Protests flout China's might. Handover goes smoothly until Hong Kong's midnight hour

For the fledgling Special Administrative Region the organised protests in three separate parts of the city were a severe test of nerve and diplomatic handling.

Both the world's media and the new Chinese political masters, led by President Jiang Zemin, were on hand, and troops of the Peoples Liberation Army stood by.

In the most serious challenge to the new order, leaders of the Hong Kong Democratic Party forced their way to the balcony of the legislative building to read a manifesto demanding immediate democracy, and protesting against the Beijing-appointed provisional legislature which will govern Hong Kong for at least the next 11 months.

The protest, delivered by Democratic Party leader Martin Lee, claimed the new governing body, composed of an inner circle of pro-China members of the Hong Kong tycoon elite, was unconstitutional and illegal.

The interim government has been described by opponents as more of a corporate takeover than a legitimate transfer of power from the legislative council elected in the final 18 months of British colonial rule.

Even before the Special Administrative Region had time to swear in its interim government, and as the Royal Yacht Britannia had only just sailed out of Hong Kong harbour to take the Prince of Wales and the last British Governor, Mr Chris Patten, to Manila with the rest of the British delegation, the Democratic Party demonstrators gained access to the building where the government will sit.

A compromise was attempted by police to allow them to read their manifesto from the entrance. But Dr Lee led his supporters inside and addressed a crowd gathering outside from a first-floor balcony.

It was shortly after midnight local time when he told them: ''We will stand united with you, our people, to bring an early end to this provisional legislature. If there is no democracy there is no rule of law and there are no freedoms and our human rights will not be observed. We appeal in the eyes of the world, and of the Chinese leadership, for more democracy.''

The potentially explosive confrontation was allowed by Hong Kong police to break up peacefully without further incident, as the Democratic Party continued a rally from a stage set up outside the legislative building.

Chinese units, moving 5000 troops over the old mainland border from Shenzhen, did not arrive in the city in time to make any intervention, and there was no appearance at the protest from other troops who

had been allowed to enter in the week before the midnight handover.

In another flashpoint, members of the April 5th Action Group scuffled with police who prevented them from entering the convention centre where the handover ceremony was taking place before Prince Charles and President Zemin.

About 15 protesters flying black versions of the Chinese Republic flag were surrounded and contained without arrests. Another protest was held by the pro-democracy Hong Kong People's Coalition for an Alternative Handover.

Inside the convention centre, President Zemin, in his first speech in Hong Kong, endorsed the return after 156 years of six million Hong Kong Chinese ''who have returned to the embrace of the motherland''. He promised a re-unified China which would operate two political and administrative systems which offered a ''high degree of autonomy'' to Hong Kong.

He said: ''The Special Administrative Region will develop a democratic system that suits Hong Kong's status.'' This qualified commitment, along with the disclosure yesterday of elections to be held next May to vote in a successor to the interim government, was not enough of a guarantee to win the trust which the Democrats insist will only follow the announcement of full and free elections.

Prime Minister Tony Blair gave no hint of further undertakings from the Chinese leadership after his summit meeting with President Zemin earlier in the evening. He said only that he hoped for a new beginning for improved Sino-British relations.

For the new order the protests were a planned provocation they were happy to survive without serious incident.

Another protest march has been called for today by the April 5th Action Group. The real fear will be over the consequences for these challenges after the 8000 journalists covering the handover have departed, and after the Chinese soldiers have moved in to Hong Kong to establish themselves permanently to take up an official security role.