Speaking about the long-term economic viability of Hong Kong in recent months, Tung Chee-hwa declared what he called the 'three highs' that have hampered competitiveness.
High rents, high property prices and high salaries have reduced Hong Kong's competitiveness in the economic world. All have to be adjusted downwards to a more reasonable level.
His cure for rocketing property prices was to promise that seven out of 10 families would become flat-owners in 10 years with the supply of 85,000 units annually, as well as a long-term land-supply plan.
Originally aimed to bring prices down gently, the medicine was too strong for the economy when it was devastated by the financial turmoil.
Prices plunged as much as 50 to 60 per cent in what many considered a free-fall. There was no sign of any bottoming out.
As the Chief Executive was desperately trying to prop up the market and keep the price level stable, he was facing the challenge of the next, and last, round of price adjustments: salaries.
On the same day Hongkong Telecom shocked the SAR with the announcement of across-the-board pay cuts of 10 per cent for its 13,000-strong workforce, Mr Tung was reassuring visiting Irish Prime Minister Bertie Ahern that the Government was fully committed to the free market in the adjustment process.