HONG KONG, June 29 (Xinhua) -- Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said here Thursday that what Hong Kong and Macao have achieved since their return to the motherland fully testifies to the correctness and vitality of the principle of "One Country, Two Systems."

    Addressing the opening of the Forum on Economic and Trade Cooperation and Development between the Chinese Mainland, Hong Kong and Macao, Jia said maintaining and promoting the long-term prosperity, stability and development of Hong Kong and Macao is the fundamental objective of the central government's policies on Hong Kong and Macao.

    Jia reiterated that the central government will unswervingly adhere to the principles of "One Country, Two Systems," "Hong Kong people governing Hong Kong", and "Macao people governing Macao," and a high degree of autonomy.

    He said the central government will continue to firmly support the chief executives and the governments of the two special administrative regions in exercising administration in accordance with the law, and to strengthen and promote exchange and cooperation between the Chinese mainland, Hong Kong and Macao.

    Jia said the signing and implementation of the Closer Economic Partnership Arrangements (CEPA) between the Chinese mainland and Hong Kong and Macao have boosted an all-round economic growth of Hong Kong and Macao. In 2004 and 2005, Hong Kong's GDP increased by 8.6 percent and 7.3 percent respectively, and that of Macao grew by 28.3 percent and 6.7 percent.

    He said the signing and implementation of CEPA have helped the mainland open wider and improve its economic structure. In 2005 trade volume between the mainland and Hong Kong stood at 136.71 billion U.S. dollars, up 56.4 percent from 2003. The mainland registered a total of 14,831 Hong Kong-invested projects in 2005 and Hong Kong will continue to be the biggest source of overseas investment for the mainland.

    He stressed that CEPA has proved to serve as a platform and powerful engine for strengthening economic and trade ties between the Chinese mainland, Hong Kong and Macao.

    He expressed his confidence that the continued implementation of CEPA will surely expand economic and trade cooperation between the mainland, Hong Kong and Macao and inject a strong impetus to the fast yet steady growth of the three economies.

    As for the tripartite cooperation between the mainland, Hong Kong and Macao, Jia said that in recent years, the mainland has taken a series of measures to support Hong Kong and Macao in growing their economies and boost economic cooperation and trade with the two regions, such as implementing CEPA, allowing more mainland residents to visit Hong Kong and Macao, and granting Hong Kong and Macao banks access to Renminbi business.

    He said the Hong Kong Chief Executive would announce the new CEPA measures at the opening of the forum and that the State Council is considering new policies for expanding Renminbi business.

    Jia urged the two SAR governments to sum up both the successful practices and identify problems emerging in the economic cooperation and trade between the three regions since the implementation of CEPA, make full use of the relevant policy incentives within the framework of the current arrangement, and deepen regional cooperation.

    "On the basis of CEPA and other existing cooperation mechanisms, we should improve the mechanism of communication on economic and trade matters between the central government and Hong Kong and Macao SAR governments, making it a long-term, stable and effective mechanism," Jia said.

    He stressed that under the overall coordination of the central government, the relevant central government departments and local governments will strengthen communication and coordination with Hong Kong and Macao SAR governments on policies and specific matters related to economic cooperation and trade.

    At the invitation of the government of the Hong Kong Special Administrative Region (HKSAR), Jia arrived here Tuesday morning for a visit to the HKSAR and for attending activities marking the third anniversary of the signing of CEPA.  Enditem