The central government would not change its policy towards Hong Kong as it treasures the principle of "One Country, Two Systems" like "a diamond", a senior mainland official said yesterday.

Yang Wenchang, commissioner of the Ministry of Foreign Affairs in Hong Kong, said this in a luncheon speech to the American Chamber of Commerce (AmCham).

Aware of the doubts over the central government's Hong Kong policy, Yang said: "I would like to tell you that 'One Country, Two Systems' is a diamond we have found ourselves and we cherish it so much. It is not a dirty stone that you can throw away as you please."

Hong Kong is the most important financial and business centre in the Far East and a gateway to the mainland market, he said.

He expressed the hope that people would share his views that a "healthy and orderly pace" for the political development in the SAR would benefit its business environment and serve the interests of China and the United States.

On the July 1 procession, Yang said the Basic Law has guaranteed the right of Hong Kong people to demonstrate peacefully. He hoped the demonstration would not create more tension in society.

When asked if the SAR would become unstable, as up to 300,000 people may turn out in the mass rally as predicted by a recent poll, Yang said: "Wasn't the number higher last year? Hong Kong hasn't become unstable."

On the issue of home visit permits, he commented - without referring to individual cases - that everyone would be able to get a permit and it was only a matter of time.

In his luncheon speech, the commissioner also talked about Sino-US relations which he believed were still marred by the Taiwan question, trade disputes and human rights.

"The Taiwan issue is the most important one," Yang said. "The Taiwan question is a matter concerning China's sovereignty and territorial integrity. It bears closely on the national feelings of 1.3 billion Chinese people."

He said that safeguarding sovereignty and territorial integrity constitute supreme national interests for any country.

He said that while the Chinese Government would strive for peaceful reunification with utmost sincerity and maximum efforts, it is firmly opposed to any form of separatist activities and would never allow anybody to separate Taiwan from China in any form.

Yang called on Washington to stop arms sales to Taiwan.

On trade disputes, Yang said it was unfair for the US to blame China's trade surplus for causing unemployment in the US.

He said that China's exports to the US were complementary to the US economy rather than competitive because most Chinese exports to the US are what American manufacturers no longer produce.

He called on the US to ease restrictions on sales of high-technology products to China.

(HK Edition 06/29/2004 page2)