FOCUS: H.K. leadership change paves way for Beijing's new favorite

Asian Economic News, March 7, 2005

HONG KONG, March 2 Kyodo

The widely rumored early departure of Hong Kong's Chief Executive Tung Chee-hwa will pave the way for Beijing's new favorite to head the territory, observers said Wednesday.

The unpopular Tung is rumored to have tendered his resignation to Beijing and is expected to step down within days, local media reported Wednesday, quoting sources in the capital.

Chief Secretary for Administration Donald Tsang, the No. 2 man who has been tipped as a candidate to become the next chief executive, is reportedly expected to replace Tung immediately after his resignation as spelt out in the Basic Law, Hong Kong's constitution.

An election must then take place within six months, according to the Basic Law.

However, legal experts are divided over whether the new chief will merely serve out the remaining two years of Tung's term until July 2007 or whether he will be elected to a fresh five-year term until 2010.

The latter case would effectively defer an ongoing debate in the territory over introducing greater democracy in the election system in 2007.

''My understanding is the new chief will serve a whole five-year term although the Basic Law has not specified (so),'' said Martin Lee, a prominent advocate for democracy in Hong Kong and founder of the Democratic Party.

''It would definitely delay the democratization of Hong Kong,'' said Lee, who is a legislator and one of the drafters of the Basic Law.

Lee added that holding the election within six months of Tung's departure would also undercut the chances of other pro-Beijing people interested in running for the top job since they will not have enough time to prepare for the race.

Ivoy Choy, a political scientist with Chinese University, said the election of the next chief for a five-year term will dilute the public's imminent demand for political reforms until 2010.

''For Beijing, it's safer this way as it would postpone the contention for greater democracy. But it's certainly detrimental for the democratization of Hong Kong,'' he said.

So far, no official confirmation has been given by Beijing or Hong Kong authorities over Tung's resignation.

Tung, who flew into Beijing on Wednesday afternoon for the annual sessions of the Standing Committee of the Chinese People's Political Consultative Conference and the National People's Congress, told reporters that he will disclose the details when the time is appropriate.

Tsang, 60, a veteran civil servant since the colonial era, is said to be one of Beijing's favorite candidates.

He has enjoyed a higher popularity than Tung among the public but has recently drawn criticism over alleged collusion with businessmen.

Last month Macao-based casino tycoon Stanley Ho, who is a deputy to the National People's Congress, publicly endorsed Tsang as the right candidate for the next chief executive.

Known for his high-handed approach in spearheading government politics, Tsang has stood firm on a decision to tender a HK$40 billion (around $5.1 billion) integrated project of art, culture and entertainment to a single bidder.

Only three contenders, all property developers, were short listed. If awarded, the developer will have the largest land reserve in the city after only the government.

Tsang is also being accused of collusion for offering the Pacific Century Group owned by Richard Li, son of tycoon Li Ka-shing, the Cyberport project, a hi-tech development hub in 2000 without a tendering process.

Tsang has scored above 60 percent in a long-term popularity poll conducted by Hong Kong University, compared to Tung's rating which has been lingering below 50 percent over the last two years.

On Monday, the Standing Committee of the Chinese People's Political Consultative Conference in Beijing approved a proposal by the central government to enlist Tung as a new member.

The move was widely seen as an attempt to sideline Tung and pave the way for his early resignation as Hong Kong's chief.

On March 12, Tung is expected to be elected as vice chairman of the conference's Standing Committee -- traditionally an appointment to honor retired officials who are no longer in power.

Handpicked by Beijing under former Chinese President Jiang Zemin's rule, Tung, 69, the eldest son of pro-Beijing shipping magnet C.Y. Tung, had little political experience before he took up the office.

Tung reportedly requested to step down on a number of occasions, including after a massive protest by thousands of people demanding universal suffrage for its chief executive in 2007 and the Legislative Council, the lawmaking body, in 2008.

But Beijing refused to accept his resignation, apparently over fears it would be interpreted as admitting that the appointment assigned by Jiang was a mistake, according to previous press reports.

Last December, Chinese President Hu Jintao urged Tung to ''look into his shortcomings,'' which rekindled rumors that Beijing wanted to replace him.

In April 2003, Beijing flatly ruled out the introduction of a direct election system for the city's chief executive in 2007. But the city is still rife with demands for the system and for improvements to the election methods.