The Chief Executive, Mr Tung Chee Hwa, today had a meeting with the visiting Vice President of the European Parliament, Mr David Martin.

At the meeting, Mr Tung briefed Mr Martin on latest developments in Hong Kong, including the Budget, focus on quality education and the Legislative Council elections in May.

Mr Tung told Mr Martin that Hong Kong had been carrying on with the development of democracy in the SAR in accordance with the Basic Law.

"The Basic Law has set out a 10-year timetable for elections both for the Chief Executive and for the Legislature. The first Legislature Council elected in May this year will have 60 members, all of whom will be elected directly or indirectly," he said.

Mr Tung said that Hong Kong people would have an increasingly larger voice in the selection of the Chief Executive.

The Chief Executive added that the Basic Law provided that further democratic evolution after 2007 would depend on the wishes of Hong Kong people with universal suffrage being the ultimate objective.

Mr Tung and Mr Martin also exchanged views on Hong Kong and European Union issues.

Mr Martin expressed support for Hong Kong's case in lobbying for visa-free access for HKSAR passport holders. Mr Martin, who visited the Immigration Department yesterday, said he was impressed by the fool-proof system of the issue of HKSAR passports.

On the Euro, Mr Tung said: "From my recent meetings with European political leaders, I am impressed by the convergence of EU member states on introducing the Euro.

"They have a clear direction and purpose on the introduction of the single currency."