The meeting was presided over by Wu Bangguo, an executive chairman of the presidium of the session.

Other top leaders present include Jiang Zemin, Hu Jintao, Li Peng, Li Ruihuan, Li Lanqing, Wen Jiabao, Jia Qinglin, Zeng Qinghong, Huang Ju, Wu Guanzheng, Li Changchun and Luo Gan.

The session, a major event after the convocation of the 16th National Congress of the Communist Party of China, is to witness a change in the leadership of the state and government, and has thus become the focus of public attention.

In his 40-page report, which falls in two parts in about 23,000 Chinese characters, Zhu reviewed the achievements the government made over the past five years and put forward proposals on this year's government work.

The premier said that over the past five years since the current government took office, China's economy maintained good growth momentum, and important advances were made in the strategic restructuring of the economy.

China's scientific and technological innovativeness improved noticeably, and education developed vigorously in the past five years, Zhu said.

The reform and opening up achieved many breakthroughs, and the basis of a socialist market economy was established, he said, noting that China had succeeded in improving the people's standard of living and in establishing on the whole a relatively affluent society in the past five years.

While "outstanding" achievements were scored in building socialist democracy and promoting socialist spiritual civilization, national defense and army building made new strides.

The premier attributed the above achievements to the efforts of this government in nine aspects as follows:

-- implementing the proactive fiscal policy and the prudent monetary policy;

-- working hard to improve the quality and efficiency of economic growth;

-- consolidating the position of agriculture as the foundation of the national economy;

-- effectively strengthening reemployment work and development of the social security system;

-- actively participating in international economic and technological cooperation and competition;

-- raising the nation's scientific and technological capability for innovation and improving the overall quality of the population;

-- promoting a coordinated development of the economy, population, resources and the environment;

-- doing everything possible to maintain social stability and creating a favorable environment for reform and development; and

-- endeavoring to build a clean, diligent, efficient and pragmatic government.

Zhu also made some proposals on the government work this year as follows:

-- to continue to follow the policy of expanding domestic demand, and earnestly promote economic restructuring;

-- to give more support to the development of the western region;

-- to promote all-round development of agriculture and the rural economy with priority given to raising farmers' income;

-- to continue deepening economic restructuring and open still wider to the outside world;

-- to improve the work of job creation and social security;

-- to implement the strategy of realizing national rejuvenation through science, technology and education and the strategy of sustainable development; and

-- to make further efforts to earnestly improve the government itself, and strengthen the building of socialist democracy, the legal system and spiritual civilization.

"Maintaining the prosperity, stability and development in Hong Kong and Macao is an unshakable goal of ours," Zhu said.

The mainland must implement the basic principles of "peaceful reunification" and "one country, two systems" and the eight-point proposal for the settlement of the Taiwan question, strive for an early resumption of dialogue and negotiation between the two sides of the Taiwan Straits on the basis of the one-China principle.

As for the work of foreign affairs, Zhu said China will unswervingly pursue an independent foreign policy of peace.

China will continue to consolidate and strengthen its solidarity and cooperation with other developing countries, continue to cultivate friendly ties with its neighbors, increase regional cooperation and bring its exchanges and cooperation with neighboring countries to a new high.

China will continue to improve and develop its relations with developed countries and, on the basis of the Five Principles of Peaceful Coexistence, broaden the area of common interests and appropriately iron out differences.

The premier said China will continue to take an active part in multilateral diplomacy and promote democracy in international relations and diversity in development models.

"We remain opposed to all forms of hegemonism and power politics and stand against terrorism in all its manifestations," Zhu said.

Zhu's report won enthusiastic applause from among the deputies and observers attending the opening meeting.

More than 2000 members of the National Committee of the Chinese People's Political Consultative Conference, diplomatic envoys from 124 countries and representatives of international organizations heard Zhu's report.

The meeting attracted some 2,000 Chinese and foreign reporters. It was also televised live by major Chinese media such as the China National Radio, the China Central Television, the China Radio International and Xinhuanet.com.

According to the agenda of the session, the deputies will elect the new state president, chairman of the Central Military Commission of the People's Republic of China, NPC Standing Committee chairman, president of the Supreme People's Court and procurator-general of the Supreme People's Procuratorate, and decide on the candidates for the premier and members of the State Council, or the Chinese cabinet.

The deputies will also deliberate a package of organizational reform submitted by the State Council.

(Xinhua News Agency March 5, 2003)