In his seventh policy address released on 7 January 2004, the Chief Executive Tung Chee-hwa failed to give a firm timetable for the review but instead appointed Chief Secretary Donald Tsang Yam-kuen to head a taskforce to find out Beijing's concerns and the way forward.
In an unprecedented move, the Xinhua released a statement minutes afterwards quoting a Hong Kong and Macau Affairs Office spokesman as hailing Mr Tung's new measures for developing the economy and improving administration as active, enterprising, reliable and feasible. Confirming Beijing's request for consultation, the spokesman reiterated Beijing's stance that Hong Kong should promote democracy step by step in line with the Basic Law on the basis of maintaining prosperity and stability.
Tung's decision drew harsh criticisms from Democrats, describing the move as a huge regression. Below please find relevant documents in relation to the controversy.
Christine Loh Newsletter on Policy Address
2004 Policy Address by the Chief Executive para 75-78 (7 Jan 2004)(Link to Government website)