HONG KONG -- Saddled with economic woes, eroding confidence and a struggling political leadership, the last thing Hong Kong needs is doubt cast on the future of its democratic freedoms.

But the regional government's determination to push through a new anti-subversion law despite mounting public opposition has done precisely that.

Since a loosely worded consultation document on the new legislation was unveiled in September, a disparate grouping of organizations ranging from Amnesty International and the World Assn. of Newspapers to multinational banks and chambers of commerce have weighed in with high-profile public statements of concern.

Last Sunday, thousands of marchers snaked their way through central Hong Kong, protesting the proposal. Organizers called it the largest demonstration against the regional government since the British colonial era ended more than five years ago.

"It's not just the mass media and some politicians" who are opposed, said Martin Lee, co-founder of Hong Kong's Democratic Party and a human rights activist. "It's bankers, lawyers, businesspeople and librarians. What more do you want?"

Even President Bush was drawn briefly into the debate, feeling compelled to underscore the importance of "preserving the rights of Hong Kong citizens" in comments made during Chinese President Jiang Zemin's visit to the U.S. in October.

Opponents of the law worry that it could limit freedom of expression, including media freedom; restrict the flow of economic data; and even lead to a ban of groups, such as Falun Gong, that are viewed as undesirable by the central government in Beijing.

More broadly, many critics also see the legislation as a potentially serious blow to the 5-year-old political experiment meant to protect democratic rights and rule of law in Hong Kong as it changed from a British colony to a quasi-autonomous special administrative region of China.

A three-month discussion period on the consultation document, which sketches out the planned law, is due to end this month, after which a final version of the law will be published "as soon as practicable," according to the government. Because 36 of the 60 Hong Kong legislative council members are government appointees, passage is virtually guaranteed.

Still, there are signs the government wants to ease the pressure. It has indicated that it would roll back proposed additions to police search and seizure powers and hinted that it might be backing away from its refusal to publish a draft bill for discussion.

More than any other factor, it is the Western-style freedoms and legal system that have set Hong Kong apart as an attractive Asian financial center and a preferred location for foreigners doing business in the vast but chaotic Chinese market.

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But the government's refusal to publish a working draft of the bill -- a so-called white bill -- coupled with questions about the timing of the legislation and the Hong Kong administration's commitment to democracy, have all fueled suspicion.

"Why now?" asked Lee.

The government counters that, given the years since Hong Kong reverted to Chinese sovereignty, it's time to act.

Ip hasn't helped her cause with quips implying that democracy is overrated and noting that Adolf Hitler came to power through universal suffrage.

In a carefully worded comment published in a recent edition of the Financial Times, Hong Kong's former chief civil servant, Anson Chan, joined the debate with an understated yet powerful voice.

"Unfortunately, in its sometimes hard-sell approach, the government has failed to allay public concern," she declared. "There is growing suspicion of its motives."

Frank Martin, president of the American Chamber of Commerce in Hong Kong, is one of many urging the government to publish a draft bill to better focus the debate on specific language. He noted that a provision in the consultation document addressing the theft of state secrets fails to define what a state secret is.

Kin-ming Liu, general manager of Apple Daily, Hong Kong's popular anti-establishment newspaper, said the proposals would extend prosecution for unauthorized government leaks to include the recipient of any documents as well as the civil servant passing the information.

"It's going to become more draconian," he said.
The intensity of opposition has led the government to give some ground, but there is no sign of scrapping the law.

"I don't think the Hong Kong government is going to back down in any significant way," Liu said. "It will still try to push this through."