July 7, 2003, 9:07 AM EDT

HONG KONG -- Hong Kong's leader backed away Monday from plans to quickly pass an anti-subversion bill that prompted a massive protest, but critics still called for him to quit.

Chief Executive Tung Chee-hwa "should take the blame and resign," said pro-democracy lawmaker Leung Yiu-chung. "This is an unprecedented political calamity that has wiped out the power and reputation of his administration."

In a stunning reversal, Tung said Monday the bill outlawing subversion, sedition, treason and other crimes against the state would not be submitted for a vote Wednesday as he had planned. Tung had earlier insisted on that timetable after saying on Saturday he would amend portions of the bill in a last-minute attempt to calm the criticism.

Opponents fear the legislation would lead to mainland-style repression of dissident viewpoints and undermine Hong Kong's freedoms of speech, press and assembly. It carries life prison sentences for many offenses.

An official in Beijing said on Sunday the bill should be passed "on schedule," but Tung had to abandon the plan after a key legislative ally, James Tien of the pro-business Liberal Party, refused to go along. Tien announced his unprecedented resignation from Tung's top policymaking body Sunday night, saying the bill needed more public consultation.

Tung's government repeatedly denied Hong Kong's freedoms were in jeopardy but found itself in an unmanageable and unprecedented dilemma after the massive protest last Tuesday, the sixth anniversary of Hong Kong's return from British to Chinese sovereignty on July 1, 1997.

An anti-subversion bill is required under Article 23 of Hong Kong's mini-constitution, but critics say the government tried to go too far with its measure. They accused Tung of betraying Hong Kong's form of government that guaranteed it could keep its Western-style civil liberties and freewheeling capitalist ways.

The United States, the European Union, Britain, Australia and New Zealand all raised questions about the anti-subversion bill. China said they were improperly meddling.

Acknowledging widespread public discontent, Tung said on Saturday he would scrap a provision that allows some groups to be banned, add protections for journalists who publish classified information and delete a provision that would let police conduct searches without warrants.

Tung's opponents responded by stepping up their pressure. Tung huddled with top aides in the wee hours of Monday, then backed down.

Last week's protest was the biggest in Hong Kong since 1 million people demonstrated against Beijing's deadly crackdown on the Tiananmen Square pro-democracy movement in June 1989.

"Beijing should get a very important message: We are not asking for independence, but we do want to be left alone in running our own affairs," said lawmaker Martin Lee, a top opposition figure. "We love our freedom."

Tung's office said: "A lot of people think that the government has proactively responded to their demands, but many still hope the government can give them more time to understand the amendments and the content of the draft bill."

Tung reiterated that the measure must be passed.

The political drama was a first for post-handover Hong Kong, with common people forcing change in a system that critics have long contended was rigged to favor pro-Beijing and big business interests. Some said China's leaders might be alarmed.

"It may well lead to some backlash," said Law Yuk-kai, director of the Hong Kong Human Rights Monitor, a non-governmental organization. "Unlike what Beijing has expected in the past, Hong Kong is not totally under their control. It's in their pocket, but it's still alive and kicking in a way that makes them uncomfortable."

http://www.newsday.com/news/nationworld/wire/sns-ap-hong-kong-china,0,2727603.story?coll=sns-ap-nationworld-headlines