Asia

July 9 (Bloomberg) -- Hong Kong residents, who elect neither their chief executive nor a majority of legislators, turned out by the thousands to demand full democracy and the ouster of Chief Executive Tung Chee-hwa.

Between 10,000 and 15,000 people jammed the streets and squares around the Legislative Council, according to police marshals. Richard Tsoi, a spokesman for rally organizer Civil Human Rights Front, said up to 45,000 may have participated.

''I am here for human rights and the Hong Kong people,'' said Venus Chong, who stood near the Norman Foster-designed headquarters of HSBC Holdings Plc., in a candlelight vigil.

It was the second major street protest in the city in eight days, as people flush with victory over a national security law they claimed would muzzle dissent stepped up their demands on a government they accuse of turning a deaf ear to the public.

The escalating pro-democracy movement in the city may alarm China's communist leaders, who cracked down on their own pro- democracy movement with military force in 1989.

''I think they're already worried,'' said Allen Choate, the Hong Kong-based representative on Greater China for the Asia Foundation. ''I think July 1 caught them off guard. There's no doubt in my mind that Beijing recognizes it will have to make a decision on how relaxed it will be on politics.''

Under Fire

The July 1 demonstration by 500,000 people led to Hong Kong's worst political crisis since the city reverted to China's control in 1997. Tung is under fire for mishandling the economy and lack of leadership. Two recessions and slower economic growth have slashed home values and driven unemployment to a record 8.3 percent. Tung was also accused of bungling the city's response to severe acute respiratory syndrome when it broke out in March.

''I came here for three reasons: Article 23, because the politics are awful and to say Tung should go,'' said Kitty Chan, a Hong Kong lawyer. ''In a few years, Hong Kong will be bankrupt if this continues.''

Tung was forced to abandon a scheduled vote today on national security legislation, known as Article 23, after cabinet member James Tien, head of a pro-Beijing party, quit and majority support for the bill in Legislative Council eroded. Tung has another three years left in his second term. He was selected by a committee controlled by China.

Dilemma

''I can't imagine Tung can last,'' said Choate. ''It's a real dilemma for Beijing. Face is involved as well as politics. Now they're going to have to find and craft an exit strategy that will save C.H. Tung's face as well as Beijing's.''

Under the Sino-British agreement that returned Hong Kong to China, the city is supposed to be moving toward fuller democracy. By 2007, half the city's 60 legislative seats are supposed to be elected, up from 24 today. Tung's critics say he's dragging his feet on democratic reforms.

''What we want now is the government to live up to the spirit of the Basic Law, which promises universal suffrage,'' said Sara Leung, 44, a primary school teacher. ''We hope the government will speed up the democratic process.''

Members of the Falun Gong spiritual group, religious groups, students and businessmen rubbed shoulders with children, the aged and unemployed in the city's central streets, which were closed to traffic. Some placards invoking democracy for Hong Kong drew quotes from Abraham Lincoln, while others lambasted Article 23 and Tung.

No Dialogue

''Tung has shown no inclination to promote democracy in Hong Kong,'' said Joseph Cheng, professor of political science at City University of Hong Kong. ''He isn't even interested in a meaningful dialogue with the opposition.''

With few willing to do it for him, Tung, 66, has taken to defending himself in short statements delivered to reporters in person or issued by his office, often in the middle of the night. In a four-minute meeting press briefing today, he again took no questions from reporters.

''I am confident the whole administration will be able to ride out the challenges,'' he said two hours before the protest. ''Our goal is clear: to win back the support and trust of the people.''

Referring to tonight's rally by protesters, he said: ''The government will be listening to their views carefully.''

It's a hard sell for Tung, whose popularity has plunged and whose government has been longer on words than action, politicians said.

''Tung's government is very stupid,'' said Cheung Man- kwong, a legislator and member of the opposition Democratic Party. ''This kind of rally will continue until the day Mr. Tung listens to the people.'''

China, in its first public comments yesterday on the Hong Kong leadership crisis, gave no hint of dissatisfaction with Tung.

''The majority of Hong Kong people will support the government headed by Mr. Tung,'' Kong Quan, spokesman for the Chinese Ministry of Foreign Affairs, said at a regular press briefing in Beijing. ''The central government is confident that Hong Kong people will go through various current difficulties and look toward a brighter future.''

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