HONG KONG today begins a new era as a Special Administrative Region of China. In doing so it has the good wishes of the departing British and reassurances from the Chinese President, Mr Jiang Zemin, of its rights and freedoms under the law and of movement "to a democratic system that suits Hong Kong's reality".
The end of 156 years of imperial rule came at midnight (Hong Kong time) as the Union Jack was lowered in a ceremony presided over by President Jiang and the Prince of Wales, and the Red Flag of China with five gold stars was raised in its stead.
This morning at dawn 4,000 troops of the People's Liberation Army poured into the territory by land, sea and air to occupy the barracks vacated by the British.
President Jiang, the first Chinese head of state to set foot in Hong Kong in a century and a half, met the British Prime Minister, Mr Tony Blair, before the handover and invited him to visit Beijing to mark a new beginning in Sino-British relations.
In remarks during the handover ceremony Mr Jiang promised to adhere faithfully to the one country-two systems formula, under which Hong Kong will retain its capitalist ways for 50 years. Hong Kong residents shall enjoy various rights and freedoms according to law," he said. "It shall gradually develop a democratic system that suits Hong Kong reality."
Shortly afterwards, in the early hours of today, Hong Kong's hand-picked provisional legislature was sworn in, as were the judiciary and Hong Kong's new chief executive, Mr Tung Cheehwa, a shipping tycoon. All are answerable to a Communist government.
With his right hand raised in the air, Mr Tung promised a better and brighter future for Hong Kong under the novel concept by which it retained great autonomy.
"After 156 years of separation, Hong Kong and China are whole again. This is a solemn, stately and proud moment. We are here today to announce to the world, in our language, that Hong Kong has entered a new era," Mr Tung said.
The new 60-member legislature was sworn in at the Hong Kong Convention Centre, where the handover ceremony had just taken place. After repairing to the legislature offices, it immediately passed an omnibus law activating several legislative amendments including curbs on demonstrations.
Democracy activists demonstrated outside the legislature in protest at the dissolution of the partially elected assembly to which they belonged. As power was transferred from Britain to China, the Democratic Party leader, Mr Martin Lee, addressing the crowd from the balcony, said he hoped "our country China" would become a truly great nation which respected human rights. "Long live democracy," he cried.
The day was an emotional rollercoaster for the outgoing governor, Mr Chris Patten. He wept after a final address at a British farewell ceremony during which he said "Hong Kong people are to run Hong Kong - that is the promise and that is the unshakeable destiny."
Less than an hour after the Union Flag came down, Mr Patten and the Prince of Wales, who had represented Queen Elizabeth, sailed off in the royal yacht, Britaiinia - another vestige of imperial splendour which has the end of its life in sight. As they did so the Red Flag was already flying over the Prince of Wales barracks, the British army headquarters until yesterday.
An advance party of 509 lightly-armed Chinese troops, standing in three rows on the back of open trucks, crossed into Hong Kong from Shenzhen, the nearest Chinese city, at 9 p.m.
Precisely at midnight thousands of Hong Kong police on crowd control duty removed the royal insignia and replaced them on their caps and shoulder straps with the simple initials "HKP" for Hong Kong Police.