Tsang's Leadership Bid Rubber Stamped By Beijing

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

22 June 2005

After securing the support of the majority of the election committee last week, Beijing has formally rubber stamped Donald Tsang's selection as Hong Kong's new Chief Executive.

According to Chinese state news service Xinhua, a decree signed by Premier Wen Jiabao on Tuesday means that Tsang formally assumed the position of Hong Kong's Chief Executive on June 21 and will serve a term lasting until June 30, 2007 - effectively the remainder of predecessor Tung Chee-hwa's term. Tung stepped down earlier this year citing ill health.

"After the return of Hong Kong to the mother country Tsang has made a great contribution to safeguard the one country, two systems (policy) and the prosperity and stability of Hong Kong," Wen told China Central Television.

Tsang, formerly the territory's Financial Secretary, has inherited an economy in the midst of a strong rebound, and he has pledged to maintain Hong Kong's "simple low-tax regime." He also plans to review the existing structure of the executive branch with a view to improving efficiency. However, politically speaking, observers expect Tsang to broadly carry on where Tung left off, and his selection has done nothing to appease those agitating for greater democracy in the Special Administrative Region.

Nonetheless, Tsang was keen to paint himself in the role of Hong Kong's dutiful servant rather than as its master.

“I fully realise the challenges ahead as the chief executive. Without the support of the people of Hong Kong, without the support of the central people’s government, I would have nothing,” Tsang remarked.

“I realise that there are many inadequacies on my part. With modesty and with concrete action I’ll seek to consolidate my support and seek to bring together citizens holding different views in the overall interest of Hong Kong," he added.

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