At the invitation of the Standing Committee of the National People's Congress, the Chief Executive, Mr Tung Chee Hwa, today attended the opening ceremony of the First Session of the Ninth National People's Congress in Beijing.

Speaking after the ceremony, Mr Tung said he was encouraged by the Report on the Work of the Government delivered by Premier Li Peng at the meeting.

"I am very happy to note the progress and the success our country has attained over the last five years, especially in the economy.

"It has been a period of high economic growth and low inflation. Foreign exchange reserves as well as grain reserves are at historic high levels. These have helped lay a very solid foundation for our country's development in the 21st Century," he said.

Mr Tung noted that the report made positive remarks about the work of the HKSAR since the reunification.

He said: "The Central People's Government has expressed full confidence in the SAR Government and the ability of Hong Kong people to administer Hong Kong. This is very encouraging."

Noting that the report outlined the plans of the Central People's Government's plans for the next five years and beyond, Mr Tung said that sustained growth in the country's development would bring tremendous benefits to Hong Kong.

"It will also have a positive impact on the SAR's recovery from the Asian financial turmoil," he said.

"This, together with our sound fundamentals, will help bring about an even brighter future for Hong Kong," he added.

Mr Tung will have a working dinner tonight with the Director of the Hong Kong and Macao Affairs Office of the State Council, Mr Liao Hui; the Governor of the Guangdong Province, Mr Lu Ruihua; and his deputy, Mr Wang Qishan.

Mr Tung said: "We will discuss matters concerning the establishment of a high level framework between the SAR Government and the Guangdong Provincial Government. As stated in my Policy Address, this body will study and co-ordinate major issues that concern both areas."