Jim Thompson, AmCham Chairman

The Hong Kong Government announced on Saturday "significant and important" amendments to the three most contentious areas of the proposed legislation.

The moves came in response to a peaceful anti-legislation demonstration by 500,000 people on July 1, said Mr Tung.

"Many members of the community considered that the Government had responded positively to their concerns. However, quite a number of them had hoped that the Government could allow more time to study the amendments and the Bill in greater detail," said Mr Tung. "We have decided, after detailed deliberations, to defer the resumption of the second reading of the Bill and to step up our efforts to explain the amendments to the community in the coming days."

For leading members of the international business community in Hong Kong the events of the past week underscore the city's openness and diversity of views.

The chairman of the American Chamber of Commerce in Hong Kong (AmCham), Jim Thompson, said Hong Kong people had expressed deeply-held beliefs in a mature, orderly and responsible way.

"Any overseas investor looking at Hong Kong can see for themselves a high-quality citizenry exercising its rights within a law-abiding, peaceful and stable society," Mr Thompson said.

"Hong Kong will remain the freest economy in the region and this is will be the major attraction for investors coming to Asia."

The chief economist of the Hong Kong General Chamber of Commerce, David O'Rear, said the demonstration was a normal part of the democratic process in an open society.

"It will not damage Hong Kong's business environment in any way. Hong Kong is on track to economic recovery and the march is a local issue which will in no way affect investor confidence or weaken political stability."

Mr Tung said his government understood fully the importance the community attached to their rights and freedoms.

"We shall continue to take active steps to maintain and safeguard rights and freedoms and develop democracy in a gradual and orderly manner according to the blueprint laid down in the Basic Law," Mr Tung stressed.

The Government has pledged that the rights and freedoms enjoyed by the people of Hong Kong will not be affected by enactment of the Article 23 legislation. It has also pledged to listen more extensively and strengthen communication with the public.

Click for more information on Article 23 of the Basic Law