Donald Tsang to outline policy for the transition after the chief executive announces his resignation, sources reveal Tung Chee-hwa will announce his resignation today under 'gracious and honourable' departure arrangements, senior government sources said last night. The chief executive will announce his intention to step down in a speech in which he will also offer a self-assessment, admitting that some of his policies hurt some people but saying the benefits are starting to be felt. The resignation is not expected to be made formal until Saturday, when Mr Tung is selected as a vice-chairman of the Chinese People's Political Consultative Conference. Mr Tung, who left his office yesterday afternoon with assistants carrying two suitcases, will be accompanied by executive councillors and ministers, but not the entire cabinet, when he makes his speech. A special Exco meeting may be held beforehand. After the speech, a source said, Chief Secretary Donald Tsang Yam-kuen - who is expected to take over for the remaining two years of Mr Tung's term - will give a short address. Security around Mr Tsang has been stepped up and he was accompanied by guards yesterday. Mr Tung will be in Beijing at the weekend to attend the CPPCC closing ceremony. He is also expected to meet state leaders. National People's Congress delegates in Beijing said yesterday the central government would announce on Saturday that Mr Tsang would assume Mr Tung's duties until an election was held. They said Beijing would also announce the controversial decision that the successor will serve only until the expiry of Mr Tung's term in 2007. It is understood that Mr Tsang will then deliver a speech to map out his political thoughts and policies for the transition period. It was not clear last night which cabinet members will be present for today's announcement. Three Exco members, Andrew Liao Cheung-sing, Cheng Yiu-tong and Tsang Yok-sing, as well as Secretary for Home Affairs Patrick Ho Chi-ping and Secretary for Education and Manpower Arthur Li Kwok-cheung, said yesterday they would stay in Beijing. However, Executive Councillor Leung Chun-ying returned to Hong Kong last night. 'Mr Tung is expected to say that he wants to step down and it is a good time to do so since Hong Kong's economy has recovered and is heading in the right direction,' a source said. 'I believe he will offer a self-assessment of his work. He will say that he has done a lot for Hong Kong, but many of these changes have adversely affected people in the city. But he will say the benefits brought by these changes have started to come, and the impact of these changes will continue.' Mr Tung seemed relaxed when he went to his office in the central wing of the Central Government Offices yesterday morning. He was visited only by Mr Tsang, who stayed about 40 minutes. Other cabinet members, including Secretary for Justice Elsie Leung Oi-sie, Secretary for Health and Welfare York Chow Yat-ngok, Secretary for Security Ambrose Lee Siu-kwong and Police Commissioner Dick Lee Ming-kwai were seen visiting Mr Tsang in the west wing of the government offices. Government sources said Mr Tsang gave the officials a morale-boosting talk and told them to keep up their good work. Mr Tung left his office early, at about 4.30pm. Pro-Beijing figures heaped praise on Mr Tung but also acknowledged Mr Tsang's ability. Tycoon Stanley Ho Hung-sun said Mr Tung was a smart and outstanding leader. He said civil servants would be happy with the appointment of Mr Tsang, who had been a career civil servant. David Chu Yu-lin, a Hong Kong deputy to the NPC, praised Mr Tsang as a man of outstanding talent with strong skills of communicating with the public. Hongkong and Shanghai Banking Corporation chairman David Eldon said uncertainties over Mr Tung's resignation must be resolved soon.