Hong Kong's first Chinese leader, Mr Tung Chee-hwa, yesterday confirmed a date for elections in the former British colony and promised a "brave new era" of a capitalist society with a compassionate face.
There was a note of nationalist euphoria and triumphalism in Mr Tung's address to the unelected Provisional Legislature and his cabinet: "We the Hong Kong people have begun to write our own history . . . Hong Kong has finally broken free from the psychological constraints brought about by the colonial era."
The 60-year-old ex-shipping magnate, who took power when China resumed sovereignty 100 days ago, presented his ideas in a sweeping blueprint outlining policies for Hong Kong's first five years as part of China.
The measures will cost HK$88 billion (£7.8 billion) over five years, no unfeasible sum in a territory with 6.4 million people that is the world's seventh-largest trading economy with foreign exchange reserves of over £54.8 billion.
It was his maiden annual policy speech, a tradition dating from 1850 and practised by 28 former British governors. He confirmed the widely expected date of May 24th for the first post-colonial legislative elections. Mr Tung also announced an infrastructure building bonanza that would put a web of new railways and roads on Hong Kong's map and strengthen economic ties with the mainland to make the city the economic powerhouse of southern China.
He unveiled measures to curb speculative activities and increase housing supply in an effort to cool sky-high home prices in a place where a tiny apartment can cost over £680,000, and to boost Hong Kong's status as an international business hub.
His ambitious plan would see all Hong Kong people in decent housing in 10 years, boost welfare for the elderly, promote family values and Chinese culture, raise education standards, and put every home, business and school on the Internet in a highly networked, computer-literate society.
"We will work steadily toward the long-term objective of having a chief executive and a legislature elected by universal suffrage," Mr Tung said, citing a 10-year gradual shift towards democracy set out in Hong Kong's post-colonial constitution.
The former tycoon announced a thorough overhaul of the education system bequeathed by the British, to make Chinese the medium of instruction and imbue Hong Kong's children with Chinese culture, history and values.
He announced a HK$5 billion (£441 million) fund to boost education, which he said he believed was the key to Hong Kong's development and further economic growth in an era which required new value-added high-tech industries.
Addressing the misery of pensioners who have recently taken to the streets in protest over their poverty, Mr Tung also declared the government would spend an extra HK$5.1 billion in the next fiscal year on care services for the elderly.
Mr Tung said Hong Kong could no longer derive competitive advantage from its wage levels and needed to consider importing labour from China, although not without restrictions.
With an eye on the competitiveness of business, the government would also review profit tax and might announce changes in next February's budget.