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HONG KONG (AP) -- Hong Kong 's first post-colonial leader, Tung Chee-hwa, who struggled to cope with an Asian financial crisis and growing protests for democracy in the early years under Chinese rule, has died at age 89.
His office said in a statement that Tung passed away peacefully in the presence of his family members on Tuesday.
Tung, a shipping tycoon, had little political experience before a panel of pro-Beijing elites picked him to be the first leader of the southern Chinese territory after the end of British colonial rule in 1997.
Many believe Beijing perceived Tung as a loyalist who would obey the Communist leadership's edicts. He was also seen as beholden to Beijing because China's state-run banks helped rescue his family's ailing shipping company -- Orient Overseas Container Line -- during a global slump in the 1980s.
The early years after the handover were sensitive. The "one country, two systems" formula, in which Hong Kong was supposed to maintain civil liberties and other remnants of its British past while Beijing had the final say on issues such as political change, was still untested.
Tung was praised for his work ethic, even nicknamed "7-11" because of his reputation for long workdays, but his clumsy political skills and perceived indecisiveness as major crises mounted eroded his popularity and led to a less flattering nickname, "Old Dumb Tung."
Shortly after Tung took office in 1997, Hong Kong was hit by bird flu -- the first known cases of the virus in humans. The wealthy city's economy was also battered by a financial crisis that swept across Asia.
Tung's response to the two crises was widely criticized and his deep distrust of the media hindered his ability to improve his image. He was also prone to policy gaffes that made him the butt of jokes.
Despite his rocky first term, Tung was reelected unopposed by the pro-Beijing electoral committee in 2002.
He confirmed he was leaving on March 10, 2005, insisting his failing health was the reason, not pressure from Beijing. "If I continue as chief executive, I won't be able to handle it," he said.
Many were suspicious about Tung's explanation because no health problems were apparent in the months before his resignation.
According to a 2005 biography on the government, Tung was born in Shanghai on May 29, 1937, and his family moved to Hong Kong in 1947 - two years before the Communists took over the mainland.