"The great motherland will forever be a strong force behind Macao," Chinese President Jiang Zemin said today, noting that the Central Government is fully confident in and gives all-out support to the Chief Executive Ho Hau Wah and the government of Macao Special Administrative Region(SAR) under his leadership.

Speaking at a ceremony marking the establishment of the Macao SAR here this morning, Jiang reiterated that the Central Government will carry out the policies of "one country, two systems," "Macao people administrating Macao" and high degree of autonomy in the Macao SAR and ensure that the social and economic systems and the life-style of Macao remain basically unchanged.

The celebration ceremony, held by the Macao SAR government in the Macao Forum, drew some 3,000 guests, including members of the Chinese Central Government Delegation led by Jiang Zemin, representatives from all walks of life in Macao, Hong Kong and Taiwan as well as dignitaries from across the world.

In the early morning today, the Chinese and Portuguese governments held the ceremony for the transfer of power of Macao which was followed by the inauguration ceremony of the Macao SAR and the swearing-in of the Macao SAR government held by the Chinese government.

When Jiang and the central government delegation, accompanied by Chief Executive Ho Hau Wah and other principal officials of the Macao SAR government, walked into the venue for the ceremony at 10:00, they were accorded a prolonged applause.

The celebration ceremony began amid the tune of the National Anthem of China. President Jiang, in his speech, expressed warm congratulations on the return of Macao to the motherland and the establishment of the Macao SAR.

He said that Macao has been Chinese territory since ancient times and that the Chinese people fought dauntlessly for the return of Macao, a sacred territory of China.

"Our thriving socialist motherland has been the primary force behind the epoch-making change in Macao's status," he said. "

Macao's return is also a great victory in the cause of world peace and justice."

He noted that the principle of "one country, two systems" initiated by late Chinese leader Deng Xiaoping has pointed out the right road for the settlement of the questions of Hong Kong, Macao and Taiwan.

"The successful return of Macao is yet another historic monument built by the Chinese people on the road to national reunification following the return of Hong Kong," he said.

"The Chinese government and people will continue with their efforts to accomplish the great cause of the reunification of the motherland in line with the policies of "peaceful reunification" and "one country, two systems," he stressed.

Jiang said the successful implementation of "one country, two systems" in Hong Kong and Macao will give a positive push to the early settlement of the Taiwan question.

Ho Hau Wah, the first Chief Executive of the Macao SAR elected by local residents, also made a speech.

"The establishment of the Macao Special Administrative Region signifies a new era and new identity for the people of Macao. They will now run their own affairs as masters of their own destiny," Ho said.

He said that the continued stability and prosperity of Macao after the handover and the successful implementation of the "one country, two systems" principle will have a vital influence on the cause of reunification in China.

"I uphold that it is essential for the Macao SAR government to implement firmly the Basic Law by carrying out all the policies and measures in accordance with the fundamental principle of 'one country, two systems'," he noted.

He promises that the Macao SAR government will be open and democratic and serve the people of Macao wholeheartedly. He held

that the most important tasks facing the Macao SAR government are to promote economic growth and to protect the safety and stability of Macao.

At the ceremony, the central government transferred the Land Fund of the Macao SAR to the SAR government and also presented a Macao regional flag to the SAR government. Chinese Vice-Premier Qian Qichen handed the certificate of the Land Fund to Ho Hau Wah on behalf of the central government.

The land fund, which has amounted to 9.995 billion patacas, is the money that belongs to the Macao SAR government, and had been kept and managed by the Chinese Delegation of the Sino-Portuguese Land Group before the establishment of the Macao SAR government according to relevant documents of the Sino-Portuguese Joint Declaration.

The Macao regional flag, a gift from the Central Government, and a national flag of China, have been sent to the outer space along with "Shenzhou," China's first spaceship launched on November 21.

Presenting gifts to Macao SAR by the central government and the 31 provinces, autonomous regions, municipalities directly under the Central Government and the Hong Kong SAR was another important item on today's celebration agenda.

As the list of gifts was announced at the ceremony, photos of the gifts were shown on two big screens at both sides of the gathering hall. The lotus sculpture presented by the Central Government drew warm applause from the audience.

Later, artists from all over China presented wonderful theatrical performances. At the end of the performance, President Jiang, Vice-Premier Qian and the Chief Executive Ho Hau Wah went onto the stage to shake hands with the artists.

Then Jiang presented the Macao SAR with a calligraphy scroll on which he wrote: "Ushering in a new era for Macao."

The curtain fell for the celebration ceremony at the Macao Forum, yet other celebration activities are still going on in the Macao Peninsula, and the islands of Taipa and Coloane.