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Hong Kong's Tung Resigns

by Mary Swire, Tax-News.com, Hong Kong

11 March 2005

Following days of intense speculation after Hong Kong's leader Tung Chee-hwa was chosen to be a vice-chairman of the Chinese People's Political Consultative Conference, he announced his resignation yesterday in a speech which also contained an assessment of his period in power. However, the resignation will not be made formal until Saturday.

Mr Tung, who was appointed to his post after the Chinese takeover of Hong Kong in 1997, was seen leaving his office carrying suitcases on Wednesday afternoon. He will be replaced for the remaining two years of his term by Chief Secretary Donald Tsang Yam-kuen. Mr Tung will travel to Beijing for his CPPCC appointment on Saturday.

Although pro-Beijing officials are praising Mr Tung (a millionaire ex-businessman) for his achievements, he has not been a popular figure in Hong Kong, whereas Mr Tsang is seen as a man of outstanding talent with strong communication skills. However, Beijing's intention to allow him to serve out Tung's term without subjecting him to an election will annoy pro-democracy factions in Hong Kong. It was mainly Tung Chee-Hwa's refusal to fight Beijing for more democracy in Hong Kong that turned people against him.

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