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The final handover ceremony at the Convention Centre

England have

Hong Kong has been handed back to the Chinese authorities - ending more than 50 years of British control.

The British flag was lowered over Government house - home to the last Governor Chris Patten for the past five years - at midnight last night.

The flag was presented to Mr Patten who was then driven off in his official Rolls Royce, before the car was handed over to Tung Chee-hwa, the territory's Chief Executive.

In his farewell speech, Mr Patten said: "The story of this great city is about the years before this night and the years of success that will surely follow it."

A huge fireworks display lit up Victoria Harbour at 2000 local time. One hour later, 4,000 guests sat down to a banquet in the Convention Centre on the harbour front, while 509 Chinese troops crossed the land border into Hong Kong.

Among the guests for the final handover ceremony at the Convention Centre were the Prince of Wales, Prime Minister Tony Blair, Foreign Secretary Robin Cook and Chris Patten. Chinese dignitaries included President Jiang Zemin, Prime Minister Lee Peng, Foreign Minister Qian Qichen and military leader General Zhang Wannian.

In Beijing the ceremony was watched on giant screens erected in Tiananmen Square.

At the stroke of midnight, the red digits of the countdown clock turned to zero and the handpicked crowd roared its approval.

Shortly afterwards, Prince Charles and Mr Patten boarded the Royal Yacht Britannia and waved a final farewell to the strains of Rule Britannia and Land of Hope and Glory.

Just half-an-hour after the handover, there was a demonstration by the Hong Kong Democratic Party outside the Legislative Council building - but it did not delay the inauguration of the new Special Administrative Region government.

Tung Chee-hwa was sworn in as Hong Kong's new leader.

"This is a momentous and historic day...Hong Kong and China are whole again," said Mr Tung.

But he promised, "We value this empowerment and we will exercise our powers prudently and responsibly."

Yasser Arafat makes a triumphant return

Dressed in his usual military fatigues and keffiyeh headdress, the PLO leader raised a victory salute as he crossed the border at Rafah from the Sinai Desert in Egypt.

Just before taking a helicopter from Cairo with the Egyptian President, Hosni Mubarak, Mr Arafat said: "Now I am returning to the first free Palestinian lands. You have to imagine how it is moving my heart, my feelings."

Surrounded by green-bereted Palestinian guards, he was rushed through the waiting crowds into a bullet-proof, black Mercedes to make the 20-mile journey north to a rally in Gaza City.

Death threats and threatening graffiti by Israeli settlers at Kfar Dorom forced a route change.

But Mr Arafat was still able to see for the first time the problems - from garbage-strewn streets to Israeli enclaves like Gush Qataf - which he will have to address as ruler of the fledgling Palestinian state.

The PLO leader's visit comes a month after the Israeli-PLO Cairo Agreement created a fragile self-rule for Palestinians in Gaza and Jericho in the West Bank.

The Gaza Strip and the West Bank were among the areas of land seized by the Israelis in the Six Day War of 1967.

In Gaza City Mr Arafat gave a triumphant address from the balcony of the former headquarters of the Israeli military governor to a Parliament Square packed with 200,000 Palestinians.

His differences with other Palestinian leaders appeared to dissolve as Mr Arafat spoke of his interest in Jerusalem.

The itinerary for Mr Arafat's three-day visit includes Jericho but not Jerusalem, according to his adviser Nabil Shaath.

Demonstrations against Mr Arafat's presence are taking place in Jerusalem and elsewhere.

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