Tsang Declares ‘New Beginning’ For Hong Kong

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

14 October 2005

In his first major policy speech to the Legislative Council on Wednesday, Hong Kong's newly-appointed Chief Executive, Donald Tsang outlined a number of proposals designed to make the way the territory is governed more efficient, although he stopped short of guaranteeing full democracy, and promised little in the way of incentives to boost the economy and finance industry.

During his 90 minute address, which repeatedly called for greater "harmony" in government, Tsang made it clear that he wanted to take a different road in terms of government from his predecessor, Tung Chee-hwa, declaring that Hong Kong stands on the brink of "a new beginning".

However, Tsang skirted around the sensitive issue of democracy, giving no guarantees that universal suffrage will be introduced in the territory any time soon. Instead, the chief executive indicated that the issue will be dealt with in a report to be issued "later".

Tsang's lack of concrete proposals to boost the economy also disappointed the financial and business community, although he confirmed that the complexion of the Executive Council will be changed to include several prominent figures from the financial and legal world in an attempt to further the interests of Hong Kong as a business, trade and financial hub at government level.

This will mean that the number of 'unofficial', or non-governmental, members sitting on the Executive Council will be increased and only three top policy secretaries - administration, justice and finance - will remain as official members of the Council. This is in contrast to Tsang's predecessor, Tung Chee-hwa, who appointed all 14 policy secretaries to the Council with seven unofficial members.

In another departure from the Tung regime, Tsang announced proposals for ministers to report to the chief secretary and the financial secretary rather than to the chief executive, reversing a change brought about by Tung in 2002.

However, Tsang ruled out the possibility of power sharing between the executive and the legislature, emphasising that the administration was an "executive-led government".

"The Basic Law does not mention power-sharing," he told reporters after delivering his address.

"The Basic Law wants the executive and the legislature to take into account public opinion and co-operate; and provide monitoring as appropriate. This should be the right way," he added.

"The political system cannot come to a standstill. In light of the ultimate goal of universal suffrage in the Basic Law, the governor and the civil service-led colonial system cannot remain unchanged forever," he stated.

Under other measures announced by Tsang, it will become easier for mainland and overseas workers to reside in Hong Kong and seek work in order to attract skilled workers in greater numbers. There will also be greater scope for the use of the Chinese currency, the yuan in Hong Kong.

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