City expects to hear Tung's fate

HONG KONG - Unpopular Hong Kong leader Tung Chee-hwa hopes to announce his resignation before leaving for Beijing today, major newspapers reported.

Tung, 67, was expected to cite poor health and stress for his decision to quit after nearly eight years in the job and two years before his term ended.

But many in Hong Kong believe he was fired by Beijing, raising fears that China is increasingly meddling in Hong Kong's affairs despite promising a high degree of autonomy after the city's handover from Britain in 1997.

"He is our leader and the departure move should be made here," the South China Morning Post quoted one source as saying.

Tung will stay in Beijing until Saturday, when he is tipped to be elected vice-chairman of the country's top advisory body, a post often reserved for retiring officials.

The promotion would allow the unelected Chief Executive to make a graceful exit and save face for Beijing, which has often had to defend the former shipping tycoon it hand-picked to run the city after it returned to Chinese rule.

Neither Tung nor Chinese officials have confirmed reports about his resignation, which first appeared a week ago, triggering a frenzy of speculation.

The prolonged silence has frustrated many Hong Kong people and added to uncertainty in its financial markets.

Many analysts have speculated that an announcement may not be made until after Tung's new appointment, and say the long delay may mean Beijing has not agreed on details of the succession.

Some legal experts have warned that questions about the succession process could spark a constitutional crisis and a legal challenge in Hong Kong courts.

Democracy activists in Hong Kong accused Beijing of engineering Tung's resignation and vowed to mount a protest to denounce China's interference in the city's affairs.

"This whole thing is just blatant interference in Hong Kong affairs," said Jackie Hung, spokeswoman of the Civil Human Rights Front, which drew crowds of over half a million people to anti-government rallies in 2003 and 2004.

- REUTERS