HONG KONG (Reuters) - Hong Kong's leader unveiled a new, reshuffled cabinet on Saturday, a team that will face tough challenges in the next five years from pollution to making good on the chief executive's promises on democracy.
Among the notable appointments are a new head of the civil service and finance chief, as well as a staunch pro-Beijing leftist who was once jailed in the 1960's.

Henry Tang will shift from being financial secretary to chief secretary -- the city's number two post as head of the civil service. John Tsang, the former private secretary of the last British governor Chris Patten, will become financial secretary. Tsang is now director of the Chief Executive's Office.

"I have every confidence they'll deliver the best to Hong Kong," Chief Executive Donald Tsang, flanked by his 15 principal officials, told a press conference. The Tsangs are not related.

The chief executive said his new team was "energetic", "patriotic" and shared his "governing philosophy" to help deliver on pledges put forward as part of his campaign for re-election in March.

"It will be a people-based government ... to feel the public pulse and to embrace the public sentiment," said Donald Tsang.

Among the biggest issues facing the government in the five-year term that starts on July 1 is political reform and the need to reconcile public calls for direct elections as soon as possible with Beijing's aversion to quick moves on that front.

"I will endeavour to deliver universal suffrage in the election of the chief executive and election of the legislature in the coming five years," Tsang told reporters.

His reshuffled cabinet includes six newcomers. One symbolic and potentially controversial inclusion is Tsang Tak-sing, an overtly pro-Beijing loyalist, who becomes the secretary for home affairs -- a key policy position bridging government to society in sensitive areas including education, religion and human rights.

While previous cabinets have included left-leaning officials including former Justice Secretary Elsie Leung who served under Beijing annointed former leader Tung Chee-hwa, Tsang's appointment is being seen as an explicit attempt by the current administration to share some power with the pro-China camp.

"It's a breakthrough for the leftists," said Ivan Choy, a political analyst at Chinese University.

Tsang, 58, is a former chief editor for the pro-Beijing Hong Kong newspaper Ta Kung Pao who was jailed for two years in 1967 for distributing leaflets during riots sparked by pro-communist forces agitating against the British colonial government.

"I think Beijing would like to have more pro-China forces in the government to get administrative experience ... so that 10 or 20 years later, chief executive candidates can come from the pro-China camp," Choy added.

The new cabinet posts will take effect at the start of July on the 10th anniversary of Hong Kong's reversion from British to Chinese rule, with Chinese President Hu Jintao widely expected to swear in Tsang and his cabinet during a visit to the city.

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