The Chief Executive, Mr Tung Chee Hwa, concluded his three-day duty visit to Beijing and returned to Hong Kong this afternoon.

In Beijing, Mr Tung called on President Jiang Zemin and Premier Li Peng to report duty. He also met with Vice Premiers Qian Qichen and Zhu Rongji.

The Chief Executive briefed Chinese leaders on the situation in Hong Kong since the Handover. He pointed out that it had been business as usual and the economic system had been operating smoothly.

The Special Administrative Region (SAR) Government has drawn up a blueprint to prepare Hong Kong for future developments regarding the economy, political system and people's livelihood. Mr Tung expressed full confidence in the long-term development of Hong Kong.

Mr Tung also mentioned to Chinese leaders the impact the recent financial turmoil in Asia had on Hong Kong and the SAR Government's way of handling the issue.

Chinese leaders were pleased with the development of the SAR and the operation of the SAR Government. They expressed their appreciation for the ability of the SAR Government in handling various issues and support for the way it had dealt with the recent financial turmoil.

Mr Tung said that since its establishment the SAR had truly implemented the policy of "one country, two systems" and "a high degree of autonomy for the territory".

The SAR Government had taken part in a number of international forums since the Handover -- more than 300 using the name "Hong Kong, China" and more than 20 as a member of the Chinese delegation. These forums range from trade, shipping, cultural to economic and other matters, reflecting the smooth implementation of "Hong Kong people running Hong Kong".

During his meetings with Chinese leaders, Mr Tung learnt about the latest developments in China as well as Chinese leaders' full confidence about the country's prospects.

"Bright prospects for China will definitely have a positive impact on the SAR," Mr Tung said.

Mr Tung also took the opportunity of his stay in Beijing to discuss with Mr Liao Hui, Director of the Hong Kong and Macao Affairs Office of the State Council, the liaison and strengthening of co-operation between the SAR and the Mainland.

Ties and co-operation in the following areas will be stepped up:

* More SAR Government officials to visit the Mainland: More SAR Government civil servants will go to the Mainland for visits and study tours. Arrangements will be made for the Chief Secretary for Administration, the Financial Secretary and other principal officials to visit the Mainland in the near future. Also, the SAR Government welcomes visits by Mainland officials and travellers.

* Set up an SAR office in Beijing: The SAR Government will set up an office in Beijing. Preparation work for the office is expected to start in the first quarter of 1998. The Central Government has indicated that it will give the plan full assistance.

* Step up regional co-operation with Guangdong Province: As mentioned in the Policy Address, the SAR Government and the Guangdong Provincial Government, in conjunction with relevant Central Government departments, will establish a high level framework to study and co-ordinate major issues that concern both areas. This high level framework is expected to be set up shortly for its first meeting in the first quarter of 1998.