Gloomy skies over HK handover anniversary

Some protestors carried a coffin they said symbolized "the death of democracy"

HONG KONG, China (CNN) -- Hong Kong is marking the fifth anniversary of its transfer to Chinese rule, with low-key ceremonies under stormy skies mirroring a widespread economic gloom cast over the former British colony.

With Chinese President Jiang Zemin in the territory for the anniversary, protest groups planned to take to the streets to demonstrate against what they say are worsening human rights and the government's poor economic record and rising numbers of layoffs.

Among those planning to protest were members of the Falun Gong spiritual movement, banned as an "evil cult" on the mainland but still legal in Hong Kong, which has a high degree of autonomy under the "one country, two systems" formula agreed ahead of the 1997 handover.

A heavy police presence means they and other protestors will be kept well away from Jiang and other dignitaries attending the swearing in of Hong Kong Chief Executive Tung Chee-hwa's second term.

AUDIO CNN Senior Asia Correspondent Mike Chinoy on Hong Kong's future 2.13MB / 3min. 23secs WAV sound   RESOURCES Photo gallery: 1997-2002 through the lens  Timeline: Five years under Chinese rule    CNN NewsPass VIDEO The People's Liberation Army stages training drills for the Hong Kong news media. CNN's Mike Chinoy reports. Play video Five years after its handover to China, fears over Hong Kong's political fate have given way to concerns about its economic viability. CNN's Lisa Barron reports. Play video   IN-DEPTH One Country Two Systems: 5 Years On    MORE STORIES • Hong Kong tops economic freedom rating  • Gloomy forecast for Hong Kong democracy  • Repression marks anniversary  • China assures economic push  • Who needs Hong Kong?

Opposition groups say several critics of the Chinese government have been barred from entering the territory in the run-up to the anniversary.

Falun Gong leaders say almost 100 members of their movement were deported by airport immigration officials.

Hong Kong security chief Regina Ip has denied that anyone was being targeted for their beliefs, but added that it was important immigration officials did their job of preventing potential troublemakers from entering the territory.

Protest areas

In a bid to keep a lid on protests, hundreds of police and security officers were deployed around the territory's harbor front Convention Center, scene of Monday's ceremonies as well as the actual handover from British to Chinese rule five years earlier.

Streets leading to the venue were sealed off with demonstrators shepherded into designated protest areas well away from the Convention Center.

One group of pro-democracy demonstrators carried with them a mock cardboard coffin as they chanted for an end to one-party rule on the mainland and the downfall of Jiang Zemin.

Inside the Center -- and well out of earshot -- a newly sworn-in Tung pledged to work hard to revive Hong Kong's ailing economy, currently mired in its second recession since the transition to Chinese rule.

For many in Hong Kong, the anniversary marks little to celebrate with unemployment running at a record 7.4 percent, property prices -- a major source of the territory's wealth -- falling by half, and consumer confidence on the slide.

In his speech Tung acknowledged that Hong Kong was "facing unprecedented difficulties" and warned that overcoming the territory's economic problems would be "a long and arduous process"

He said he recognized that "worries are weighing on the hearts of Hong Kong people", but added it was not the time to be pessimistic.

"All of us should realize that Hong Kong possesses the ability to overcome adversity," he said.

Key to Hong Kong's future growth, Tung said, would be building on its position as a global gateway to the mainland while focusing on "the application of new knowledge and new technology" and developing "new spheres of growth."

He concluded by saying that what he called "the Hong Kong spirit" would enable the territory and its people to rise up to the chalenges ahead.

'Safeguard the motherland'

For his part Jiang urged delegates to "make conscious efforts to safeguard the security and unification of the motherland and endeavor to defend its overall interests."

"Facts have shown convincingly that 'One Country, Two Systems' is entirely workable," the Chinese leader told the assembled dignitaries.

An early-morning flag raising ceremony marked the handover anniversary

"I hope the people of all circles in Hong Kong will do still a better job in adapting themselves to the new Hong Kong after 1997 and become better masters of Hong Kong and of our great motherland," he said.

Critics of Tung's rule in Hong Kong have condemned his appointment for a second five-year term saying he is deeply unpopular with the territory's 6.7 million residents.

Rather than being chosen in a popular vote, the chief executive is nominated by an 800-member committee dominated by pro-Beijing figures.

Tung begins his second term with a new cabinet of political appointees, many of whom take on roles once occupied by civil servants.

Analysts expect Tung to use the new 14 strong cabinet as the basis on which to tighten his grip on the territory, push through a controversial new anti-subversion law and possibly introduce new taxes.

Tung says the new arrangement is an "accountability system" but critics say the new appointees will only be accountable to the chief executive.