<http://online.wsj.com/article_print/0,,SB111023271420072654,00.html>

The Wall Street Journal


 March 8, 2005

 REVIEW & OUTLOOK



Time for an Announcement
March 8, 2005

Nothing better encapsulates the shortcomings in Chief Executive Tung Chee
Hwa's style of governing Hong Kong than the manner of his going. More than
a week after news of his departure first leaked out, there is still no
official announcement of what has long since become an open secret in the
former British colony, and around the world.

Mr. Tung has been busy holding meetings behind closed doors. First with the
Chinese leaders who decided upon his departure and then with his deputy,
Donald Tsang, who is widely expected to step into his shoes on at least an
interim basis. Left out of all this are the people of Hong Kong, who are
being kept in the dark about who is meant to be ruling them (or at least
who will be the top administrator; it's clear who rules now). Mr. Tung has
only said that all must wait until an "appropriate time" to find out more
about reports of his departure, which he has repeatedly refused to deny.

That is at the very least "disrespectful" to the people of Hong Kong, as
Bishop Joseph Zen, the outspoken head of the territory's Catholic Church,
put it yesterday. "The people have a right to know [in a] timely [manner]
and not be kept in suspense for so long," he told a local radio station.

It is far more than that. The lack of transparency and behind-the-scenes
maneuvering reflect the worst aspects of China's Communist system. It is
how things are routinely done on the mainland -- President Hu Jintao and
his colleagues were, for instance, chosen through a protracted process of
secret conclaves without even a pretense of paying any respect to the views
of the Chinese public.

But it is not how things are meant to be done in Hong Kong, under the
separate system supposed to exist in the territory. By promising "one
country, two systems," China had appeared to recognize that Hong Kong's
survival as an international financial center hinged on maintaining values
still rarely seen on the mainland, not least transparency and timely
decision making.

One of the most unfortunate aspects of Mr. Tung's nearly eight years in
office is that these values were allowed to slide in favor of a more
mainland style of decision making. Deals, such as the notorious Cyberport
project, were cut with favored tycoons behind closed doors instead of being
put out to open competition. And many of the British-trained administrators
whom Mr. Tung inherited from the territory's former colonial rulers fumed
at the impossibility of getting a quick decision on anything out of the
Chief Executive's Office.

Now all those faults have come to the fore in the prolonged uncertainty
over the timing of his departure. China would apparently prefer to delay
the announcement until Mr. Tung receives his retirement post -- he is
expected to be named a vice-chairman of the Chinese People's Political
Consultative Conference, a powerless but prestigious talking shop, at the
end of its annual session on Saturday.

But that means leaving Hong Kong's leadership subject to the dictates of
the mainland timetable. After some initial jitters when the news first
leaked out early last week, the territory's financial markets have so far
reacted calmly to the prolonged political uncertainty. That probably
demonstrates how the markets have long since discounted Mr. Tung's
ineffectual decision making. Nonetheless allowing the leadership vacuum to
persist for another week would be tempting fate in a city that still prides
itself on being Asia's financial center.

A better strategy would be to end the uncertainty and confirm Mr. Tung's
departure without delay. In a best-case scenario, that would be followed by
elections to choose a successor who would enjoy the legitimacy that comes
from a democratic mandate. But even if that fails to happen, whoever
emerges as Mr. Tung's replacement could usefully learn from the protracted
process surrounding his departure -- and try to steer the territory back to
the more transparent and efficient style of governance it enjoyed under
British rule.

-- 
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R. A. Hettinga <mailto: [EMAIL PROTECTED]>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'


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