In the months approaching China's resumption of sovereignty over Hong Kong on July 1, 1997, policy analysts are trying to assess how the territory will fare under Chinese rule. The answer is important to U.S. interests because of the enormous U.S. economic presence in Hong Kong; because any adverse developments in Hong Kong are likely to affect U.S.-China relations; and because China's promise to give Hong Kong a high degree of autonomy under the "one-China, two-systems" policy has major implications for Taiwan. But given the political situation, the American ability to affect the course of events in Hong Kong seems marginal unless the U.S. decides to confront Beijing more directly. Developments in U.S.-China relations in 1994-1995 suggest Washington might be hesitant to do so.

This study is an historical and institutional analysis of The Lutheran Theological Seminary (LTS) in Hong Kong. The study first traces the seminary's theological and missiological roots and its history from 1913 to 1948, from its founding in Hubei Province, China to its move to Hong Kong because of civil war. Next, it describes major events of the early years in Hong Kong and the factors which contributed to an institutional crisis in the late 1960's. The study then analyzes the modern development of the institution, specifically the years 1971 to 1993. During this period several regional church groups joined together to create a collaborative educational effort through LTS, the school gained regional accreditation, expanded the ranks of its Chinese faculty, developed Asian financial support, and constructed a new campus. The modern development of the institution cannot be understood apart from a comprehension of the twenty-two year administration of Andrew Hsiao, the first Chinese president of the school. A chapter is therefore included on Andrew Hsiao's personal and academic background, the distinctives of his administration, and the strengths and weaknesses of his presidency. A current profile of the school is provided including its purposes, theology, organizational structure, faculty, student body, …