Responsible decision: "I think it's better for me to step aside because there's a lot of work that needs to be done, for me to step aside and to have another person to carry these things through," Chief Executive Tung Chee Hwa said at a press conference to announce he had tendered his resignation due to ill health.

Chief Executive Tung Chee Hwa has tendered his resignation to the Central Government, citing declining health and his deep concern for Hong Kong and its people.

"Through the hard work of the people of Hong Kong and the support of the Central government, Mainland provinces and cities, the economy of Hong Kong is well on its way to recovery and we have pretty good stability," he told a packed room of reporters during a late afternoon press conference.

"I'm fully aware that achievements take tremendous efforts to consolidate and sustain. Since the third quarter of last year, I began to notice a steady decline in my health due to long working hours in recent years."

Taking into account the interests of Hong Kong, he had tendered his resignation an hour before the press conference. "I felt this was the responsible thing to do for Hong Kong and for the country," Mr Tung said.

"Throughout the difficult times we faced over the last eight years, I have seen the pain and anguish of the people of Hong Kong. Never a moment did I not remember this and not a day passed when I didn't work hard to ease your suffering and address your needs. I heard the voices and listened to your concerns. The people of Hong Kong showed all the courage and wisdom to face challenge after challenge," he added.

"I will forever appreciate and remember your determination, patience and understanding over the past years."

Speaking candidly in a  question-and-answer session, he told reporters, "Age does creep up and I'll be 68 years old in three month's time, and for someone who's been working 16, 18 hours a day, everyday, for a long, long time, my health has been deteriorating."

He said he began to feel unwell in the beginning of the third quarter of last year, tiring easily and having health problems crop up "here, there and everywhere." He said it wasn't just the health aspect, but the way it affected his work, and the way he thought about issues and judged them.

He finds it difficult to stand for long periods of time, so as January 12 - the date of his Policy Address - approached, he asked colleagues to prepare a chair for him. They argued that he was the Chief Executive, who represented the Special Administrative Region. For him to deliver the Policy Address sitting down would not do the SAR's image any good.

The night before the address, he told reporters, he popped some painkillers, and rehearsed the address from beginning to end. "It took me about an hour or so. I didn't feel particularly well, but I could still do it."

He noted that there is a lot of hard work ahead "if we are going to consolidate all the achievements we have made over the last three years or so.

"I think it's better for me to step aside because there's a lot of work that needs to be done, for me to step aside and to have another person to carry these things through."

In reply to a reporter's question concerning his successor, Mr Tung said: " If my resignation is accepted, under the Basic Law, the Chief Secretary will be the Acting Chief Executive for the period until the election is held."

He hoped the reply from the Central Government would come through as soon as possible. "I hope it will be days rather than weeks."

The Principal Officials have been contributing a lot to Hong Kong, he added, and he hoped they would stay on during this transitional period.

Media reports of Mr Tung's resignation have been circulating for more than a week. He explained that he needed time to think through his decision and prepare the groundwork for his successor. "I am sorry I kept you waiting for a long time. But it doesn't happen very often."

Every day since those reports surfaced, he tried to understand whether there was an impact on the economy or the stock market - "and there was nothing untoward that happened," he said.

He sincerely thanked the Central Government for having nominated him as a candidate for the Vice Chairman of the Chinese People's Political Consultative Conference. "I appreciate the trust placed upon me by the Central Government with this nomination," he said.

After eight years as Chief Executive, he says his biggest regret is not being able to complete his second five-year term due to declining health. He also stressed that he would not be returning to his family shipping business, OOCL.

"Since I've become the Chief Executive, I would only be working for the country, I would only be working for the people of Hong Kong. I would not work for any private company, including my family business. I wouldn't work for it. I wouldn't do anything that might have potential for conflict of interest."

The future for Hong Kong is bright, he said.

"Fellow citizens, I believe Hong Kong today is in a pretty good position. I now have even higher hopes for Hong Kong's future than ever before. After eight years of challenges and restructuring, Hong Kong is now better equipped to sail into the future. 'One country, two systems' will prevail, 'One country, two systems' has also given Hong Kong irreplaceable, competitive advantages. These competitive advantages, now properly nurtured, will continue to become more evident."

How does he feel to be leaving his post?

"You know, being the Chief Executive, working like I did, understanding Hong Kong so much better like I do now, a sense of attachment, the sense of being in Hong Kong and with Hong Kong people is enormous. You just have a very special feeling and it's kind of sad to leave," he said.