Hong Kong, China politics has entered a kinder, gentler phase. A string of much-delayed agreements on transitional issues have been clinched by Britain and China, and in September, 1995, the colony will have its first almost wholly-democratic elections for the Legislative Council (LegCo), the colony's parliament. This article focuses on major disputes between Great Britain and China that appear to be over with the reaching of a number of key deals, as of September 1995. The view from Government House is that the current political year, LegCo broke for the summer recess at the end of July, 1995, has been a good one. After a period of frosty Sino-British relations, aggravated by governor Chris Patten's efforts to speed up the pace of democratic reform in the face of Beijing's opposition, a number of agreements have been reached between the two powers and only two big issues, the questions of right of abode and port development, remain outstanding. The court will play an integral role in ensuring Hong Kong, China's continued rule of law, which is regarded as a cornerstone of the economy and vital for the many foreign investors and businessmen who put faith and dollars into the system. The deal was roundly welcomed by overseas businessmen and lawyers but attacked by human rights groups and local democratic politicians. Another contentious point was the definition of acts of state over which the court has no jurisdiction. The bill uses the formula from the Basic Law, the mini constitution drawn up for post-1997 Hong Kong, which refers to "acts of state such as defense and foreign affairs," a sufficiently vague definition that will allow Beijing to contradict the court's rulings on a number of issues.