Bremer, Former U.S. Administrator in Iraq Fox News July 6, 2004
• Paul Bremer's Rough Ride TIMES Archive June 28, 2004
• Bremer Answers QuestionsUSAToday June 17, 2004
• In Iraq, the Job Opportunity of a Lifetime Washington Post, May 22, 2004 (about young volunteers hired by the Pentagon to handle financial tasks in Iraq)
• Racing the Clock in IraqNewsweek February 9, 2004
• Letter From Baghdad, War After the War The New Yorker November 2003
• "Online NewsHour" Interview September 24, 2003
• Frontline Interview with L. Paul Bremer August 1, 2003
• Faith Gives Him Strength, June 19, 2003
• How Should America Address Terrorist Aggression, CNN television interview September 14, 2001
• Countering the Changing Threat of International Terrorism A Presentation by Ambassador L. Paul Bremer The Nixon Center July 19, 2000
• Global Threat, pbs interview of L. Paul Bremer, III and former CIA official Larry Johnson, June 6, 2000
• Terrorism: its evolving nature - by L. Paul Bremer, III US Dept. of State Bulletin May 1989

Coordinates: 22°16′42″N 114°09′32″E / 22.27833°N 114.15889°E / 22.27833; 114.15889

Hong Kong Special Administrative Region of the People's Republic of China[note 1] 中華人民共和國香港特別行政區
Flag Emblem
Anthem: March of the Volunteers 《義勇軍進行曲》
View at night from Victoria Peak
Official language(s)		Chinese, English[note 2]
Spoken languages		Cantonese, English
Writing systems		Traditional Chinese, English alphabet
Demonym		Hong Konger
Government		Special Administrative Region of the People's Republic of China
-	Chief Executive	Donald Tsang
-	Chief Executive-elect	CY Leung
-	Chief Justice	Geoffrey Ma
-	President of the Legislative Council	Jasper Tsang
Legislature		Legislative Council
Establishment
-	Treaty of Nanking	29 August 1842
-	Japanese occupation	25 December 1941 – 15 August 1945
-	Conveyance from British sovereignty to Chinese sovereignty	1 July 1997
Area
-	Total	1,104 km2 (179th) 426 sq mi
-	Water (%)	4.58 (50 km²; 19 mi²)[3]
Population
-	2010 census	7,061,200[4]
-	Density	6,480[5]/km2 (4th) 16,576/sq mi
GDP (PPP)		2011 estimate
-	Total	$351.119 billion[6]
-	Per capita	$49,137[6]
GDP (nominal)		2011 estimate
-	Total	$243.302 billion[6]
-	Per capita	$34,049[6]
Gini (2007)		43.4[7]
HDI (2011)		0.898[8] (very high) (13th)
Currency		Hong Kong dollar (HKD)
Time zone		HKT (UTC+8)
Date formats		yyyy年m月d日 (Chinese) dd-mm-yyyy (English)
Drives on the		left
ISO 3166 code		HK
Internet TLD		.hk and .香港
Calling code		+852

Hong Kong
Chinese	香港
Cantonese Jyutping	Hoeng1gong2
Cantonese Yale	Hēunggóng
Hanyu Pinyin	Xiānggǎng
Literal meaning	Fragrant harbour
Transcriptions Hakka - Romanization Hiông-kóng Mandarin - Hanyu Pinyin Xiānggǎng - Wade–Giles Hsiang1-kang3 - IPA [ɕjáŋkàŋ] Min - Hokkien POJ Hiong-kang Wu - Romanization shian平kaon上 Cantonese (Yue) - Jyutping Hoeng1gong2 - IPA [hœ̂ːŋkɔ̌ːŋ] - Yale Romanization Hēunggóng
Hong Kong Special Administrative Region
Traditional Chinese	香港特別行政區 (or 香港特區)
Simplified Chinese	香港特别行政区 (or 香港特区)
Transcriptions Hakka - Romanization Hiông-kóng Thi̍t-phe̍t Hàng-tsṳn-khî Mandarin - Hanyu Pinyin Xiānggǎng Tèbié Xíngzhèngqū Min - Hokkien POJ Hiong-kang Te̍k-pia̍t Hêng-chèng-khu Wu - Romanization shian平kaon上 deh入bih入 ghan平tsen去chiu平 Cantonese (Yue) - Jyutping Hoeng1gong2 Dak6bit6 Hang4zing3 Keoi1

This article contains Chinese text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Chinese characters.

