Hong Kong interim leader Donald Tsang said on Saturday that elections will be held on July 10 to pick the city's next chief executive, following the resignation of unpopular leader Tung Chee-hwa. Tsang also said the territory's next leader will serve for two years instead of a fresh five-year term, a controversial move that is bound to heighten fears that Beijing is increasingly interfering in Hong Kong's affairs. But most people in the city of nearly seven million will not be allowed to vote for their own leader, who will be chosen by a Beijing-sanctioned electoral college of 800 Hong Kong people, largely pro-Beijing businessmen and professionals. "The government will endeavour to maintain the stability of Hong Kong on all fronts, especially social and economic," Tsang told a news conference after holding an urgent meeting with his cabinet, who agreed to stay on after Tung's departure. China endorsed Chief Secretary Tsang as the city's interim leader earlier on Saturday after giving Tung a face-saving exit by promoting him to the country's top advisory body. Tung, Hong Kong's first post-colonial leader, announced his resignation on Thursday with two years left to go in his term, triggering a flurry of speculation over the identity of his successor and how long he would serve. According to Hong Kong's constitution, once a chief executive steps down his successor must be elected within six months. Sources say Beijing has already picked Tsang as their man, and has in effect put him on probation by limiting him to serving out the rest of Tung's term. If Tsang performs well, sources said he might win Beijing's backing to run for a full term in 2007. Otherwise, he would just be a seat-warmer for someone more acceptable.