BEIJING, March 2 -- Hong Kong's embattled chief executive, Tung Chee-hwa, who faithfully carried out China's wishes in the former British colony and then became a target of mass street protests, is preparing to resign at the end of a meeting of the Chinese legislature this month, two people close to his government said Wednesday.
Tung, 67, has told friends and senior aides about the decision, which appears to have been approved by the Chinese leadership. He is expected to cite poor health for his abrupt departure more than two years before his term as Hong Kong's first post-colonial governor is scheduled to end, the sources said.
Tung's resignation would mark the end of a tumultuous seven-year tenure during which the former shipping tycoon managed Hong Kong's return to Chinese rule and steadfastly defended China's refusal to expand direct elections in the territory. His exit would also represent a surprise retreat by the ruling Chinese Communist Party, which has repeatedly expressed support for Tung despite his lackluster and at times bumbling performance in office.
"If true, I think it's a significant departure from how Beijing handles senior personnel matters," said Fred Hu, managing director at Goldman Sachs in Hong Kong. "It would demonstrate that Beijing is trying to be more responsive to public sentiment, and it could instill confidence in the Hong Kong government."
Though chants for Tung to step down have become a standard chorus at pro-democracy demonstrations in Hong Kong, politicians and analysts described his possible departure as a deft political maneuver by the Chinese leadership that could ultimately weaken the territory's democratic opposition by depriving it of a favorite target. In recent years, Tung has struggled to govern while defending his handling of the SARS epidemic and decisions that have alienated many in the business community as well as contend with large-scale pro-democracy demonstrations.
By dumping Tung now, as public fervor for the democracy movement appears to have ebbed, China can rid itself of an appointee who has become a political liability while avoiding the impression it is giving in to the demands of protesters. At the same time, Tung's departure would allow China to pick his successor using an 800-member committee it controls and postpone a potentially divisive debate about demands to make the selection process more democratic, politicians and analysts said.
China last year ruled out direct elections to choose Hong Kong's next chief executive, but Tung promised to consider limited reforms, and lawmakers have been pressing a variety of changes aimed at diluting Beijing's control of the process.
Reaction to the reports of Tung's impending resignation was mixed. Democracy activists expressed satisfaction at the prospect of seeing an old nemesis go down but regretted that he had not been ousted in an election. "His departure came a bit too late. It is better than never, though," said Emily Lau, a lawmaker who chairs the pro-democracy Frontier party.
Others noted that China might have forced Tung to resign, violating the high degree of autonomy promised Hong Kong upon its return to Chinese rule in 1997. "The problem we have is we lack a democratic system," said Lee Wing-tat, chairman of the Democratic Party. "We do not need another puppet controlled by Beijing."
Government spokesmen declined to comment on the reports of Tung's departure, which Hong Kong's top newspapers splashed across their front pages Wednesday morning. But Tung suggested that an announcement would be coming soon.
"I know you are concerned about many questions. I will give an account of the matter at an appropriate time," he told reporters after arriving in Beijing for the annual sessions of China's parliament and its top advisory body, the Chinese People's Political Consultative Conference.
A person close to Tung's government, speaking on condition of anonymity, said Tung was expected to be named a vice chairman of the advisory body and would then formally resign as Hong Kong's chief executive. The body, which is scheduled to convene Thursday and adjourn March 12, is all but powerless in China's one-party political system, but Tung's appointment to a leadership position in it allows him to save face, the source said.
The source said China's leading candidate to replace Tung is his top deputy, Chief Secretary Donald Tsang, a career civil servant who enjoys greater popular support than his boss and demonstrated loyalty to Beijing by defending its refusal to allow universal suffrage in Hong Kong. Several influential industrialists have publicly endorsed his candidacy, but the source said his appointment was not certain.
Analysts said it was unclear whether Tung's successor would serve only the remainder of his current term, which ends in June 2007, or would be appointed to a new five-year term. Giving Tung's successor a full term would allow Beijing to postpone electoral reforms until 2010.
Allen Lee, a Hong Kong delegate to China's parliament, said a decision to replace Tung appeared to have been made recently. At a meeting in mid-January, he said, Chinese officials urged Hong Kong's parliamentary delegation to show stronger support for Tung.
"They've had enough with Tung and all the demonstrations," Lee said, referring to a march on July 1, 2003, prompted by Tung's unsuccessful attempt to enact a stringent internal security law favored by Beijing. "They don't want to see half a million people on the streets again demonstrating against the government."
Special correspondent K.C. Ng in Hong Kong contributed to this report.
