In a meeting with HKSAR Chief Executive Tung Chee-hwa in Beijing, Zhu said he was sanguine that HK still has the capacity to overcome the current economic difficulties.

Tung was in Beijing to deliver his annual report to the central government.

Premier Zhu also earlier in the day met Edmund Ho Haw Wah, chief executive of Macao Special Administrative Region who was also in Beijing to report work in his region.

"HK still claims many advantages that can buoy its economic strength and competitiveness,'' said Zhu.

Zhu credited Tung Monday by acknowledging that under his governance, in the past five years, since HK's handover from British rule, the region has maintained stability against the odds, given the Asian financial crisis of 1997 and the adverse impact of external economic changes.

The current global slowdown on trade and business is being felt by HK, one of the financial hubs in Asia Pacific and one of the most dynamic economic activities in the region.

"Despite all of these difficulties, the HK people have managed to maintain the SAR's position as an international trade, finance and shipping centre,'' said Zhu.

Tung responded to Zhu's encouragement and endorsements by saying that the central government had done much to maintain HK's prosperity and stability during the worst period of financial turmoil.

He went on to say that Beijing's commitment not to devalue renminbi had served as the most solid back-up for HK when it was faced with the repercussions of the global financial crisis.

In his meeting with Ho, Zhu said that he hoped Macao could gradually improve its industrial structure and forge roads into other business areas as a way to promote the overall advance of both its economy and society.

Ho expressed his gratitude to Zhu for his commitment and support of Macao.

(China Daily December 10, 2002)