Hong Kong Officials To Keep Jobs Almost All Civil Servants To Stay When China Takes Over July 1

Hong Kong got a powerful confidence boost Thursday with the announcement that virtually all its top civil servants will stay in office after China takes over on July 1.

Although unconnected with the death Wednesday of Deng Xiaoping, the announcement was a timely one. It is likely to have a calming effect on those in Hong Kong who fear instability now that Deng, architect of Hong Kong’s return to China, is dead.

The fate of the 23 top officials in the outgoing British colonial administration had aroused intense guesswork and fears that those seen as out of step with Beijing’s thinking would be fired.

Hong Kong’s future leader, Tung Chee-hwa, visited Beijing on Wednesday to seek its endorsement of his choices, and the list he disclosed showed only two departures: Attorney General Jeremy Mathews is British and wouldn’t have met the nationality criteria for high office in post-colonial Hong Kong; and Michael Leung already had decided to retire as head of the Independent Commission Against Corruption.

Even the most sensitive positions are to remain unchanged: chiefs of police, security and immigration.

Most critical to the markets was Tung’s decision to keep on Financial Secretary Donald Tsang, despite speculation that he might be dropped because of his public disagreements with Tung over economic policy.

The quest for continuity through the historic change of sovereignty was signaled weeks ago when Tung won the agreement of Anson Chan, deputy to outgoing Gov. Chris Patten, to stay on as his No. 2.

“The appointments ensure a very large measure of continuity,” Tung said in a statement. They “will help to maintain the stability of Hong Kong.”

Under the terms of the Chinese-British treaty ceding Hong Kong, the territory is to remain capitalist, highly autonomous and keep its legal code and freedoms.