Hong Kong's changing loyalties

HK's people have begun to trust Beijing's leaders more

By Damian Grammaticas BBC Hong Kong correspondent

Hong Kong Chief Executive Tung Chee-hwa begins his second term in office knowing that there has been a total reversal in the way Hong Kong's people view their leaders since the handover.

President Jiang has succeeded in projecting an image of leadership; Tung Chee-hwa hasn't

Sonny Lo, Hong Kong Transition Project

In 1997 people had high hopes for Mr Tung's administration. Nearly 70% approved of him then. Mainland China was distrusted and feared.

Now the situation is the opposite. In Hong Kong, approval ratings for President Jiang Zemin are at 60%. For Mr Tung they are half that.

Sonny Lo of the Hong Kong Transition Project says: "President Jiang has succeeded in projecting an image of leadership; Tung Chee-hwa hasn't. President Jiang can explain and promote his policies. Tung is no match for the mainland Chinese leaders."

Boom then bust

Perhaps the biggest reason is that Hong Kong's economy is in trouble. There is a feeling the territory has lost its way. In contrast, China is booming, and its leaders seem to know where they are heading.

Michael de Golyer, a political scientist in Hong Kong, believes that while the mainland is opening up and trying to tackle corruption, Hong Kong is perceived to be moving in the opposite direction.

Many blame Tung for rocketing unemployment

He says the decision to build a high-tec development called the Cyberport is a case in point.

"A very valuable piece of property was awarded, without bid and without tender, to the son of the richest man in Hong Kong, who also happens to be a close friend of the chief executive."

The Cyberport controversy added to the view that Mr Tung looks after his rich friends first.

Trying something new

But Tung Chee-hwa is making changes for his second term. Sworn in alongside him were 14 principal officials. They will be his right-hand men and women running the territory.

His new deputies are political appointees who will run government departments, and try to convince the public that Mr Tung is listening to their concerns.

You get the impression the government... want to be more Catholic than the Pope

China commentator Jasper Becker

There are some interesting choices. The new Environment Secretary, Sarah Liao, was an advisor to Beijing's bid for the 2008 Olympics. And heading Mr Tung's policy unit is Lau Siu-Kai, an opinion pollster who might just help him read the public mood more accurately.

One of the most sensitive issues they will face in the next five years is the question of progress towards democracy in Hong Kong. Currently less than half of the legislature is directly elected.

Recently China's leaders have poured cold water on the idea of greater democracy. But 65% of Hong Kong's people want to directly elect their chief executive.

Anson Chan, Mr Tung's deputy at the time of the handover, says democracy is a controversial and sensitive issue. But she believes "it is very much up to the people of Hong Kong to express their views".

'Big brother' fears

And others say Hong Kong's government should not worry too much about what Beijing thinks.

Jasper Becker, an author and journalist who writes on mainland Chinese affairs, says: "Hong Kong has gone out of its way, far more than it needed to, to anticipate the wishes of people in Beijing."

Jiang (right) wants Tung even closer

He believes Hong Kong has a lot of "wriggle room" to do things differently from the mainland. But he says "you get the impression the government is collaborating with hardliners in Beijing. That they want to be more Catholic than the Pope".

The mainland's obsession with establishing a Greater China by bringing Taiwan back into the fold partly accounts for President's Jiang's admonishment on Monday to Mr Tung 'to do better'.

Beijing badly wants the 'One country, two systems' formula used in Hong Kong to succeed. If it does it will help persuade Taiwan that unification with the mainland is a good idea.

The pressure is on Mr Tung to deliver. For both Beijing and Hong Kong there is a lot at stake in his second term.