OVERT INTERFERENCE? Apparently not. Indirect, subtle interference? Evidently so. Three years after the handover, the question of how to balance 'one country' with 'two systems' is far from settled. That Beijing is keen to have the ultimate say in Hong Kong's political development is clear from the meetings in Beijing last week between 30 SAR tycoons and the mainland leadership.
The crucial issue of a second term for Chief Executive Tung Chee-hwa, which had been decided in principle by senior Politburo members earlier this year, was finalised. According to official reports and some tycoons, President Jiang Zemin not only praised Mr Tung's performance but called upon the top businessmen to observe the 'unity principle'.
In the context of Beijing-Hong Kong relations, this means rallying behind the politician whom the leadership has painstakingly groomed since the early 1980s - Mr Tung. Despite the overall pro-Beijing image projected by SAR corporate chiefs, it is important to note that quite a number - including some of these 30 kingpins - are considered members of a 'dump-Tung coalition'. A major reason behind anti-Tung sentiment, according to coalition affiliates, is the Chief Executive's alleged favouritism towards a few tycoons who are his long-standing supporters and former business partners.
While Mr Tung's term still has two years to run, the high-profile affirmation of his track record by Mr Jiang and Premier Zhu Rongji last Friday has silenced the opposition - and effectively given the former shipping magnate a mandate through to 2007. This is despite the fact that the composition of the Election Committee that will formally pick the next Chief Executive in 2002 has not even been determined.
According to a source familiar with Beijing's SAR policy-making, Mr Tung had, early this year, indicated to the leadership his desire for a second term. 'Tung has pointed out that many of Hong Kong's post-handover problems stem from factors beyond his control, particularly the Asian financial crisis,' the source said. 'Tung has pledged to the Jiang leadership that, with the effect of the crisis wearing off, he can bring the SAR to greater glories in his second term.' The source said that despite Mr Tung's popularity having fallen to record low levels, Mr Jiang and his colleagues have expressed total trust in his ability. Since the spring, Beijing's Liaison Office in the SAR, formerly known as Xinhua, has orchestrated an elaborate campaign to bolster Mr Tung's status and image.
What made the tycoons with reservations about Mr Tung agree to Beijing's 'unity' persuasion? Apart from not wanting to run foul of the powers that be, the major reason was the promise of unprecedented business opportunities after the mainland's accession to the World Trade Organisation (WTO). And while liberals may fault Beijing for undermining the principle of SAR autonomy by going all out to ensure a second term for Mr Tung, it will be hard for them to deny that the investment and other commercial prospects unveiled by the leadership last week would give the SAR economy a lift.
'Politically, the tycoons were asked to observe the 'unity' principle through supporting Tung,' said a source close to last week's meetings. 'Economically, they were asked to bury their differences and jointly exploit post-WTO opportunities on the mainland.' The source added that details of the goodies coming the SAR's way were spelled out in separate meetings chaired by ministerial-level cadres, such as planning chief Zeng Peiyan and the head of the Hong Kong and Macau Affairs Office, Liao Hui.