"Hong Kong's strength lies in its respect for the rule of law and fundamental rights and freedoms,'' Norman Lyle, chairman of the British Chamber of Commerce in Hong Kong, wrote in a recent letter to Ip. Anything that erodes freedom, he said, "will make Hong Kong a much less favorable location for international business to be based simply because it will remove its regional and national uniqueness.''

Here's a less diplomatic way of putting Lyle's implicit threat: If Hong Kong's freedoms are going to be no greater than those on the mainland, why shouldn't companies doing business in China just move their operations to Shanghai, Beijing, Guangzhou or other mainland centers?