Finally, although the mainland authorities did not exercise overt intervention, the viability of "one country, two systems" remains a matter of concern. For instance, the adaptation of Hong Kong laws aroused fears that mainland organizations in Hong Kong, such as the local New China News Agency - the de facto Communist Party organ - would be exempted from local laws, which obviously contradicts the Basic Laws. While the worst fears of people concerning political intervention from the mainland have not materialized, they are still worried about the preservation of the rule of law, the freedom of association and expression, and other civil liberties.
As Tung delivered his second policy address on October 7, 1998, Hong Kong was engulfed by a sense of uneasiness and frustration. The reversion to Chinese sovereignty has ushered in constitutional and leadership changes and engendered uncertainties for the future.
Two lessons can be drawn from Hong Kong's rendezvous with history after July 1, 1997. First, the administrative system and policies carried over from the colonial era have been called into question by new difficulties that have emerged in the post-1997 era. But Tung and his team have yet to offer a viable alternative. Second, the Asian financial turmoil has fundamentally recast the economic and political framework for Hong Kong, exposing the fragility of its economy and the perils of its ongoing restructuring. A new, grand strategy is needed to arrest the current economic recession and to defuse the looming social and political tensions.
Hong Kong, to be fair, is far more fortunate than most of its Asian neighbors, but the entire community cannot expect to remain unscathed by the regional financial crisis. The roots of Hong Kong's current predicament stem not simply from the burst of a bubble economy carried over from the British, but also from the inability of its leadership to respond effectively to a rapidly changing environment. The coming year is critical to the Chief Executive; he must craft a new policy program and a new leadership style under growing adversity. Whether Tung Chee-hwa can meet this formidable challenge and turn things around is, however, unclear. (25)
Japan continues to host international symposia on the press including China and Hong Kong participants, but the subject matter never touches on the question of press freedom in Hong Kong.
