Watch CBSN Live

Hong Kong's Leader Resigns

Hong Kong's leader said he asked to resign Thursday because of failing health, and he denied that China was pushing him out because of poor performance during his eight years in office — a time of economic woes, massive protests and calls for greater democracy.

After ignoring 10 days of rumors that he was quitting, Tung Chee-hwa called a news conference and said that he wanted to step down because of fatigue and other unspecified health problems that began late last year. He said he had trouble standing for long periods of time.

"If I continue as chief executive, I won't be able to handle it," he said.

Tung said that he tendered his resignation with China's leadership an hour before his announcement and that he hoped China would accept it "as soon as possible."

He denied wide speculation that China pushed him out. China has "repeatedly affirmed the work that I and my colleagues and the government has done. That (forced resignation) is not the case at all," he said.

Tung's exit triggered Hong Kong's first leadership change since it returned to Chinese rule in 1997 under a "one country, two systems" formula, designed to give the territory a wide degree of autonomy.

James Sung, a political analyst at City University of Hong Kong, said he believed Beijing dumped Tung because the Communist leadership lost faith in him.

"Beijing has been tightening political freedoms to make sure Hong Kong is not in troubled waters," Sung said. "But with Tung's political skills and judgment, he is clearly not up for the job."

The global financial capital has become increasingly politicized. The last two years of Tung's rule have seen the territory's largest-ever street protests for greater democracy and less Chinese control — displays that alarmed China.

The 67-year-old Tung was a shipping tycoon with little political experience when he was picked to be Hong Kong's first chief executive. He was elected by an 800-person election committee, dominated by people partial to Beijing.

He has struggled to raise his public approval ratings. Many believe that his administration bungled two major crises: the 1997 Asian financial meltdown and the 2003 outbreak of SARS, or severe acute respiratory syndrome. His critics say he's too close to big business and insensitive to the hardships of the common people.

Joseph Cheng, a political scientist at City University of Hong Kong, also thought that China believed it was time for Tung to go.

"If China wanted him to stay, he would have stayed," Cheng said.

Pro-democracy lawmaker Albert Ho was angry about the way Tung allowed the resignation rumors to drag on, and he believed Tung tendered his resignation to Beijing long before telling the public.

"It seems that the chief executive is only holding himself responsible to the (Chinese) central government and not to the Hong Kong people."

Tung's position would be temporarily filled by the No. 2 ranking official, Donald Tsang — a popular bow tie-wearing career civil servant who was educated at Harvard and received a knighthood for his service during British colonial rule.

Tsang might be Beijing's idea of a complete package: a man known to follow orders without wavering and a battle-hardened civil servant who can run a bureaucracy.

"He has the mentality of a loyal servant. He just follows his boss. ... It's just that his bosses keep changing," said Ma Ngok, a political scientist at Hong Kong's University of Science and Technology, said,

The 800-member election committee would have to elect another chief executive within six months, and many believe that Tsang would get the job if he does well.

But a divisive constitutional controversy seems to be brewing over how long the next elected chief executive will serve.

Some lawmakers and legal experts have argued that the Basic Law, Hong Kong's mini constitution, clearly says that the next elected chief executive should get a new five-year term, rather than serve out the two-year remainder of Tung's term. Beijing — which favors the two-year option — might have to provide a constitutional interpretation.

It's possible that the jockeying for power that Tung struggled to control might intensify if the next elected leader only gets a two-year term. The leader's challengers in the next scheduled election in 2007 might try to undercut him and thwart any progress that would make him look good, analysts say.

"Other contenders for the chief executive post will see Tsang as a main competitor," Sung said. "We can expect peace only for a month or two until around June when the election takes place. At that time, there will also be a lot of noise in the society."