Wednesday, March 02, 2005

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Hong Kong Leader Prepares to Resign

washingtonpost.com
Hong Kong Leader Prepares to Resign
By Philip P. Pan
Washington Post Foreign Service
Wednesday, March 2, 2005; 4:00 PM

BEIJING, March 2 -- Hong Kong's embattled chief executive, Tung Chee-hwa, who faithfully carried out China's wishes in the former British colony and became a target of mass street protests, is preparing to resign at the end of a meeting of the Chinese legislature this month, two people close to his government said Wednesday.

Tung, 67, has told friends and senior aides about the decision, which appears to have been approved by the Chinese leadership, and he is expected to cite poor health for his abrupt departure more than two years before his stint as Hong Kong's first post-colonial governor is scheduled to end, the sources said.

Tung's resignation would mark the end of a tumultuous seven-year tenure during which the former shipping tycoon managed Hong Kong's return to Chinese rule and steadfastly defended China's refusal to expand direct elections in the territory. It would also represent a surprise retreat by the ruling Chinese Communist Party, which has repeatedly expressed support for Tung despite his lackluster and at times bumbling performance in office.

"If true, I think it's a significant departure from how Beijing handles senior personnel matters," said Fred Hu, managing director at Goldman Sachs in Hong Kong. "It would demonstrate that Beijing is trying to be more responsive to public sentiment, and it could instill confidence in the Hong Kong government."

Although chants for Tung to step down have become a standard chorus at pro-democracy demonstrations in Hong Kong, politicians and analysts described his departure as a deft political maneuver by the Chinese leadership that could ultimately weaken the territory's democratic opposition by depriving it of a favorite target. In recent years, Tung has struggled to govern, been forced to defend his handling of the SARS epidemic and made decisions that have alienated many in the business community. He has also had to contend with large pro-democracy demonstrations.

By dumping Tung now, as public fervor for the democracy movement appears to have ebbed, China can rid itself of an appointee who has become a political liability while avoiding the impression it is giving in to the demands of protesters. At the same time, Tung's exit would allow China to pick his successor using an 800-member committee it controls and to postpone a potentially divisive debate about demands to make the selection process more democratic, politicians and analysts said.

China last year ruled out using direct elections to choose Hong Kong's next chief executive, but Tung promised to consider limited reforms. Lawmakers have been pressing a variety of changes aimed at diluting Beijing's control of the process.

Reaction to Tung's reported impending resignation was mixed. Democracy activists expressed satisfaction but said they regretted that he had not been ousted in an election. "His departure came a bit too late. It is better than never, though," said Emily Lau, the lawmaker who chairs the pro-democracy Frontier party.

Others noted that China might have forced Tung to resign, violating the high degree of autonomy promised Hong Kong upon its return to Chinese rule in 1997. "The problem we have is we lack a democratic system," said Lee Wing-tat, chairman of the Democratic Party. "We do not need another puppet controlled by Beijing."

Government spokesmen declined to comment on the reports of Tung's imminent departure, which Hong Kong's top newspapers splashed across their front pages Wednesday morning. But Tung suggested that an announcement would be coming soon.

"I know you are concerned about many questions. I will give an account of the matter at an appropriate time," he told reporters after arriving in Beijing for the annual sessions of China's parliament and its top advisory body, the Chinese People's Political Consultative Conference.

A person close to Tung's government, speaking on condition of anonymity, said Tung was expected to be named a vice-chairman of the advisory body and would formally resign as Hong Kong's chief executive afterward. The body, which is scheduled to convene Thursday and adjourn March 12, is all but powerless in China's one-party political system, but Tung's appointment to a leadership position allows him to save face, the source said.

The source said Beijing's leading candidate to replace Tung is his top deputy, Chief Secretary Donald Tsang, a career civil servant who enjoys greater popular support than his boss and demonstrated his loyalty to Beijing by defending its refusal to allow universal suffrage in Hong Kong. Several influential tycoons have publicly endorsed his candidacy, but the source said his appointment was not certain.

Analysts said it was also unclear whether Tung's successor would serve only the remainder of his current term, which ends in June 2007, or a new five-year term. Giving Tung's successor a full term would allow Beijing to postpone any electoral reforms until 2010.

Allen Lee, a Hong Kong delegate to China's parliament, said the decision to replace Tung appeared to have been made recently. At a meeting in mid-January, he said, mainland officials urged Hong Kong's parliamentary delegation to show stronger support for Tung.

"They've had enough with Tung and all the demonstrations," Lee said, referring to a march on July 1, 2003, prompted by Tung's unsuccessful attempt to enact a stringent internal-security law favored by Beijing. "They don't want to see half a million people on the streets again demonstrating against the government."

Special correspondent K.C. Ng in Hong Kong contributed to this report.
© 2005 The Washington Post Company
http://www.washingtonpost.com/wp-dyn/articles/A1365-2005Mar2.html

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