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SCMP Reporter

Top civil servant Anson Chan Fang On-sang is understood to have resigned less than 1.5 years before her term was due to end.

Financial Secretary Donald Tsang Yam-kuen is tipped to succeed her.

Television news bulletins quoted government sources last night as saying she had tendered her resignation after nearly 40 years as a civil servant. She was quoted as saying that it was now time for her to do other things.

A formal announcement confirming that she had stepped down would be made soon, the sources said, adding that she would stay on for a few months to smooth a transition.

Mr Tsang left the Central Government Offices shortly before 7pm, without commenting on the reports. Any appointment of principal officials has to be made by the central Government.

Mrs Chan's resignation would trigger the most far-reaching reshuffle at the top level of government since the handover. There has been constant speculation that she has been at odds with Chief Executive Tung Chee-hwa.

Her press secretary, Cathy Chu Man-ling, said she had no comment on the resignation, without denying it.

Mrs Chan left her office in Lower Albert Road at 3.45pm. She attended a dinner and returned to her official residence, Victoria House, on the Peak at 11.45pm in a silver Mercedes last night without making any comment.

Last year, she received well publicised instructions from the central Government in Beijing to give better support to Mr Tung. There had, however, been no inkling that she was about to step down ahead of her term.

Recent reports have said Mrs Chan may be offered the chairmanship of the joint venture running Hong Kong Disneyland or the vice-chancellorship of the University of Hong Kong.

In January 1999, Mrs Chan opted to become employed on contract terms. In March that year it was announced that she would remain in her post until next year.

Mrs Chan's monthly salary is $216,650.

If her resignation is confirmed she will have to leave Victoria House in Barker Road.

She would receive a monthly pension of $71,735 on retirement.

Mrs Chan, 61 next Wednesday, was the first Chinese civil servant to head the SAR's administration.

Recruited as the first female administrative officer in 1962, she was picked by the last colonial governor Chris Patten in 1993 to become the first local and female Chief Secretary. She enjoyed a reputation as a strong and efficient administrator.

Despite her popularity among the local community, her close relationship with Mr Patten and the British administration is widely believed to be a major reason why Beijing had not considered her as the first Chief Executive.

She was described by overseas media as Hong Kong's conscience and has said she would resign if asked to implement policy that went against her conscience.

During her 60th birthday, she sidestepped a question on whether she would run for the chief executive's post next year. But in contrast to remarks made last March, she fell short of ruling out a possible bid for the top post.

Last September, Beijing publicly told Mrs Chan and the civil service to give 'better support' to Mr Tung.

Xinhua issued the statement 30 minutes after Mrs Chan ended a meeting with Vice-Premier Qian Qichen in Beijing. It quoted Mr Qian as telling Mrs Chan that he hoped she, 'together with the whole civil service, can better support the work of the Chief Executive, to continue to contribute to the prosperity and stability of Hong Kong under the leadership of Tung Chee-hwa'. The statement followed months of criticism of Mrs Chan by pro-Beijing figures, with some privately floating a conspiracy theory and accusing her of being the person behind a series of so-called 'dump Tung' moves. Late last year, Mrs Chan told foreign media that she would prefer to spend more time with her grandchildren after retirement.

Last night, Yeung Sum of the Democratic Party said Mrs Chan's early retirement, if confirmed, would inevitably affect the credibility of the Government.

'The popularity of the Chief Executive is very low, and Mrs Chan is the most popular civil servant with the people of Hong Kong. They have confidence in the civil service because of her.'

Chan Kam-lam of the Democratic Alliance for the Betterment of Hong Kong said a resignation would not affect the work of the civil service.

'The move would inevitably trigger a series of major reshuffles, that might affect the Government,' he said.

Selina Chow Liang Shuk-yee of the Liberal Party refused to comment.

Non-affiliated Eric Li Ka-cheung said Mrs Chan's move would inevitably spark speculation she was seriously at odds with the Chief Executive.

'Mrs Chan is loyal to the civil service. There have been offers from the commercial sector from time to time but she always stood firm to serve the civil service. I cannot see any urgent need for her to leave,' he said.

Lau Siu-kai, sociology professor at the Chinese University, said he saw no convincing reason for Mrs Chan's departure except for a major clash with Mr Tung. He said the Chief Executive might want to introduce an early change to the top level of the civil service to make it more accountable, before announcing that he would run for a second term of office.

'Mr Tung might want new blood from outside, Mrs Chan might want to retain the policy secretaries,' he said. The disapproval of Beijing over her work might also be a reason.

Professor Lau said it was not likely that Mrs Chan would consider running for chief executive next year. 'She is not a politician, and neither can she command an organised force to support her election outside the civil service. Neither is Mrs Chan the designated candidate of Beijing,' he said.



Anson Chan 'quits' - finance chief tipped as her successor