Donald Tsang - Government Service

Government Service

Tsang joined the Hong Kong Civil Service in January 1967, and held positions in many different government departments, ranging from finance, trade to policies relating to the transfer of Hong Kong's sovereignty from the United Kingdom to the People's Republic of China.

From 1981 to 1982, Tsang studied in the United States, where he completed a Master of Public Administration at the Kennedy School of Government at Harvard University. He has also received honorary doctorates from the Chinese University of Hong Kong, the Hong Kong Polytechnic University and the University of Hong Kong. He was attached to the Asian Development Bank in Manila in 1977 for a year and worked on water supply and railway development projects in the Philippines and Bangladesh.

As Deputy Secretary of the General Duties Branch between 1985 and 1989, Tsang was responsible for the implementation of the Sino-British Joint Declaration and the promotion of the "British Nationality Selection Scheme". He served as Director-General of Trade between 1991 and 1993, and was responsible for all facets of trade negotiation and administration affecting Hong Kong. In May 1993, he was promoted to Secretary for the Treasury, where he was responsible for the overall allocation of resources, the taxation system and the cost effectiveness of the Hong Kong government.

In September 1995 Tsang was appointed Financial Secretary, becoming the first ethnic Chinese to hold the position. He was made a Knight Commander in the Order of the British Empire in 1997 for his long-time service to Hong Kong, and he was knighted by Charles, Prince of Wales at Government House hours before the handover. Tsang was also awarded the Grand Bauhinia Medal by the Hong Kong Government in June 2002. During his term as Financial Secretary, Hong Kong's public spending grew steadily as public revenue remained robust and government budget in surplus. Public expenditure to GDP rose to as high as 23%, though still the lowest among developed economies. He also approved a raise in civil servants' salaries at the beginning of the Asian economic crisis. The salary raise was finally reversed, aligning civil servants' salaries to 1997 levels.

During his six-year tenure, he steered Hong Kong through the Asian financial crisis that swept across the region in 1997 and 1998. He worked with Joseph Yam, chief executive of the Hong Kong Monetary Authority and waged war on speculators attacking the Hong Kong currency peg.

On 1 May 2001 former Chief Secretary for Administration Anson Chan resigned, citing personal reasons. Tung then appointed Tsang to become the Chief Secretary and invited a civil service outsider, Antony Leung, to take up the post of Financial Secretary.

As Chief Secretary, Tsang ranked second to the then Chief Executive Tung Chee Hwa, advising him on matters of policy and deputising for him during his absence. He was also a member of Tung's inner cabinet, the Executive Council, which is also the highest policy-making body in Hong Kong. He assumed the post of acting Chief Executive when Tung's resignation was approved by the Central People's Government of the People's Republic of China on 12 March 2005.

Tsang's identity as a civil servant ended in mid-2002, when the POAS, or ministerial system, was introduced in the territory. He carried on his duty as the Chief Secretary, but was no longer a civil servant. Under the POAS all secretaries are selected by the Chief Executive and do not have to be civil servants.