Hong Kong: `We Are Moving Into A Major Confrontation'

Just a few weeks ago, Britain and China seemed well on the way to a relatively painless handover of Hong Kong in 1997. The two sides had finally signed off on funding for the territory's new $20 billion airport and seemed likely to work out other contentious issues. But with the surprisingly big victory of Martin C.M. Lee's crusading Democratic Party in the Sept. 18 elections for Hong Kong's Legislative Council (LegCo), all bets are off. "We are moving into a major confrontation," says John Walden, a former senior Hong Kong official.

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