Hong Kong Leader Fights for Political Life

Hong Kong's leader, Tung Chee-hwa, acknowledged yesterday that he had lost the trust of the people as thousands of protesters demanded his resignation

Amid the territory's worst political crisis since the 1997 handover to Chinese rule, the chief executive's authority was further undermined by calls from an ally to sack the security secretary, Regina Ip.

Effigies of Mr Tung - who has been criticised for kowtowing to Beijing - were paraded at a candlelit vigil outside the legislature. Organisers said 10,000 people would protest in a second display of people power after a 500,000-strong rally on July 1.

Mr Tung, a tycoon chosen by Beijing to run the territory, has seen his popularity dive as the economy stagnates, unemployment rises and doubts grow over his handling of the Sars outbreak.

The protests follow his bid to ram through an unpopular anti-subversion law, which critics claim will erode the human rights enshrined in the Basic Law, Hong Kong's post-1997 constitution.

In a humiliating u-turn, Mr Tung watered-down and then postponed enactment of the law two days before a vote in the legislature - the resignation of an ally made it unlikely it would be passed.

Analysts say the protests could prompt greater democracy in Hong Kong, which has only a limited suffrage.

Christine Loh, a former independent legislator, says last week's huge rally has prompted questions about the system.