Full view of Kowloon and Hong Kong. The old Kai Tak Airport can be seen on the left.

The Lei Cheng Uk Han Tomb Museum located in northwest Kowloon was built in 1969 after the tomb's discovery in 1955.

Hong Kong^{[note 3]} (Chinese: 香港) is one of two special administrative regions (SARs) of the People's Republic of China (PRC), the other being Macau. A city-state^[9] situated on China's south coast and enclosed by the Pearl River Delta and South China Sea,^[10] it is known for its expansive skyline and deep natural harbour. With a land mass of 1,104 km² (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world.^[11] Hong Kong's population is 95 percent ethnic Chinese and 5 percent from other groups.^[12] Hong Kong's Han Chinese majority originate mainly from the cities of Guangzhou and Taishan in the neighbouring Guangdong province.^[13]

Hong Kong became a colony of the British Empire after the First Opium War (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon Peninsula in 1860 and then the New Territories in 1898. It was occupied by Japan during the Pacific War, after which the British resumed control until 1997, when China resumed sovereignty.^[14][15] The region espoused minimum government intervention under the ethos of positive non-interventionism during the colonial era.^[16] The time period greatly influenced the current culture of Hong Kong, often described as "East meets West",^[17] and the educational system, which used to loosely follow the system in England^[18] until reforms implemented in 2009.^[19]

Under the principle of "one country, two systems", Hong Kong has a different political system from mainland China.^[20] Hong Kong's independent judiciary functions under the common law framework.^[21][22] Hong Kong Basic Law, its constitutional document, stipulates that Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations and military defence, governs its political system.^[23][24] Although it has a burgeoning multi-party system, a small-circle electorate^{[clarification needed]} controls half of its legislature. The Chief Executive of Hong Kong, the head of government, is selected by a Selection Committee / Election Committee with 400 to 1200 members, during the first 20 years.^{[25] [26][27] [28]}

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the eighth most traded currency in the world.^[29] The lack of space caused demand for denser constructions, which developed the city to a centre for modern architecture and the world's most vertical city.^[30][31] Hong Kong has one of the highest per capita income in the world.^[6] The dense space also led to a highly developed transportation network with public transport travelling rate exceeding 90 percent,^[32] the highest in the world.^[33] Hong Kong has numerous high international rankings in various aspects. For instance, its economic freedom, financial and economic competitiveness, quality of life, corruption perception, Human Development Index, etc., are all ranked highly.^{[34][35][36][37][38][39][40]} According to both UN and WHO estimates, Hong Kong has the second longest life expectancy of any country in the world. ^[41][42]

Etymology[link]

The name "Hong Kong" is an approximate phonetic rendering of the pronunciation of the spoken Cantonese or Hakka name "香港", meaning "fragrant harbour".^[43] Before 1842, the name referred to a small inlet – now Aberdeen Harbour or 香港仔 hoeng¹ gong² zai² "Little Hong Kong" – between the Aberdeen Island and the south side of Hong Kong Island, which was one of the first points of contact between British sailors and local fishermen.^[44]

The reference to fragrance may refer to the harbour waters sweetened by the fresh water estuarine influx of the Pearl River, or to the incense from factories lining the coast to the north of Kowloon, which was stored around Aberdeen Harbour for export before the development of Victoria Harbour.^[43] In 1842, the Treaty of Nanking was signed, and the name Hong Kong was first recorded on official documents to encompass the entirety of the island.^[45]

History[link]

Pre-colonial[link]

