Two Hong Kong Officials Resign in Crisis

By DIRK BEVERIDGE
The Associated Press
Wednesday, July 16, 2003; 11:46 AM

HONG KONG - Hong Kong's embattled leader announced the resignations of his security chief and financial secretary Wednesday as the government struggled with its biggest political crisis since Britain returned the territory to China in 1997.

Chief Executive Tung Chee-hwa did not link either resignation to recent events that critics say seriously undermine his credibility: a conflict-of-interest scandal and the government's botched attempt to pass an anti-subversion bill over the objections of critics who said it would erode civil liberties.

But the departures followed calls by opposition lawmakers for Tung - or at least some of his top officials - to step down and growing demands among ordinary Hong Kongers for government accountability and democracy.

The anti-subversion legislation that Tung's security chief, Regina Ip, tried to push through the legislature brought a half-million protesters to Hong Kong's streets July 1 and prompted a humbled government first to water down the bill, then to delay plans to pass it.

Opposition lawmakers said Ip and Tung had failed to listen to public concerns about legislation that critics called a threat to the territory's freedoms of expression and assembly.

Ip's was the first resignation announced Wednesday.

Hours later, Tung announced the resignation of Financial Secretary Antony Leung. It had been revealed earlier Wednesday that prosecutors were pondering criminal charges against Leung for buying a luxury car just weeks before he raised auto taxes.

Ip said she resigned "entirely due to personal reasons" but also expressed regrets that the anti-subversion bill was "not completed as scheduled" despite her persistent efforts.

The legislation originally was scheduled to be passed July 9. Tung has shelved it for now, but insists it will be passed as required by Hong Kong's mini-constitution.

Tung said Ip had proposed stepping down on June 25 for personal reasons and that he argued she should stay, suggesting she take leave "to get some rest and sort out her personal matters before making up her mind."

"But regrettably I could not change her decision," Tung said, not mentioning what the personal reasons might be.

Lawmaker Albert Chan, a persistent government critic, said that if Ip had offered to quit last month then Tung should have said so at the time.

"Why did Tung delay making an announcement and hide it from the public for three weeks?" Chan said. "This is a very serious problem. In handling Ip's resignation, Tung once again demonstrated his hesitant style and incompetence."

Ever since the handover, Hong Kong has been constitutionally required to outlaw subversion in a national security bill.

But critics say the government went way too far with a measure that prohibited sedition, subversion, treason and other crimes against the state - with life in prison for some offenses. They complained that the measure is vague about what exactly would constitute a crime and could end up suppressing free speech and assembly.

Independent legislator Margaret Ng said that she has known Ip for many years and described her as "very diligent and strong-minded."

"Unfortunately, her style was completely wrong for this particular task and so it seems that it is inevitable that she would have to go," Ng said. "The fundamental problem is not just one or two people, it's the whole government's attitude of what to do and how to legislate, what to legislate."

Ip was one of the least popular members of Tung's inner circle, and derided by the unflattering nickname "Broomhead" by critics who even took aim at her headline-grabbing hair perms.

Leung issued a short statement that did not mention the auto scandal but said he had carried out his duties with "a clear conscience at all times."

Leung had been under fire for buying a new Lexus in January before raising auto taxes in March, saving himself more than $24,000. He said it was an oversight and sought to make amends by donating money to charity.

Leung's resignation was effective immediately, while Ip was staying on until July 25.

Leung, a former investment banker, had been seen as a high-wire act as he made headlines on a variety of fronts, including his marriage last year to the Chinese Olympic gold medalist diver Fu Mingxia.