Chinese Premier Wen Jiabao and visiting British Prime Minister Tony Blair held talks at the Great Hall of the People Monday morning.

Premier Wen said he was glad that Sino-UK relations had improved and strengthened continuously over recent years, which is inseparable from Prime Minister Blair's far-sightedness and efforts in developing bilateral relations.

Viewing the visit as a new starting-point, China was willing to join the British side in improving Sino-UK relations, to achieve still faster and greater development, he said.

Blair said he was happy to visit China again. He expressed his belief that the strengthened relationship between Britain and China would, beyond any doubt, continue to develop in economic and political fields.

Economically, he said, Britain is the largest European investor in China, and stronger bilateral relations were conducive to resolving issues of common concern.

The closed-door talks between the two sides indicated candid exchanges in many spheres and much common consensus, Blair said.

He expressed his hope that the two sides could work hard jointly to create a stable, peaceful international environment.

Premier Wen also said that he hoped the trade volume between China and Britain could reach US$15 billion in the future three to five years.

Wen made the remarks when meeting with British entrepreneurs. He said the trade cooperation between China and Britain has a great potential.

The trade volume between the two countries reached US$11.3 billion last year and the target of US$15 billion is probably a conservative figure, Wen said.

He said so far Britain has invested over US$10 billion in China, topping the list of all the European countries and the biggest foreign project in China is also from the British Petroleum and Royal Dutch/Shell Group in Britain.

The Sino-British economic and trade relations, already with a good development momentum, will have a brighter future, he said.

Chinese Premier Wen Jiabao said that facts have proven that the practice of "one country, two systems" has been successful in Hong Kong, and has won international acclaim.

He said he hoped that concerned countries will do more to support Hong Kong's stability and development.

He recalled that in the past more than six years, the Chinese government has, strictly in accordance with the Basic Law of the Hong Kong Special Administrative Region, completely implemented the principles of "one country, two systems", "Hong Kong people governing Hong Kong", and high-degree autonomy.

In these years, Wen said, Hong Kong was hit by the Asian financial crisis, the global economic slowdown and severe acute respiratory syndrome (SARS). However, Hong Kong scored economic stability and development, and Hong Kong people's legal rights and freedom were fully guaranteed.

He stressed that a stable and prosperous Hong Kong is not only in the interest of all Chinese people including Hong Kong compatriots, but also conducive to foreign interests in Hong Kong.

Blair said the implementation of the principle of "one country, two systems" in Hong Kong in the past six years has yielded very good results, which he called "gratifying".

He said that during the implementation of the principle, which was a new concept, it was highly possible for serious problems to emerge. However, such problems did not occur.

Blair pointed out that the British side appreciates the Chinese side's treatment of Hong Kong's recent issues and hopes to find a way to maintain Hong Kong's stability.

(Xinhua News Agency July 21, 2003)