Archaeological studies support a human presence in the Chek Lap Kok area from 35,000 to 39,000 years ago, and in Sai Kung Peninsula from 6,000 years ago.^[46][47][48] Wong Tei Tung and Three Fathoms Cove are the two earliest sites of human habitation in the Paleolithic period. It is believed the Three Fathom Cove was a river valley settlement and Wong Tei Tung was a lithic manufacturing site. Excavated Neolithic artefacts suggest cultural differences from the Longshan culture in northern China and settlement by the Che people prior to the migration of the Baiyue.^[49][50] Eight petroglyphs were discovered on surrounding islands, which dated to the Shang Dynasty in China.^[51]

In 214 BC, Qin Shi Huang, the first emperor of China, conquered the Baiyue tribes in Jiaozhi (modern Liangguang region) and incorporated the territory into imperial China for the first time. Modern Hong Kong is located in Nanhai commandery (modern Nanhai District) and near the ancient capital city Pun Yue.^[52][53][54] The area was consolidated under the kingdom of Nanyue, founded by general Zhao Tuo in 204 BC after the Qin Dynasty collapsed.^[55] When the kingdom was conquered by Emperor Wu of Han in 111 BC, the land was assigned to the Jiaozhi commandery under the Han Dynasty. Archaeological evidence indicates the population increased and early salt production flourished in this time period. Lei Cheng Uk Han Tomb in the Kowloon Peninsula is believed to have been built during the Han Dynasty.^[56]

During the Tang Dynasty period, the Guangdong region flourished as a regional trading center. In 736, Emperor Xuanzong of Tang established a military town in Tuen Mun to defend the coastal area in the region.^[57] The first village school, Li Ying College, was established around 1075 in the New Territories under the Northern Song Dynasty.^[58] During the Mongol invasion in 1276, the Southern Song Dynasty court moved to Fujian, then to Lantau Island and later to Sung Wong Toi (modern Kowloon City), but the child Emperor Bing of Song committed suicide by drowning with his officials after being defeated in the Battle of Yamen. Hau Wong, an official of the emperor is still worshipped in Hong Kong today.^[59]

The earliest recorded European visitor was Jorge Álvares, a Portuguese explorer who arrived in 1513.^[60][61] After establishing settlements in the region, Portuguese merchants began trading in southern China. At the same time, they invaded and built up military fortifications in Tuen Mun. Military clashes between China and Portugal led to the expulsion of the Portuguese. In the mid-16th century, the Haijin order banned maritime activities and prevented contact with foreigners; it also restricted local sea activity.^[59] In 1661–69, the territory was affected by the Great Clearance ordered by Kangxi Emperor, which required the evacuation of the coastal areas of Guangdong. It is recorded that about 16,000 persons from Xin'an County were driven inland, and 1,648 of those who left are said to have returned when the evacuation was rescinded in 1669.^[62] What is now the territory of Hong Kong became largely wasteland during the ban.^[63] In 1685, Kangxi became the first emperor to open limited trading with foreigners, which started with the Canton territory. He also imposed strict terms for trades such as requiring foreign traders to live in restricted areas, staying only for the trading seasons, banning firearms, and trading with silver only.^[64] The East India Company made the first sea venture to China in 1699, and the region's trade with British merchants developed rapidly soon after. In 1711, the company established its first trading post in Canton. By 1773, the British reached a landmark 1,000 chests of opium in Canton with China consuming 2,000 chests annually by 1799.^[64]

British colonial era[link]

• 

  Flag of the British colony of Hong Kong(used in between 1870-1876)

• 

  Flag of the British colony of Hong Kong(used in between 1876-1910)

• 

  Flag of the British colony of Hong Kong(used in between 1910-1959)

• 

  Flag of the British colony of Hong Kong (Unofficial Red ensign for Hong Kong used in between 1959 to prior the Handover of Hong Kong to the PRC in 1997)

General Post Office in Central,City of Victoria, 1911

The Queen's Pier in front of City Hall in Edinburgh Place.

