President Jiang Zemin met with Chief Executive Tung Chee-hwa of the Hong Kong Special Administrative Region (SAR) in Beijing on November 22, who is here to report to the central government. Jiang noted that since Hong Kong's return to the motherland over two years ago, the overall situation there has been good and continues to improve.

Under the leadership of Mr. Tung, the Hong Kong SAR government has led Hong Kong residents to deal calmly with the impact of the Asian financial crisis and related problems, he noted.

Now, Hong Kong has overcome the most difficult period, and "we have every confidence in Hong Kong's future," the Chinese president said.

Jiang said that the reason behind the success of the "one country, two systems" principle in Hong Kong lies in the fact that the central government, the people, and especially the Hong Kong compatriots, have a firm belief in it.

Only when the principle of "one country, two systems" is upheld can Hong Kong's stability and prosperity be guaranteed, Jiang said, adding that it is also in the best interest of the majority of the Chinese people.

Jiang expressed the belief that "one country, two systems" will achieve huge success in the Macao SAR, just as it has done in Hong Kong.

During the meeting, Jiang noted that the proper handling of Hong Kong affairs calls for the unity of Hong Kong compatriots on the basis of the Basic Law.

The Chinese president also voiced his belief that under Mr. Tung's leadership, Hong Kong will achieve greater developments in the coming year.

Chinese Vice Premier Qian Qichen and Director Liao Hui of the State Council's Hong Kong and Macao Affairs Office were present at the meeting.