Hong Kong's history is interesting and also defined Hong Kong as an export-oriented region. This section therefore explores the most important historical developments in Hong Kong and discusses the effects on economic development. Towards Colonization Geographically, Hong Kong is made up of three major regions; a region annexed to China (New Territories and Kowloon), Hong Kong Island and Lantau (see figure ???). The soil is fertile and, thanks to the abundance of sea, Hong Kongers have always been able to harvest fish abundantly (Roberts, Ling and Bradshaw, 1992). However, the West valued Hong Kong for something else; its unique geographical position. Located at the mouth of the Pearl River Delta, Hong Kong has attracted interest ever since the West discovered Chinese goods. Throughout history, the Pearl River Delta has been the gateway for trade with the Western world, as there is little east of China except Japan, which for many decades has been unwilling to trade. So when the West, and in particular Great Britain, discovered tea, silk and Chinese porcelain, their ships set sail for the Pearl River. However, China has imposed stringent trade policies, which has complicated things for Western traders. After the Opium War (which will be discussed in more depth in section 2.2.1) Britain finally achieved its objectives; they could establish free trade ports and abolish many trade restrictions. Furthermore, they colonized Hong Kong, making it an imperial outpost for economic exchange (Roberts, Ling, & Bradshaw, 1992).Hong Kong: A Colony (1843-1997)With Hong Kong as a colony and fewer trade restrictions, Britain was able to expand its trade with China, which provided an important movement of paper during the Sino-Japanese War of 1937-1945. In D. Twitchett and J. Fairbank, The Cambridge History of China (pp. 609-722). London: Cambridge University Press. Wakeman, F. (1978). The cantonal trade and the opium war. In D. Twitchett and J. Fairbank, The Cambridge History of China (Vol. 10, pp. 163-212). London: Cambridge University Press.Wong, K. (1987). China's special economic zone experiment: An evaluation. Human Geography, 69 (1), 27-40. Yeung, Y. (2010). The Further Integration of the Pearl River Delta: A New Beginning of Reform. Environment and Urbanization Asia, 13-26.Yeung, Y., Lee, J., and kee, G. (2009). Special Economic Zones of China at 30. Eurasian Geography and Economy, 50(2), 222-240. Zeng, D. (2011). How Special Economic Zones and Industrial Clusters Drive China's Rapid Development Washington: World Bank: Policy Research Working Paper.