Victoria City in the 1890s.

View of Hong Kong Island from Kowloon (published 1843)

In 1839, the refusal by Qing Dynasty authorities to import opium resulted in the First Opium War between China and Britain. Hong Kong Island was occupied by British forces on 20 January 1841 and was initially ceded under the Convention of Chuenpee as part of a ceasefire agreement between Captain Charles Elliot and Governor Qishan, but the agreement was never ratified due to a dispute between high ranking officials in both governments.^[65] It was not until 29 August 1842 that the island was formally ceded in perpetuity to the United Kingdom under the Treaty of Nanking. The British established a crown colony with the founding of Victoria City the following year.^[66]

Under British rule, the population of Hong Kong island had increased from 7,450 Chinese residents, mostly fishermen, in 1841 to over 115,000 Chinese and 8,754 Europeans in Hong Kong (including Kowloon) in 1870.^[67]

In 1860, after China's defeat in the Second Opium War, the Kowloon Peninsula and Stonecutter's Island were ceded in perpetuity to Britain under the Convention of Peking.

In 1894, the deadly Third Pandemic of bubonic plague spread from China to Hong Kong, causing 50,000–100,000 deaths.^[68]

In 1898, under the terms of the Convention for the Extension of Hong Kong Territory, Britain obtained a 99-year lease of Lantau Island and the adjacent northern lands, which became known as the New Territories.^[69] Hong Kong's territory has remained unchanged to the present.^[70][71]

During the first half of the 20th century, Hong Kong was a free port, serving as an entrepôt of the British Empire. The British introduced an education system based on their own model, while the local Chinese population had little contact with the European community of wealthy tai-pans settled near Victoria Peak.^[69]

Japanese invasion[link]

In conjunction with its military campaign, the Empire of Japan invaded Hong Kong on 8 December 1941.^[72] The Battle of Hong Kong ended with British and Canadian defenders surrendering control of the colony to Japan on 25 December.^[73] During the Japanese occupation of Hong Kong, civilians suffered widespread food shortages, rationing, and hyper-inflation due to forced exchange of currency for military notes. Through a policy of enforced repatriation of the unemployed to the mainland throughout the period, because of the scarcity of food, the population of Hong Kong had dwindled from 1.6 million in 1941 to 600,000 in 1945, when the United Kingdom resumed control of the colony.^[74]

Cold war era[link]

Granted by the College of Arms on 21 January 1959, the Blue Ensign colonial flag and coat of arms of Hong Kong were used by British Hong Kong during 1959–1997.

Hong Kong's population recovered quickly as a wave of migrants from China arrived for refuge from the ongoing Chinese Civil War. When the PRC was proclaimed in 1949, more migrants fled to Hong Kong for fear of persecution by the Communist Party.^[69] Many corporations in Shanghai and Guangzhou shifted their operations to Hong Kong.^[69]

In the 1950s, Hong Kong's rapid industrialization was driven by textile exports and other expanded manufacturing industries. As the population grew and labour costs remained low, living standards rose steadily. ^[75] The construction of Shek Kip Mei Estate in 1953 followed a massive slum fire, and marked the beginning of the public housing estate programme designed to cope with the huge influx of immigrants. Trade in Hong Kong accelerated even further when Shenzhen, immediately north of Hong Kong, became a special economic zone of the PRC, and Hong Kong was established as the main source of foreign investment in China.^[76] The manufacturing competitiveness gradually declined in Hong Kong due to the development of the manufacturing industry in southern China beginning in the early 1980s. By contrast, the service industry in Hong Kong experienced high rates of growth in the 1980s and 1990s after absorbing workers released from the manufacturing industry.^[77]

