By Keith B. Richburg - The Washington Post, December 12, 1996

HONG KONG, Dec. 11 -- A handpicked elite of pro-China businessmen and professionals today named Tung Chee-hwa, a conservative shipping tycoon who advocates stability over expanded democracy, to be the chief executive of this colony after Beijing formally assumes control next summer.

Democracy advocates immediately denounced the selection as a charade, saying the choice actually was made long ago by Chinese Communist Party leaders in Beijing. Still, Martin Lee, who heads the colony's popular Democratic Party, promised to give Tung "a honeymoon, on probation," if he demonstrates willingness to stand up to China in defense of Hong Kong's freedoms and democratic way of life.

While scores of protesters scuffled with police in the street and burned a coffin signifying the death of democracy, 400 of Hong Kong's wealthiest and most influential residents arrived at a convention center in chauffeur-driven Rolls-Royces, Mercedes-Benzes and Nissan Presidents. The meeting hall was decorated with a huge red curtain backdrop, a setting reminiscent of Communist Party plenums at Beijing's Great Hall of the People.

After the delegates marked their ballots in secret, sealed them and deposited them in a box, each vote was opened and read aloud. Women kept a running tally on three large boards an apparent effort to add an element of suspense. But many here feel the outcome has been preordained since last January, when Chinese President Jiang Zemin singled out Tung for a warm personal handshake during a meeting of Hong Kong advisers in Beijing.

Tung, 59, received 320 votes, to just 42 for his closest rival, retired chief justice Yang Ti Liang, and 36 for businessman Peter Woo. Two ballots were disqualified. Tung was the most conservative, and by far the most pro-China, of the three candidates. He repeatedly has taken positions that would please Beijing's leadership and criticized local democrats for an approach he considers confrontational and unpatriotic to China.

In interviews and remarks leading up to his selection today, Tung has warned foreigners not to use Hong Kong as a base to sow dissent in China after the July transfer from British control, and he has promised to reinstate stiff anti-subversion laws being dismantled by the outgoing colonial government. He has said anyone advocating independence for Tibet or Taiwan would not be allowed to remain here after China takes over. And he openly backs Beijing's controversial plan to dismantle Hong Kong's elected legislature and replace it with an appointed panel a move that democracy advocates say would violate China's treaty commitments with Britain.

On expanding Hong Kong's nascent democracy, Tung has been quoted as saying, "I'm fairly cautious, taking each step at a time."

"I would imagine during the first five years, the stress will be on stability," he told one interviewer. He also said that only during a second term which would not begin until 2002 -- should Hong Kong start "to review beyond 2007 what kind of political process we want."

"Politically, he's very conservative," said Yeung Sum, the Democratic Party's vice chairman. But, he added, "we still hope to develop a working relationship with him."

Chris Patten, Hong Kong's last British governor, whose term here ends with the change of sovereignty in just over 200 days, welcomed Tung's selection and wished him success. But in what seemed like a challenge, Patten said in a statement that Hong Kong "will be looking to the chief executive . . . to defend Hong Kong's interests and the autonomy guaranteed to it . . . and to preserve the cornerstone of Hong Kong's success the rule of law, a level playing field for business [and] the protection of individual rights and freedoms."

Tung, a shy and retiring man who has been called a reluctant candidate for chief executive, is in many ways a quintessential Hong Kong resident: A refugee from communism who fled here from Shanghai with his family at the age of 12, he was educated in Britain, is fluent in English and has long work experience in the United States.

He is a shipping magnate who a decade ago rescued his family's financially ailing company with a $120 million bailout loan backed by China. Politically, he has been a bit of a chameleon who until recently was among the British governor's inner circle of local advisers, even while keeping close contacts with both Beijing and Taiwan.

But Tung faces a tricky political balancing act as he navigates among the various interests that often compete in this prosperous territory.

In his dealings with Beijing, for example, Tung must be able to fend off the myriad, sometimes conflicting Chinese institutions angling for power and influence in the territory.

These include the Chinese Foreign Ministry, which will be moving into a new multistory office building under construction here; the state New China News Agency, which has acted as Beijing's de facto representative here; the Communist Party, which likely will place a senior political commissar here after the takeover; the People's Liberation Army, which will base a garrison here; and provinces with interests in Hong Kong, such as neighboring Guangdong.

In addition, Tung must be able to play to various audiences, saying the right things to each. One audience includes his bosses in Beijing, who may need reassurance that he is tough enough to protect China's interest in stability.

But another audience, the local Hong Kong community, will be looking for reassurances that he is not simply a yes man for Beijing. Yet another audience is the international community, including Britain, which also will be on the lookout for any sign that Hong Kong's Westernized system is threatened.

Michael DeGolyer, a political scientist at Baptist University here who has been working on a 10-year project monitoring Hong Kong's transition, said Tung today managed, in a subtle way, to demonstrate his skill at dealing with different audiences. After his selection, Tung held a brief news conference at which he made remarks in Cantonese, Mandarin Chinese and English the languages of Hong Kong, China and the international community.

CAPTION: Tung Chee-hwa points to journalists at a news conference following his selection as Hong Kong's future chief executive.