The surrender of Hong Kong to the Japanese in December 1941 started the collapse of British power in the Far East. Disproportionate to its small size, the colony became critical in Britain's battle to retain her Empire. Ironically, the threat to British sovereignty came not from Japan, but her own allies, America and China. New light is shed on the multi-faceted Anglo-American relationship, the significance of Britain's 'imperial mentality', and China's claim to the colony.