Development of Hong Kong Island in 1986

Throughout the British colonial era, Hong Kong was industrialized and improved in all aspects from its economy to its health care system. Many health facilities were built for its citizens, for example the Queen Elizabeth Hospital, Hong Kong, the Queen Mary Hospital, Hong Kong, the Princess Margaret Hospital, Hong Kong and the Prince of Wales Hospital. Many changes happened during this era shaped the future of Hong Kong. In the year 1983, when the United Kingdom reclassified Hong Kong from a British crown colony to a dependent territory, the governments of the United Kingdom and China were already discussing the issue of Hong Kong's sovereignty due to the impending expiry (within two decades) of the lease of the New Territories. In 1984, the Sino-British Joint Declaration – an agreement to transfer sovereignty to the People's Republic of China in 1997 – was signed.^[69] It stipulated that Hong Kong would be governed as a special administrative region, retaining its laws and a high degree of autonomy for at least 50 years after the transfer. The Hong Kong Basic Law, which is based on the English law would serve as the constitutional document after the transfer, was ratified in 1990.^[69]

Since 1997[link]

File:British new style passport.jpg

Left:Old British passports issued to Hong Kong citizens. Right:The British National (Overseas) passport issued to residents of Hong Kong prior 1997, holders are British nationals and Commonwealth citizens, but not British Citizens.

On 1 July 1997, the transfer of sovereignty from United Kingdom to the PRC occurred, officially ending 156 years of British colonial rule. Hong Kong became China's first special administrative region, and Tung Chee Hwa took office as the first Chief Executive of Hong Kong. That same year, Hong Kong suffered an economic double blow from the Asian financial crisis and the H5N1 avian influenza.^[69] In 2003, Hong Kong was gravely affected by the outbreak of severe acute respiratory syndrome (SARS).^[78][79] The World Health Organization reported 1,755 infected and 299 deaths in Hong Kong.^[80] An estimated 380 million Hong Kong dollars (US$48.9 million) in contracts were lost as a result of the epidemic.^[81]

On 10 March 2005, Tung Chee Hwa announced his resignation as Chief Executive due to "health problems".^[82] Donald Tsang, the Chief Secretary for Administration at the time, entered the 2005 election unopposed and became the second Chief Executive of Hong Kong on 21 June 2005.^[83] In 2007, Tsang won the Chief Executive election and continued his second term in office.^[84]

In 2009, Hong Kong hosted the fifth East Asian Games, in which nine national teams competed. It was the first and largest international multi-sport event ever held in the territory.^[85] Today, Hong Kong continues to serve as an important global financial centre, but faces uncertainty over its future due to the growing mainland China economy, and its relationship with the PRC government in areas such as democratic reform and universal suffrage.^[86]

Governance[link]

The Legislative Council Building in Central became the home to Legislative Council of Hong Kong in 1985.

In accordance with the Sino-British Joint Declaration, and the underlying principle of one country, two systems, Hong Kong has a "high degree of autonomy as a special administrative region in all areas except defence and foreign affairs."^{[note 4]} The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years beyond the 1997 handover.^{[note 5]} The guarantees over the territory's autonomy and the individual rights and freedoms are enshrined in a constitution, the Hong Kong Basic Law(formed based on the Common law of England), which outlines the system of governance of the Hong Kong Special Administrative Region, but which is subject to the interpretation of the Standing Committee of the National People's Congress (NPCSC).^[87][88]

The primary pillars of government are the Executive Council, the civil service, the Legislative Council, and the Judiciary. The Executive Council is headed by the Chief Executive who is elected by the Election Committee and then appointed by the Central People's Government.^[89][90] The civil service is a politically neutral body that implements policies and provides government services, where public servants are appointed based on meritocracy.^[26][91] The Legislative Council has 60 members, half of whom are directly elected by universal suffrage by permanent residents of Hong Kong according to five geographical constituencies. The other half, known as functional constituencies, are directly elected by a smaller electorate, which consists of corporate bodies and persons from various stipulated functional sectors. The entire council is headed by the President of the Legislative Council who serves as the speaker.^[92][93] Judges are appointed by the Chief Executive on the recommendation of an independent commission.^[21][94]

Government House is the official residence of the Chief Executive.

