The National People's Congress Standing Committee's decision has not in any way undermined the One Country, Two Systems principle, and Hong Kong will continue to exercise the high degree of autonomy strictly in accordance with the Basic Law. 

Chief Executive Tung Chee Hwa has also clearly indicated that he will continue to serve the community of Hong Kong until his present term expires.

Responding to press enquiries on the comments by the Economist Intelligence Unit concerning Hong Kong Chief Executive's term of office, the Government said the comments are sheer speculation.

The Government also said it does not agree with the unit's observations concerning the city's high degree of autonomy and constitutional development.

Since July 1, 1997, the Central Authorities have been fully committed to upholding the One Country, Two Systems principle.

Central Authorities have power to oversee HK's political reform

On Hong Kong's constitutional development, it is important to note that it has never been the intention that Hong Kong can, completely on its own, decide on making changes to the political structure. By constitutional design, the Central Authorities have the power and responsibility to oversee Hong Kong's constitutional development.

While the Government is not in a position to introduce universal suffrage in 2007 and 2008, the Standing Committee's decision leaves plenty of scope for changes to be made to the electoral methods to broaden the electoral basis for electing the Chief Executive, and to elect a more representative legislature.

The Government looks forward to the community's suggestions for such changes consistent with the relevant provisions in the Basic Law and the Standing Committee's decision, with a view to bringing Hong Kong closer to the ultimate aim of universal suffrage.

Gov't treasures freedom of speech, press

In another statement, the Government reiterated that it treasures the freedom of speech and freedom of the press as much as the community does because they are the cornerstones of Hong Kong's success.

It will not tolerate any acts of intimidation, threat, criminal damage or violence against any individual or organisation. Law enforcement agencies would leave no stone unturned in their investigations if and when such cases arise.

It trusts that Hong Kong people will continue to exercise their rights to give full effect to the freedoms that they have.