Tung Chee-hwa said he would restrict democratic development to that laid down by the Basic Law, but offered to study foreign government systems and the possibility of a law on political parties.
Electoral arrangements would be studied after the Legco elections in September next year to see whether they were seen as fair and open.
Mr Tung said he would not speed up the pace of democracy.
'The pace of democratic development must be in step with the actual situation in Hong Kong. We must allow time for further study and for the present political system to mature,' he said.
Describing the views over the pace of democracy as divergent, Mr Tung said the mini-constitution - which says there cannot be full democracy before 2007 - would enable Hong Kong to consider the next step forward in light of the political experience during the period.
'I hope that by 2007 a mature view will have emerged in the community on the development of the political structure which will help us to decide on the strategy and the steps needed for its further development,' he said.