Hong Kong on edge after government vetoes talks

Hong Kong was braced for further protests today after the government cancelled talks with democracy activists, saying the students' demand for universal suffrage undermined the basis of the talks.

The number of protesters on the streets of Hong Kong has fallen noticeably but the cancellation of talks could galvanise action by the student groups and pro-democracy group Occupy Central today.

Meanwhile, senior political figures have called for a corruption investigation into the territory's embattled leader CY Leung over an alleged multimillion-dollar payout by an Australian building firm.

The cancellation of talks between students and chief secretary Carrie Lam is the latest dramatic development after nearly two weeks of protests pressing Mr Leung to resign and for China reverse its decision not to allow free elections for his position in 2017 but instead to vet the candidates.

The protests have confronted Beijing with one of its most significant popular challenges since it cracked down on pro- democracy protests in 1989, and it shows the challenges China faces in making Hong Kong accept its authority.

Under the terms of the "basic law" mini-constitution for Hong Kong introduced when it reverted back to Chinese rule in 1997, the Communist Party runs the territory using a "one country, two systems" formula that guarantees press and other freedoms for 50 years, and includes provisions for universal suffrage as an eventual goal.

“Students’ call for an expansion of an unco-operative movement has shaken the trust of the basis of our talks and it will be impossible to have a constructive dialogue,” said Ms Lam.

After the protests in Central escalated and police fired tear gas on September 28th, Ms Lam sought to ease the situation, acknowledging public concern and saying she believed the occupation was sincere in wanting to make Hong Kong a better place. The talks had been scheduled for today.

Pretext for cancelling talks

At a news conference last night, Federation of Students secretary general

Alex Chow

said student leaders were disappointed Ms Lam had used their remarks as a pretext for cancelling talks.

“Citizens should come back and take to the streets,” Mr Chow said, while other student leaders echoed his remarks, calling for a show of strength near government buildings.

Student leaders have also threatened to organise more secondary school strikes if the government does not meet their demands.

There was another element to the saga this week after Fairfax Media reported Australian company UGL had paid Mr Leung €5 million in 2012 and 2013 related to the purchase of DTZ Holdings, a property company for which he worked before he took office in 2012.

Mr Leung denies any wrongdoing, and while the report does not accuse him of any crimes it raises issues over transparency.

The territory’s justice department yesterday handed prosecutors a formal brief to investigate the alleged business payout, and said its decision meant to avoid “any possible perception of bias, partiality or improper influence”.

Parliamentarians from the Democratic Party, which has been relatively low-key in the protests so far, said they would veto all but the most pressing government funding applications as part of the growing campaign of civil disobedience.