The implementation of the Basic Law, including how and when the universal suffrage promised therein is to be achieved, has been a major issue of political debate since the transfer of sovereignty. In 2002, the government's proposed anti-subversion bill pursuant to Article 23 of the Basic Law, which required the enactment of laws prohibiting acts of treason and subversion against the Chinese government, was met with fierce opposition, and eventually shelved.^[23][95][96] Debate between pro-Beijing groups, which tend to support the Executive branch, and the Pan-democracy camp characterises Hong Kong's political scene, with the latter supporting a faster pace of democratisation, and the principle of one man, one vote.^[97]

In 2004, the government failed to gain pan-democrat support to pass its so-called "district council model" for political reform.^[98] In 2009, the government reissued the proposals as the "Consultation Document on the Methods for Selecting the Chief Executive and for Forming the LegCo in 2012". The document proposed the enlargement of the Election Committee, Hong Kong's electoral college, from 800 members to 1,200 in 2012 and expansion of the legislature from 60 to 70 seats. The 10 new legislative seats would consist of five geographical constituency seats and five functional constituency seats, to be voted in by elected district council members from among themselves.^[99] The proposals were destined for rejection by pan-democrats once again, but a significant breakthrough occurred after the Central People's Government accepted a counter-proposal by the Democratic Party. In particular, the Pan-democracy camp was split when the proposal to directly elect five newly created functional seats was not acceptable to two constituent parties. The Democratic Party sided with the government for the first time since the handover and passed the proposals with a vote of 46–12.^[100]

Legal system and judiciary[link]

• 

  Statue of Themis on the Legislative Council Building.

• 

  The Court of Final Appeal in Central is the supreme court of Hong Kong.

Hong Kong's legal system is completely independent from the legal system of Mainland China. In contrast to mainland China's civil law system, Hong Kong continues to follow the English Common Law tradition established under British rule.^[101] Hong Kong's courts may refer to decisions rendered by courts of other common law jurisdictions as precedents,^[21][102] and judges from other common law jurisdictions are allowed to sit as non-permanent judges of the Court of Final Appeal.^[21][102]

Structurally, the court system consists of the Court of Final Appeal, the High Court, which is made up of the Court of Appeal and the Court of First Instance, and the District Court, which includes the Family Court.^[103] Other adjudicative bodies include the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labour Tribunal, the Small Claims Tribunal, and the Obscene Articles Tribunal.^[103] Justices of the Court of Final Appeal are appointed by Hong Kong's Chief Executive.^[21][102]

The Department of Justice is responsible for handling legal matters for the government. Its responsibilities include providing legal advice, criminal prosecution, civil representation, legal and policy drafting and reform, and international legal cooperation between different jurisdictions.^[101] Apart from prosecuting criminal cases, lawyers of the Department of Justice act on behalf of the government in all civil and administrative lawsuits against the government.^[101] As protector of the public interest, the department may apply for judicial reviews and may intervene in any cases involving the greater public interest.^[104] The Basic Law protects the Department of Justice from any interference by the government when exercising its control over criminal prosecution.^[105][106]

Human rights[link]

Hong Kong 1 July march with British Hong Kong flag.

Hong Kong's Basic law is based on the English law and so in general, Hong Kong is perceived to enjoy a high level of civil liberties.^[107] The Hong Kong government generally respect the human rights of the citizens, although core issues remain.^[108] There are concerns over the freedom of assembly which is restricted by the Public Order Ordinance. The police has been occasionally accused of using heavy-handed tactics towards protestors^[109] and questions are asked towards the extensive powers of the police.^[110] As to the right of privacy, covert surveillance remains the major concern.^[111] There is a lack of protection for gay men and lesbians due to the absence of a sexual orientation discrimination law, though there are currently no laws that criminalize homosexuality per se.^[112] There are also comments regarding a lack of protection for labour rights.^[108]

Internet censorship in Hong Kong operates under different principles and regulations than under the rest of China.^[113]

Administrative districts[link]