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After the First Opium War (1839–42), Hong Kong became a British colony with the perpetual cession of Hong Kong Island, followed by Kowloon Peninsula in 1860 and a 99-year lease of the New Territories in 1898. After it was occupied by Japan in the Second World War (1941–45), the British resumed control until 30 June 1997.<br/><br/> As a result of negotiations between China and Britain, Hong Kong was transferred to the People's Republic of China under the 1984 Sino-British Joint Declaration. The territory became China's first provincial-level special administrative region with a high degree of autonomy on 1 July 1997 under the principle of one country, two systems.