A national flag-raising ceremony was held on the square in front of the Potala Palace, marking the beginning of the celebrations. Singing the national anthem, performances of Tibetan dances and joyous drumbeats turned the square into a "sea of happiness" on Thursday.

    "Tibet has achieved marked progress in various social sectors over the past 40 years," said Jia Qinglin, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, at Thursday's celebration ceremony.

    "Tibet is now in its best development period, which features the unity of various ethnic groups, stable social order and local people living and working in peace and contentment," said Jia, whois also chairman of the National Committee of the Chinese People'sPolitical Consultative Conference (CPPCC) and who headed a central delegation attending celebrations marking the founding anniversary of Tibet.

    On Sept. 1, 1965, the Tibet Autonomous Region was established and the regional People's Congress of Tibet, the local legislatureand watchdog of the government, convened its first meeting, opening a new page in Tibet's history: serfs and slaves once oppressed by the heirarchical regime became their own masters with their representatives sitting on the local legislature. The democratic reform in 1959 pulled down the political system combining political and religious power in old Tibet and establishing a people's government in new Tibet.

    "The past 40 years witnessed the fastest development, greatest changes and marked progress in Tibet and it was the period during which local people felt happiest and most satisfied," said Legqog,chairman of the Standing Committee of Tibet Regional People's Congress.

    Government statistics show that Tibet registered a gross domestic product (GDP) of 21.154 billion yuan (2.6 billion US dollars) last year, with the per capita GDP reaching 7,779 yuan (approximately 960 US dollars). The two figures were respectively 65 times and 33 times the figures for 1965. The per capita disposable income for urbanites reached 8,200 yuan (1,011 US dollars) and that for farmers was 1,861 yuan (229 US dollars) last year.

    "Today, we don't worry about food and clothing and we just want that our everyday life is colorful," said Wangqug, a farmer from Xigaze who participated in Thursday's performances on the Potala Palace square. "I'm happy to be here today."

    Wangqug said, "Lhasa (the regional capital) has changed so much that I can not find the former residence of my younger brother!"

    "The change in Lhasa is just like changes of their farmers and herdsmen's life: changes taking place everyday."

    "My family is watching the celebrations on TV," said Zhaxi Pungcog, a farmer from the Shannan area who contacted his family through a mobile phone.

    The 1,142-kilometer-long Qinghai-Tibet railway, the first railway linking Tibet with other parts of China, will be completedthis year and is expected to go into operation next year. The railway is expected to help further boost economic development in Tibet and bring more benefits to local people.