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More than 1,000 dignitaries and VIPs have tonight (Wednesday) returned to the site of the historic Handover Ceremony for a gala banquet to celebrate the 1st Anniversary of the HKSAR.

The Chief Executive, Mr Tung Chee Hwa, hosted the dinner attended by guest of honour President Jiang Zemin, Vice Premier Qian Qichen, senior Chinese and HKSAR Government officials, consular corps and community leaders.

Mr Tung and Mr Qian both spoke at banquet, held in the Grand Hall of the Hong Kong Convention and Exhibition Centre Extension where the HKSAR was 'born' on the stroke of midnight straddling June 30 and July 1, 1997.

Speaking in Putonghua, Mr Tung said: "A year ago, President Jiang solemnly announced to the world the formal establishment of the Hong Kong Special Administrative Region in this very building.

"From that moment onwards, Hong Kong returned to the big family of the motherland.

"I can still remember the hall echoing with prolonged applause because returning home is the most cherished value held by the Chinese people.

"Indeed, we had been away from home for a long period."

Mr Tung said that in the past year a growing number of Hong Kong people had come to realise 'from the bottom of their hearts' the mutual dependence between Hong Kong and the motherland and the importance of the relationship through the implementation of 'One Country, Two Systems' and the fight against the Asian financial turmoil.

He said the strong support from the Mainland during the financial turmoil had 'made us feel more strongly the care and warmth of the big family of our motherland'.

On behalf of all Hong Kong people and the HKSAR Government, Mr Tung extended his heartfelt thanks to President Jiang and the Central Government for their kind support.

"Thanks to the concept of 'One Country, Two Systems', we have the opportunity to meet new challenges that no one generation in the past has ever met, and the opportunity to take part in the great and exciting mission of the revival of the Chinese nation," he said.

"We are now faced with financial difficulties, and the difficulties are considerable. But I believe that with courage, confidence and composure Hong Kong will firmly tide over this difficult time and will have a bright future ahead."

Guests rose to their feet and raised their glasses when Mr Tung proposed three toasts to: the early revival of the Hong Kong economy; the thriving prosperity of our motherland; and, the health of President Jiang and all those present.

The gesture was reciprocated by Vice Premier Qian who also proposed a toast.

During the banquet guests were treated to a fine selection of Chinese fare which included deep-fried crab claws, braised shark's fin with assorted seafood, braised sliced abalone and sea cucumber, braised bean curd skin stuffed with vegetables, fried rice 'Fukien' style, shrimp dumplings in supreme soup and chilled sago cream with honeydew melon.

Following the dinner the Chief Executive stopped off at an anniversary variety show being held at the Happy Valley racecourse.

End/Wednesday, July 1, 1998

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Photo Caption: President Jiang Zemin (right) and the Chief Executive, Mr Tung Chee Hwa, attend the Hong Kong Special Administrative Region first anniversary banquet at the Hong Kong Convention and Exhibition Centre tonight (Wednesday).

Photo Caption: Vice-premier, Mr Qian Qichen (right), and the Chief Executive, Mr Tung Chee Hwa, propose a toast at the Hong Kong Special Administrative Region first anniversary banquet held this (Wednesday) evening at Hong Kong Convention and Exhibition Centre.