CHARISMATIC: Mrs Chan smiling for the cameras at a press conference yesterday after announcing her intention to stand for election. She said she was doing so to revive a sleepy public consultation on democratisation. -- PHOTO: AP

The popular Mrs Chan has become a key democracy advocate since she stepped down in 2001 as chief secretary in the first post-1997 administration under Mr Tung Chee Hwa.

Announcing her decision yesterday to contest the seat left vacant by the death of pro-Beijing politician Ma Lik recently, she said she was doing so to revive a sleepy public consultation process on democratisation.

The government is conducting a three- month public consultation on how the city can achieve universal suffrage.

'At the moment, the reaction to the Green Paper has been one of resigned indifference,' Mrs Chan said yesterday, referring to the consultation document put out by the government, which will brief Beijing on the findings by year's end.

'I want to make Hong Kong people feel that they have a role, and they can shape the future of constitutional reforms.'

DEFINING MOMENT 'I want to make Hong Kong people feel that they have a role, and they can shape the future of constitutional reforms...For me, this is a defining moment, an opportunity to put to the test all the values I hold dear. I need to put my money where my mouth is.' FORMER HK NO.2 ANSON CHAN, who is a key democracy advocate ... more

Her decision yesterday was cheered by the pro-democracy camp, which sees it as a morale booster.

The 67-year-old declined to run in the race for Hong Kong chief executive in March, which was won by Beijing-backed incumbent Donald Tsang.

Contesting the Dec 2 by-election for a seat in the city's 60-strong Legislative Council (Legco) - and winning it - will mark an official return to politics for Mrs Chan.

She told a press conference yesterday that the by-election in the Hong Kong Island constituency represents more accurately what she stands for, compared to the election for Hong Kong's leader.

The Legco representative is elected by about 600,000 residents in the constituency, unlike the chief executive, who is picked by an 800- strong, pro-Beijing election committee.

'For me, this is a defining moment, an opportunity to put to the test all the values I hold dear,' said Mrs Chan.

'I need to put my money where my mouth is.'

The contest could also throw up a head-to-head clash with another former civil servant, Mrs Regina Ip, who is expected to run on behalf of the pro-Beijing camp.

The former security secretary made headlines earlier this decade when she pushed for a controversial and unpopular anti-secession law.

The legislation was later dropped after about half a million people took to the streets in protest.

Mrs Ip said yesterday: 'I have said I would actively consider running. Any candidacy by anyone will not affect my final decision.'

Whoever wins the by-election will serve as lawmaker only until September next year, when fresh Legco elections are expected.

But December's contest could inject renewed public interest in the pace of Hong Kong's democratic reform.

'The debate has been going on for so long without making headway that it has just seemed so pointless talking to the world's biggest communist country about democracy,' said Hong Kong Island resident and lawyer Shen Man Yan.

'But perhaps Mrs Chan can do something more since she was once a top official herself.'

While Mrs Chan has stressed that 2012 - when Hong Kong next picks its leader - is not an unrealistic target for universal suffrage, many believe 2017 to be the earliest plausible option.

This follows hardline comments from Beijing leaders such as Mr Wu Bangguo, chairman of the National People's Congress, who said in June that the city will only have as much autonomy as authorised by Beijing.

Analysts also warned against expecting too much from Mrs Chan.

'Negotiating democracy with Beijing requires close talks between both governments, and various political parties,' Chinese University political science professor Ma Ngok told media. 'Universal suffrage never depended on just one person.'

A government source hinted that Mrs Chan's candidacy could even backfire on the pro-democracy camp.

Beijing, he said, has so far allowed increased democracy in Hong Kong - such as the city's first contested leadership poll in March - as it has 'never been threatened'.

'But Mrs Chan's credibility and popularity could pose a real challenge to the status quo and force Beijing to close up even further,' said the source.