President Hu Jintao said Monday that "one Country, two systems" is an unprecedented undertaking.

He made the remarks while attending the celebrations of the 5th anniversary of Macao's return to the motherland and the inauguration of the second-term government of the Macao Special Administrative Region (SAR).

The president said while socialism is practiced in the main body of the country, how to properly administrate, build and develop the two SARs of Hong Kong and Macao, where capitalism is practiced in line with the "one country, two systems" principle, and maintain their long-term prosperity and stability is a brand new subject for the central government.

Hu added that it is also a brand new subject for the two SAR governments.

He said it is therefore necessary for both the central government and the two SAR governments, as well as the Hong Kong and Macao compatriots, to actively explore the ways to implement the "one country, two systems" principle as they go forward.

"In so doing, we might encounter some problems, as the undertaking has never been tried before. We must correctly analyze and properly handle these problems," he added.

He stressed that the key to doing so is to accurately understand and implement the "one country, two systems" principle, act in strict accordance with the Hong Kong and Macao Basic Laws in administration, adhere to "Hong Kong people governing Hong Kong" and "Macao people governing Macao" with patriots as the main body, and achieve the broadest-based unity under the banner of loving the motherland, loving Hong Kong and Loving Macao.

"The more people we can unite with, the better. This is a key conclusion we have drawn from the development since the return of Hong Kong and Macao," Hu pointed out.

He added that "so long as we keep doing so, the long-term prosperity and stability of Hong Kong and Macao will be fully guaranteed, and the cause of 'one country, two systems' will be more successful."

"One country, two systems" successful

President Hu said that the past five years have seen successful implementation of the policy of "one country, two systems" in Macao.

Hu extended congratulations to Edmund Ho Hau Wah, who had just been sworn in as the second chief executive of the Macao SAR, the principal officials of the second-term government and the members of the Executive Council of the Macao SAR.

The president said the central government has acted in strict accordance with the Basic Law and firmly supported the chief executive and the Macao SAR government in their law-based administration without interfering in the affairs within the autonomy of the Macao SAR.

He added that under the Basic Law, the principles of "Macao people governing Macao" and a high degree of autonomy have been fully implemented in the Macao SAR and that all Macao citizens enjoy extensive freedom and democratic rights while fulfilling their due obligations.

The original social and economic systems, the way of life, the cultural traditions and the features of Macao remain unchanged, he noted.

Facts have proved that the principle of "one country, two systems" is entirely justified, and that it has already displayed, and will continue to display, its strong vitality, Hu pointed out.

He said that the past five years have seen Macao society take on a new look. The Macao SAR government, headed by Ho Hau Wah, has worked closely with the people of various circles, made innovative efforts to overcome difficulties and challenges brought about by the Asian financial crisis, a changing external economic environment and the SARS epidemic, and properly resolved a series of major issues crucial for Macao's overall and long-term development.

Hu said that today Macao enjoys social stability, sustained economic growth and a peaceful and contented population. Facts have proved that the Macao people have the wisdom, ability and means to properly administrate, build and develop Macao, he noted.

Upgrading governance

Hu called on the Macao Special Administrative Region (SAR) government to "put the people first" and "constantly improve the level of governance."

"Confucius once said people are the foundation of a nation and when the foundation is firm, the nation can enjoy tranquillity," Hu told the gathering. "It is imperative for the SAR government to firmly establish the concept of serving and benefiting the people and to provide better services to the general public."

Hu asked the Macao SAR government to get closer to the communities, learn about what the people want and lose no time in meeting their needs.

"A democratic and scientific decision-making mechanism should be established and gradually perfected. Administrative and legal reforms should be carried out steadily to make administration more law-based, standardized and effective," he said.

The president also called for a "diligent, clean and efficient" government in the Macao SAR to provide quality services to the public.

Hu also urged the SAR government to give close attention to the betterment of law and order, to the fight against crimes in accordance with law and to the maintenance of a stable social environment.

Economic Dvelopment

Hu urged the Macao government to concentrate resources on promoting a "sustained and healthy economic development" in the special administrative region (SAR).

He said development is of overriding importance and Macao's economy has been booming in recent years.

"But some of the long-standing and underlying problems still linger," Hu said. "We should consider matters carefully before making decisions, consolidate existing advantages while nurturing new areas of economic growth to make development more sustainable."

He suggested that management of the gaming industry be further strengthened and improved and that at the same time efforts be made to promote tourism and other related sectors.

"Macao should take advantage of CEPA (Closer Economic Partnership Agreement) to strengthen cooperation with the mainland,the Pearl River Delta region in particular, for greater effectiveness of the cooperation schemes," he said.

Economic ties between Macao and the international market shoul dalso be expanded to broaden the horizon for development, he added.

Strong Backing

Hu said that facts have proved that the great socialist motherland has always been a reliable backing to Macao's development.

The president said that the past five years have also witnessed increasingly close ties between the Macao Special Administrative Region (SAR) and the mainland of China.

The central government attaches great importance to Macao's development, and gives all-out support to its closer exchanges and cooperation with the mainland in all fields, said the Chinese president.

New policies and measures, including the launching of the Closer Economic Partnership Arrangement (CEPA) between the mainland and Macao, allowing individual citizens from certain mainland regions to travel to Macao, establishing the Zhuhai-Macao cross-border industrial zone, and promoting the cooperation between Guangdong Province and Macao and in the Pearl River Delta have added greater vitality and a broader horizon to Macao's development, the president said.

Hu said that meanwhile, the sense of belonging to the Chinese nation has been further enhanced among Macao compatriots.

With the support of the central government, Macao's external relations, particularly with Portuguese-speaking countries and the European Union, have been further expanded, thus maintaining Macao's status as an international city, he added.

Chinese President Hu Jintao, who is also general secretary of the Central Committee of the Chinese Communist Party and chairman of the CPC Central Military Commission, delivers a speech during a celebration gathering marking the 5th anniversary of Macao's return to the motherland in Macao, south China, on Dec. 20, 2004.

Chinese President Hu Jintao (C front) attends a celebration gathering marking the 5th anniversary of Macao's return to the motherland and the inauguration ceremony of the second-term government of the Macao Special Administrative Region in Macao, south China, on Dec. 20,

Edmund Ho Hau Wah (L), chief executive of the Macao Special Administrative Region (SAR), is sworn into office in front of Chinese President Hu Jintao during a celebration gathering marking the 5th anniversary of Macao's return to the motherland and the inauguration ceremony of the second-term government of the Macao Special Administrative Region in Macao, south China, on Dec. 20, 2004. (Xinhua Photo)

Chinese President Hu Jintao attended the ceremony, where Chief Executive Edmund Ho Hau Wah and principal officials of the Macao SAR government will be sworn into office.

A celebration gathering marking the 5th anniversary of Macao's return to the motherland and the inauguration ceremony of the second-term government of the Macao Special Administrative Region is held in Macao, south China, on Dec. 20, 2004.

A grand flag-raising ceremony to mark the 5th anniversary of Macao's return to the motherland is held in the Macao Special Administrative Region, south China, on Dec. 20, 2004.