Such an offer, if one was made, is unlikely to be confirmed. If there was an offer, why it was rejected is anybody's guess. And it has now become irrelevant in any case. The important thing is that people are likely to believe that Mr Tung has made an effort to include dissenting voices in his cabinet.

Faced with strong demand for him to name a democrat, he appears to have put the ball back in their court. The reported offer has revealed the democrats' dilemma, laying bare their differences over the best way to influence policy.

The cross-currents behind the apparent offer to the democrats have effectively diluted the negative impact of the failure of Mr Tung to appoint a democrat yesterday. Against this background, the appointments of Bernard Chan and Laura Cha Shih May-lung will be seen as a half-step towards moderating the conservative, pro-government image of the Tung team.

A political unknown, Mrs Cha has a strong elitist image with a reservoir of expertise and experience in the financial development of Hong Kong and the mainland.

Mr Chan, known for dual connections with the haves (business circle) and the have-nots (welfare sector), will be a key player when the government moves to defuse the time bomb of income disparity.

But despite his pivotal role in the 'critical minority' - members of The Alliance - it is unrealistic to expect Mr Chan to be able to secure all five votes in Legco.

The appointments are a plus for the Tung team, but too little, too late to significantly boost its capability of governance.