Jiang spoke highly of the performance of Tung as first chief executive of HKSAR and hoped Tung will lead the HKSAR government and the people of HK in overcoming temporary difficulties and creating a better future during his possible second term.

The decision was made after the central government had in-depth discussions about the proposals put forward by Tung, said the president.

Tung, chief executive of the Hong Kong Special Administrative Region (SAR) came to Beijing to report his work to the central government.

After being briefed by Tung about the recent situation in Hong Kong, Jiang said that the central government has been very much concerned about Hong Kong's economic difficulties and their impact on Hong Kong residents.

Maintaining prosperity and stability in Hong Kong has been an important factor of the constant successes of the "One Country, Two Systems" cause, which in the long run, is in the interests of not only Hong Kong, but also China as a whole, he said.

The president spoke highly of the performance of Tung as first chief executive of HKSAR in the past four or so years.

· Implementation of "One Country, Two Systems" Policy

Tung has contributed a great deal to the full implementation of the policy of "One Country, Two Systems" and the Basic Law of the region, Jiang said.

· Economic, Financial & Social Stability

Under the leadership of Tung, HKSAR government has correctly handled a number of events and problems of great political, economic and social significance to Hong Kong and thus maintained the stability in the region, said the president.

Jiang said that that Tung and his Hong Kong government have worked to become stronger when faced with the Asian financial crisis and outside economic changes.

· HK's Status as Intl' Financial, Trading, Shipping Center

Jiang said Tung and the Hong Kong government have worked hard to promote the recovery and expansion of the Hong Kong economy, economic cooperation with the Chinese mainland and to develop wide contact and exchanges with the international communities, which have helped maintain Hong Kong's status as an international financial, trading and shipping center.

Tung as the chief executive has stood the test of various storms and is capable of handling complicated situations, Jiang said.

The president told Tung that he has the full confidence in the central government, which has been very satisfied with his administration, and will continue to support him.

Jiang also expressed his appreciation of the speech made by Tung a few days ago announcing he would stand for a second term in office, saying his decision to stand for re-election is a brave commitment to both Hong Kong and the cause of "One Country, Two Systems".

During his possible second term as chief executive of HKSAR, Jiang hopes Tung will lead the HKSAR government and the people of Hong Kong in overcoming temporary difficulties and creating a better future for Hong Kong.

Among those present at the meeting were Vice-Premier Qian Qichen and other senior officials.

(People's Daily December 20, 2001)