"With seven years' experience in implementing 'One Country, Two Systems', we will be able to continue striding ahead. We are confident that Hong Kong will emerge stronger from any challenges in the future," said Hong Kong Chief Executive Tung Chee Hwa in Hong Kong Thursday.

Speaking at a reception marking the seventh anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR), Tung said "It is with joy that we celebrate a new phase of historical development. It is with joy that we celebrate the successful implementation of 'One Country, Two Systems'. It is with joy that we celebrate our new identity as we strive for the advancement of Hong Kong and Chinese mainland."

Tung said the government has indeed improved its governance though there are still inadequacies that need further improvement.

"Taking forward constitutional development towards democracy in a gradual and orderly manner in accordance with the Basic Law, with the ultimate aim of practicing universal suffrage, is our common goal. Despite the strong rebound of the economy, many have not benefited and livelihood has yet to improve. So we must give our utmost to sustain growth to ensure successful economic restructuring," Tung said.

He said that Hong Kong is blessed to be back with the motherland as the Chinese mainland takes off.

"Seven years on, we take pride in every remarkable achievement our mother country has made. We appreciate the earnest care and strong support it bestows on us. Our future is closely linked with the revival and advancement of the entire nation. It is our common goal and duty to maintain a healthy relationship between Hong Kong and the mainland," He said.

Director of the Liaison Office of the Central People's Government in the HKSAR Gao Siren, Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in Hong Kong Yang Wenchang and Commander of the People's Liberation Army Garrison in Hong Kong Wang Jitang, Hong Kong's Chief Secretary for Administration Donald Tsang, Financial Secretary Henry Tang and Secretary for Justice Elsie Leung attended the reception. A flag raising ceremony was held earlier Thursday morning as one of the special programs for marking the seventh anniversary of Hong Kong's return to the motherland.

Over 3,000 people attended the national flag and HKSAR flag raising ceremony.

(Xinhua News Agency July 1, 2004)