Hong Kong's proposed new $16 billion airport is more than a spectacular engineering project. Unveiled in 1989, the plan soon turned into a test of wills between London and Beijing. Since Britain had not previously consulted China, Beijing refused to give its approval, which was necessary for financing, and the project stalled. At issue: who runs Hong Kong before 1997, when China takes over?

Last week the answer became clearer. Britain and China signed an agreement in which Beijing approved the project, but in turn London must consult Beijing on all major aspects of the airport's development. Beyond that, China gained a voice in running Hong Kong.