Hong Kong (CNN) Hong Kong's embattled leader Carrie Lam has finally fully withdrawn a controversial bill that allowed extradition to mainland China and sparked three months of dramatic protests in the financial hub.

The decision to cave in to one of protesters' five core demands marked a dramatic U-turn for Lam, who for months has refused to withdraw the bill.

"We must find ways to address the discontent in society and look for solutions," Lam said in a a video statement Wednesday evening. "After more than two months of social unrest, it is obvious to many that this discontentment extends far beyond the bill."

But Lam refused to give ground on protesters' four other demands, including greater democracy for the city and an independent commission into police conduct, saying all investigations would be carried out by the existing Independent Police Complaints Council (IPCC).

Carrie Lam's four actions 1. Hong Kong government officially withdraws extradition bill 2. Two new members appointed to Independent Police Conduct Commission 3. More direct communication with the community 4. Calls for community leaders to "independently examine" problems in society

Instead, she announced the addition of a former education bureau chief and former judge to the IPCC. Lam said the government's priority now was to restore law and order to Hong Kong. "Let's replace conflicts with conversations and let's look for solutions," she said.

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