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The report, entitled "Hong Kong 2007 Ten years on", was commissioned by John Swire & Sons, a British company group dedicated to business in Hong Kong and completed recently by James Forder, fellow and tutor in economics at Balliol College, Oxford.

In the summary of the report, Forder concludes, "For many businesses, Hong Kong is now a more attractive place than it was when under British control."

The reason he gives "is that the old business conditions have largely been retained, but the Hong Kong economy is now better integrated with the Chinese, and the rapid development of that country makes for a huge additional opportunity. The 'One country, Two systems' approach to maintaining the capitalist system in HongKong has been almost completely successful. Despite the reversion to Chinese sovereignty, in Hong Kong it is business as usual."

Forder believes that the rapid growth of China and the stance of Chinese policies toward Hong Kong have actually increased the business opportunities there.

"The region of China around Hong Kong -- the Pearl River Delta -- is growing extremely rapidly. Even by the standards of recent Chinese economic performance, it is outstandingly successful. This success is in part due to the proximity of Hong Kong, but in any case, it is a success from which Hong Kong benefits. In addition, Chinese policy, particularly in the form of the 'Closer Economic Partnership Arrangement' (CEPA), allows Hong Kong privileged access to the Chinese economy, thereby increasing the opportunities further."

It is because of these, and other factors, said Forder, that Hong Kong is quite properly regarded as "the gateway" to China. But what needs to be understood about this expression is that if it ever had the connotation of merely meaning Hong Kong was a convenient and well facilitated port, such a simple conception now points to only a minuscule part of the truth. "It is the integration of the Hong Kong economy with the Chinese, combined with its preservation of independence in important constitutional and policy areas, that is the crucial consideration."

"There is a particular capability in Hong Kong, and that capability is, in effect, the capability of organizing business in China on behalf of the non-Chinese. In the light of the prospects in China, that capability is extremely valuable."

The economist urged all interested governments to understand the economic arrangements and the opportunities in Hong Kong.

Forder points out two things, which are remarkable about China's policy of "One country, Two systems."

One is that the idea of "two systems" was allowed to be so far reaching. As it is put in the Joint Declaration, Hong Kong enjoys "a high degree of autonomy, except in foreign and defense affairs." It is hard to think of earlier precedents in other countries, where national economic or immigration policy would be excluded from the list of centralized powers. But in China, regarding Hong Kong, they certainly are. For present purposes, it is convenient to divide aspects of the "One country, Two systems" arrangement into directly economic matters, and political ones. In both areas, the Joint Declaration and the Basic Law give Hong Konga striking, and indeed astonishing, degree of autonomy.

The second remarkable fact, according to him, is simply that the provisions in question have been so near perfectly followed, in letter and spirit, since 1997, the result is Hong Kong is very much in business as usual, and with the bonus of the opportunities created by the opening up of the Chinese economy.

"The remarkable degree of independence of governance enjoyed by Hong Kong is certainly not limited to economic policy. The political freedoms also contribute significantly to Hong Kong's economic capacity, and in particular to the possibilities for companies located or represented in Hong Kong to take advantage of its position in southern China and the commercial opportunities that creates," according to the report.

Turning to the question of actual economic policy outcomes since 1997, the report cited evidence of how much practical independence Hong Kong has maintained in economic matters. The Heritage Foundation said in its 2006 report "Hong Kong remains a model of economic freedom", and ranked it at the top of 157 countries that were given a rating. In fact, the Heritage Foundation has rated Hong Kong's economy as the freest, every year since 1995.

Similarly, the Fraser Institute, has rated Hong Kong's economy as the freest in each of its last six assessments. And thirdly, in December 2005, fDi Magazine, of the Financial Times, with a special focus on foreign direct investment, voted Hong Kong as the "Asian city of the future", describing it as "a member of the elite group of truly world-class cities on a par with London, New York and Paris" and as having "an alluring pitch that will ensure Hong Kong's spot near the top of the fDi league tables for many years to come."

The report concluded that the policy of "One country, Two systems," can be regarded as "a striking success" economically. And it is a testament to this that the sixth Ministerial Meeting of the World Trade Organization was held in Hong Kong in December 2005.

"We believe the report clearly demonstrates Hong Kong's unique position, both as the international finance center of Asia and at the same time as a Chinese city with a strong and distinctive British culture and administration heritage," said James Hughes-Hallett, chairman of John Swire & Sons. He added, "This suigeneris status reaffirms Hong Kong's role as the platform for British business in China and the necessity, to preempt James Forder's conclusion, 'that the unique and surprising things that Hong Kong continues to offer should be properly understood.'"