No Tung Chee-hwa, no Article 23, no SARS, and an economy on the rebound. With many of the issues that drove people to protest in the past two years gone, a dramatically smaller number of protesters gathered Friday to mark the 8th anniversary of mainland rule by shouting slogans calling for democracy, while a cheerful gathering of roughly the same size danced in the streets and sang songs of praise for China.

A peaceful crowd estimated at more than 20,000 marched for democracy as they had in past years but this was nowhere near the outpouring that brought a half million people out to mark the same occasion in 2003 and 2004.

Meanwhile, capitalizing on the current political calm in Hong Kong, pro-Beijing organizations staged a morning parade with about 20,000 people clanging cymbals and singing patriotic songs to mark the handover.

On the streets, at least, it was a draw - with the best news for Beijing and the government being that most people just stayed at home and enjoyed a day off.

Beijing has tightened its political grip and ruled out full democracy anytime soon, but the mainland has nonetheless relented in some important ways. Chiefly, Hong Kong does not have Tung Chee-hwa to kick around anymore and Chief Executive Donald Tsang is in a honeymoon period with the public.

For Tsang, it had to be a day of sweet victory. Selected by Beijing, unopposed at home and confident his brand of civil-service efficiency is just what Hong Kong needs, he begins his term with the streets relatively quiet and discontent seemingly at low ebb.

``We love our country and we love Hong Kong because that is what we should do, and we do so naturally from our heart,'' Tsang said at the traditional flag-raising ceremony in the morning.

staff.reporter@singtaonewscorp.com