Briefing the media after a one-hour meeting with Zhu at Zhongnanhai in Beijing Thursday, Tsang said he was thankful that Zhu had shown strong support and encouragement for Hong Kong's economy.

Tsang quoted Zhu as saying: "I believe Hong Kong can successfully overcome the temporary hardship, as it has strong bases."

Zhu said Hong Kong still had its advantages in comparison to the Chinese mainland, including a complete legal system, a free market, a good civil-service system, and an atmosphere of freedom.

If Hong Kong keeps these advantages, it will be easier to overcome the current economic difficulties, Zhu said.

Tsang was on a five-day duty report trip to Beijing.

When meeting Zhu Thursday, Tsang told Zhu that Hong Kong people were now undergoing a painful restructuring period.

Hong Kong's economy is bleeding badly as the world economy has yet to emerge from one of its worst periods.

The latest statistics released by the Hong Kong Special Administrative Region (SAR) Government Thursday showed that the jobless rate in the past three months had reached a record high of 6.7 percent.

The army of the unemployed has grown to 219,000 people, 10,000 more than the previous quarter.

Tsang added: "But I think Hong Kong people's flexibility and zeal to work hard remain.

"The common people, the legislature and the SAR Government are working together to make a better Hong Kong and help its economy to recover more quickly."

Tsang also told Zhu how Hong Kong has been co-operating with the Pearl River Delta areas to achieve a win-win situation.

Zhu said it was wise for Hong Kong to look to the Pearl River areas, as these areas were a precious region where the infrastructure and other facilities were developing well.

The central government will support Hong Kong as much as possible in its development of the Pearl River Delta areas, said Zhu.

(China Daily February 22, 2002)