Ladies and Gentlemen,
Fellow Compatriots,


Today is a day of nationwide celebration for the people of all ethnic groups in China, including our compatriots in Macao. The Governments of China and Portugal have held the ceremony for the transfer of government of Macao. The Chinese Government has solemnly declared its resumption of the exercise of sovereignty over Macao and the official establishment of the Macao Special Administrative Region (Macao SAR) of the People's Republic of China. It signifies that Macao has entered on a new era in its development and that henceforth our Macao compatriots will be the masters of this land. This great event of the Chinese nation will shine forever in the annals of history.

At this solemn historical moment, I would like to extend, on behalf of the Central People's Government and the people of all ethnic groups in China, warm congratulations on the establishment of the Macao Special Administrative Region, cordial greetings to our Macao compatriots who are now back in the big family of the motherland, and sincere gratitude to all our compatriots at home and overseas who have contributed to the return of Macao. I would also like to express, on behalf of the Chinese Government, appreciation to all the foreign friends who care for and support Macao's return. I wish to extend our warm welcome to the honored guests and friends from various countries who are present at this ceremony.

At this solemn historical moment, we deeply cherish the memory of Mr. Deng Xiaoping. It was he who initiated the principle of "one country, two systems" with great political vision and extraordinary wisdom, pointing out the right road for the settlement of the questions of Hong Kong, Macao and Taiwan. The successful return of Macao is yet another historic monument built by the Chinese people on the road to national reunification following the return of Hong Kong.

Macao has been Chinese territory since ancient times. The Chinese people fought dauntlessly for the return of Macao, a sacred territory of the motherland. Although Macao was long separated from the motherland, the bond of flesh and blood and the overall national interests have always linked our Macao compatriots closely with the people of the rest of the country. Our thriving socialist motherland has been the primary force behind the epoch-making change in Macao's status. Macao's return is also a great victory in the cause of world peace and justice. It proves once again that no force on earth will stop the historical trend to the progress of mankind.

The Governments of China and Portugal have settled the question of Macao through negotiations. This political decision is a wise move that conforms to the needs of the times. Here I would like to thank all the people both in and out of the Portuguese Government who have made efforts for the settlement of the Macao question. The successful settlement of the Macao question has provided a new historical starting point from where the friendship between the Chinese and Portuguese people will grow further in the 21st century.

After the Chinese Government resumes the exercise of sovereignty over Macao, the existing capitalist system in Macao will continue to be practised, the current social and economic systems will remain unchanged, and so will the life-style. The laws will remain basically unchanged and the right of private ownership will be protected by law. As a special administrative region of the People's Republic of China, Macao will enjoy a high degree of autonomy as provided for in the Basic Law of Macao SAR, such as executive, legislative and independent judicial power, including that of final adjudication, except in foreign and defence affairs which are the responsibilities of the Central People's Government. The interests of the inhabitants of Portuguese descent in Macao will be protected by law, and their customs and cultural traditions will be respected. There are many foreigners living in Macao. Macao SAR will continue to be their home where they can live and work in peace and contentment. In tomorrow's Macao, all the residents, irrespective of their race and color, will have opportunities to compete as equals, and everyone will enjoy the rights and freedoms as guaranteed by law.

After the Chinese Government resumes the exercise of sovereignty over Macao, the Macao SAR will remain a free port and a separate customs territory. Using the name of "Macao, China", it may on its own maintain and develop economic relations with states and regions and relevant international organizations. The Macao SAR will continue to have independent finances and practise an independent taxation system. The Central Government will not levy taxes on Macao. The Macao SAR will on its own decide policies, in accordance with the law, in the fields such as the economy, trade, finance and money, education, medical and health services, science and technology, culture and religion, and also decide policies on tourism and recreation in the light of its local overall interests. The economic and trade activities and the investment interests of states and regions in Macao will be protected in accordance with the law.

The Central Government's policies and principles regarding Macao and all the provisions of the Basic Law of the Macao Special Administrative Region fully conform to the fundamental interests of the country, including Macao, benefit investors of all countries and are the basic guarantee for Macao's long-term stable development. This Basic Law is a law of a constitutional nature for Macao and also a law for the whole nation. Not only Macao should observe the law, but the whole nation should observe it as well. The departments of the Central Government and the local authorities across the country will not, and will not be allowed to, interfere in the affairs which should be administered by the Macao SAR on its own as provided for by the Basic Law.

I wish to offer my heartfelt congratulations to Mr. Ho Hau Wah, the first Chief Executive of Macao SAR, who has been sworn into office today. The Central Government is fully confident in and gives all-out support to the Chief Executive and the SAR Government under his leadership.

Our Macao compatriots have played an important role both in the struggles waged by the Chinese people for national liberation and in China's modernization drive. They have been actively involved in affairs in the transitional period and made valuable contributions to the smooth return of Macao to the motherland. We firmly believe that they will carry forward the glorious tradition of loving the country and loving Macao and make even greater contributions to maintaining long-term stability and development of Macao and safeguarding the fundamental interests of the country and the nation.

The great motherland will forever be a strong force behind Macao. Since the founding of New China, the people on the mainland have always cared for and supported the stability and development of Macao. The ties between Macao and the mainland have been growing ever closer. After its return, Macao will continue to strengthen its role as an important bridge linking China and other countries and regions and as a window open to the outside world. A stable social environment is a primary condition for economic growth and a happy life for the people. The Central Government will resolutely support all the necessary measures the Macao SAR Government adopts for the maintenance of social stability in Macao. I am confident that with the support of the Central Government and the 1.2 billion people in China, the people in Macao under the leadership of the Macao SAR Government will work harder in a pioneering spirit and go on making progress so as to build a better future for Macao.

The first rays of the 21st century are on the horizon. The Chinese Government and people will continue with their efforts to accomplish the great cause of the reunification of the motherland in line with the policies of "peaceful reunification" and "one country, two systems". The successful implementation of "one country, two systems" in Hong Kong and Macao will give a positive push to the early settlement of the Taiwan question. The Chinese people of all ethnic groups and all patriots who support national reunification and care for China's reconstruction will work in concerted efforts and contribute to turning China into a strong, prosperous, democratic and culturally advanced modern country and bringing about the great reunification of the Chinese nation. The world of tomorrow should be one of lasting peace and common progress and prosperity of all countries. The Chinese people are ready to work unremittingly with the people of other countries for a beautiful future of the world.

Thank you.