Volkswacht Bodensee - Hong Kong's first post-colonial leader Tung Chee-hwa dies aged 89

The Shanghai-born former shipping tycoon was hand-picked by Beijing to run the former British colony after its return to Chinese rule in 1997 and served until 2005.

Tung "passed away peacefully in the presence of his beloved family members" on Tuesday, a statement from his office said.

"Mr. Tung dedicated his life with an unwavering commitment to the service of the Nation and the Hong Kong SAR. His contributions with integrity, compassion, and dignity will be well remembered," it said.

The former leader quit the helm with two years left of his second term in 2005, blaming poor health.

But his tenure was an unpopular one, blighted by the Asian financial crisis, record unemployment and unease over Chinese interference in Hong Kong's affairs.

The Tung era reached low points in July 2003 when 500,000 people protested against restrictive anti-subversion laws proposed by China, and again a year later when about the same number rallied for democracy.

It reached its nadir in December 2004 when he and his cabinet were given a public dressing-down by China's then-president Hu Jintao for poor performance.

Tung stepped down shortly afterwards and was replaced by Donald Tsang.

H.Gerber--VB