President Jiang Zemin declares the establishment of the Macao Special Administrative Region (MSAR) in Macao on the early morning of December 20. Shortly afterwards, the MSAR Government, which is formed of Macao inhabitants and headed by Chief Executive Edmund Ho Hau Wah, is sworn into office.

Macao has followed Hong Kong to become the second special administrative region in China, under the concept of "one country, two systems," a brainchild of the late Chinese leader Deng Xiaoping.

At 1:43, the ceremony for the founding of the Macao Special Administrative Region (MSAR) and the swearing-in of the MSAR Government starts at the Forum, Macao. As China's national anthem subsides, Jiang Zemin announces, "The Macao Special Administrative Region of the People's Republic of China is now established." It arouses thunderous applause in the hall.

Two years ago, it is Jiang who declared the founding of the Hong Kong Special Administrative Region (HKSAR). The successful operation of the two-year-old HKSAR has convinced people that Macao has a bright future.

At around 1:50, the swearing-in ceremony for the MSAR Government begins. Under the supervision of Premier Zhu Rongji, Edmund Ho Hau Wah, the first chief executive of the MSAR, facing the Chinese national flag and the MSAR regional flag and raising his right hand, pledges "to uphold the Basic Law of the Macao Special Administrative Region of the People's Republic of China, be loyal to the Macao Special Administrative Region of the People's Republic of China, fulfill my duties wholeheartedly, abide by the law, be clean and honest, work hard for the stability and development of Macao, and be responsible for the Central People's Government and the Macao Special Administrative Region."

There arises thunderous applause again. Premier Zhu Rongji shakes hands with Ho and extends his congratulations on the latter'sassumption of office.

After that, Chief Executive Edmund Ho Hau Wah supervises the oath-taking, group by group, of the principal officials of the MSAR, members of the Executive Council, members of the Legislative Council, judges and procurators of the MSAR.

Thus in Macao, ruled by the Portuguese for a long period of time, has come into being a democratic political system under the principles of "one country, two systems", "Macao people administering Macao," and "a high degree of autonomy" for Macao.

In a speech he made following the swearing-in, Premier Zhu Rongji says that the return of Macao and the establishment of the MSAR is another historic achievement the Chinese people have made in their lofty cause of seeking a complete reunification of their motherland, and that the central government will give full support to Ho and the MSAR Government under his leadership. Macao will have an even more splendid future, he says.

In his speech, the first chief executive of the MSAR expresses full confidence in the future of Macao, saying, "Macao's return to China is an important step in the process of, and great progress towards, the ultimate reunification of our motherland."

He pledges, "In the years to come, I will work tirelessly and resolutely to uphold and implement the principle of 'one country, two systems' in accordance with the Basic Law, and to lead Macao's 400,000-odd citizens towards a bright and prosperous future."

The ceremony is presided over by Vice-Premier Qian Qichen and witnessed by a big number of people, including dignitaries of foreign countries and regions, representatives of international organizations, representatives of overseas Chinese and foreigners of Chinese origin. Hundreds of millions of people in different parts of the world watch the live telecast of the ceremony.

The ceremony concludes amid the sound of festive music.

China is thus one major step closer to its ultimate reunification.