Transcript for June 30, 1997: The British flag is lowered in Hong Kong

Here in Hong Kong where it is now Tuesday morning six and a half million people are just waking up in a Chinese city the British have gone. It was an extraordinary last day of British rule 156. Years after the British navy first came to this part of the Chinese coast. This most dynamic center and all of Asia has been returned to Chinese sovereignty. It was an incredibly dramatic day. Maybe even more so by seeing the Chinese military and Hong Kong. For the first time at first light this morning. Several thousand soldiers began crossing the frontier. Arriving in the outskirts. Of Hong Kong a strange sight for so many people here. It was a dramatic morning and evening because we saw the British in all their splendor here. For the last time. In the final hours when Hong Kong was still British it was very rich. The 28 and final governor who pushed so hard for greater democracy. Reminded the new Chinese rulers of their agreement. Now. Hong Kong people. Up to run Hong Kong. That is the promise. And bass. Is the unshakable destiny. And then the regime. Torrential. Rain. But on this occasion the likes of which the world will not see again it seemed only to heighten the drama. Speaking for the British monarchy which ruled 800 million people only fifty years ago the prince of Wales. The eyes of the world our own Hong Kong today. I wish you'll. A successful transition. And a prosperous and peaceful future. It had all the power and glory. That once was empire. And then over Hong Kong's harbor there was a massive fireworks display. In the final moments of British ruled after months of the most detailed negotiation about how these ceremonies would be equally shared. The most powerful symbols of change. No leaders of China has come to Hong Kong and a 156. Years from China's point of view. The long history of shame and occupation was finally over. The Chinese president promised the world and Hong Kong the zone which maintain a high degree of autonomy. That Hong Kong would be ruled by the people of Hong Kong. And then very quickly almost in haste it was over. Prince Charles the last governor with his family. Wind into the night on the Royal Yacht Britannia. It is said that before long Britannia will be sold or scrap. Like empire it is too much to maintain. On the eve of another century. Which. In the brand new convention center the Chinese premier Lee found. Who helped to crush the pro democracy movement in China swore in the Hong Kong's new chief executive. The secretary of state Madeleine Albright in the name of supporting democracy did not attend. On the balcony of Hong Kong's legislative council some of the most committed Hong Kong Democrats. Who lost their seats in the legislature at the whim of China held the first pro democracy demonstration. In the new home home. There have been two weeks of speculation as to how China would react in these first moments of sovereignty. They did not interfere. The arrival of Chinese troops here in Hong Kong is particularly symbolic they certainly express the new Chinese sovereignty. But they also represent the people's army that turned on the people. Some years ago and they demanded democracy there will actually be a smaller Chinese contingent here that the British had. But this is China now and the world is watching like a hawk to see how China behaves.

This transcript has been automatically generated and may not be 100% accurate.