In a policy address that brought no bold new ideas on economic policy, the announcement that stood out was the creation of a taskforce to examine questions of constitutional reform.
The group, headed by Chief Secretary Donald Tsang Yam-kuen, will consult the central government, as well as the Legislative Council and interest groups in Hong Kong. Its creation, Mr Tsang said after the chief executive's address, was in accord with the law and political reality. He is right on both counts. The Basic Law gives the central government a say - indeed, the final say - over the development of universal suffrage in Hong Kong. This means locally passed reforms which fail to win Beijing's approval cannot be implemented. The difference of opinion would lead to conflict with Beijing and could threaten the stability of Hong Kong.
The questions the taskforce are to examine - including the legal basis upon which changes can be made - are important. They should be pursued quickly.
Tung Chee-hwa was justified in setting up the taskforce. Much might be made of the political reality he faced: he was acting at Beijing's request. The central government, however, was equally justified in requiring that its views be taken into account. The Hong Kong and Macau Affairs Office issued a statement on Mr Tung's speech and this was unprecedented on two counts: it was the first time since 1997 that Beijing has commented formally on a policy address and it was the first time since the handover that the executive arm of the government released a written statement on Hong Kong affairs. Clearly, Beijing takes the matter of Hong Kong democracy seriously - and expects its views to be taken seriously. Mr Tung, and all people in Hong Kong, would be foolish to do otherwise.
Where Mr Tung fell down, however, was in failing to give more than a passing nod to the aspirations of the Hong Kong people. It was as though July 1, 2003, and January 1, 2004, were mere dates in history and November's district council elections never took place. There was a wide expectation, encouraged by the Tung administration, that Hong Kong would soon see a timetable laid out for consultation on political reform. Yesterday's policy speech did not even include a reference to a timetable. Mr Tung kept faith with Beijing, but not with the Hong Kong people.
Secretary for Constitutional Affairs Stephen Lam Sui-lung, a member of the taskforce, had promised a timetable would be published in December and public consultation would begin this year. He explained yesterday the timetable had been postponed upon a direct request from the central government.
