Compared with Mr Tung, Mr Liu is relatively unknown in political and economic circles. The two sat together on the defunct Basic Law Consultative Committee from 1985 to 1990. The committee's role was to advise on the post-handover charter. When the drafting process was complete, Mr Liu remained a low-key businessman while Mr Tung rose to prominence, culminating in his appointment as chief executive in 1997.

Mr Liu writes that while Mr Tung is perfectly capable of governing in times of peace and prosperity, he 'is definitely not a capable mandarin in times of chaos'.

Unlike previous economic downturns, Mr Liu believes Hong Kong is currently suffering from structural problems, or an 'atypical economic recession'. This has stripped Hong Kong of its role as the mainland's 'sole agent'.

'To ride out this atypical recession, we have to first understand that our past prosperity will never recur. We need radical and ground-breaking measures, not 'Band-Aid' solutions and 'hope-for-the-best' policy addresses,' he writes.

Mr Liu dismisses as 'unrealistic' the government's strategy to focus on tourism and financial services and doubts the chances of Hong Kong becoming a major financial hub.

'Lots of money flew into the Hong Kong market for speculative activities in the past, but what kinds of investment [opportunities] are available now?' he asks.

Mr Liu says any economic recovery will depend on the ability of the future chief executive and his or her cabinet to launch reforms. For that to happen, he maintains the Basic Law should be amended to broaden the pool of talent.

Apart from the post of chief executive, which should be filled by a Chinese citizen who has lived in Hong Kong at least 20 years and bears no foreign passport, as stipulated under the Basic Law, he suggests opening up most other cabinet posts to anyone who holds a Hong Kong passport.

Particularly sensitive posts, such as police commissioner, senior judge and security minister, should be reserved for Chinese citizens and permanent residents.

All positions in the cabinet, including that of chief executive, should be elected by a broadly based committee with a gradual transition to universal suffrage.

Mr Liu suggests that the chief executive should become the figurehead of the special administrative region (SAR), similar to the head of the Commonwealth, who is not responsible for the daily operation of the government. He suggests creating the position of prime minister, who would then form the cabinet.

'It makes no difference if a cat is black or white, as long as it catches mice ... Despite a worldwide recession, the Chinese economy is growing at an annual rate of 7.5 per cent,' he says.

'If we get a person with the ability, energy and insight to help Hong Kong, why worry about that individual's political connections?'

Mr Liu argues that the US dollar peg should be abolished. 'An atypical recession would still have occurred even if we had never introduced a fixed exchange rate.' Pegging the currency is 'like throwing someone into the sea with their hands tied'.

The industrialist makes the novel suggestion of turning the area north of Sha Tin, as well as Lantau island, into a 'special zone' within the SAR, where cheap, imported labour from the mainland would be permitted for factory jobs.

Finally, Mr Liu insists that the people of Hong Kong should unite, identify a way forward and persuade the central government to support radical reforms.

'It is not going to be easy,' he says. 'The risk is high, but no more so than if our economy keeps sliding year after year.

'The July 1 demonstration was a collective explosion of discontent at the government's mistakes. Will Hong Kong blow up again if we do nothing?

'Rather than sitting by idly in a city of melancholy, we should revive the fighting spirit of the 60s and 70s.'

For Mr Liu, Hong Kong must make bold and painful decisions before it is too late.

Chris Yeung is the Post's Editor-at-Large