Last year significant progress was made in the modernization of national defense and the army. The People's Liberation Army played an important role in safeguarding China's sovereignty, security and territorial integrity, supporting its modernization drive, and completing urgent, difficult, dangerous and daunting tasks. In the coming year, we need to make our army more revolutionary, modern and standardized, focusing on enabling it to fully carry out its historic missions in the new stage and in the new century. We will strengthen ideological and political work in the army. We will effectively transform our military training based on mechanized warfare to military training for warfare under conditions of greater IT application, and continue to enhance the army's ability to respond to multiple security threats and accomplish a diverse array of military tasks. We will modernize weapons, equipment and logistics support across the board. We will improve defense-related research, the weapons and equipment production system, the military personnel training system, and the army's logistics support system that integrate civilian with military purposes and combine military efforts with civilian support. We will actively and steadily carry out reform of the army to inject more vigor and vitality into army building. We will intensify the improvement of the People's Armed Police Force to make it better able to carry out its duties, respond to emergencies, combat terrorism and safeguard stability. We will strengthen defense mobilization and reserve forces. We will strengthen and develop unity between the army and the government and between the army and the people.

Fellow Deputies,

We will unswervingly adhere to the principle of "one country, two systems," under which Hong Kong people administer Hong Kong and Macao people administer Macao with a high degree of autonomy, and fully support the Hong Kong and Macao Special Administrative Regions in actively responding to the global financial crisis and maintaining their prosperity and stability. We will increase cooperation between the mainland and the two regions, consolidate Hong Kong's position as an international financial center and promote an appropriate level of diversity in Macao's economy. We will accelerate the pilot program for the mainland, Hong Kong and Macao to use renminbi as the settlement currency for trade in goods. We will constantly deepen and expand cooperation between Guangdong, Hong Kong and Macao. We will accelerate construction of infrastructure such as the Hong Kong-Zhuhai-Macao Bridge, the Hong Kong-Shenzhen Airport Rail Link and the Guangzhou-Shenzhen-Hong Kong Express Rail Link. We will give Hong Kong and Macao greater access to the mainland's service sector. We will adopt effective measures to support development of Hong Kong- and Macao-funded enterprises on the mainland, particularly small and medium-sized enterprises, and help ease their difficulties. The great motherland will always provide strong backing to Hong Kong and Macao. We firmly believe that our compatriots in Hong Kong and Macao will surmount their current difficulties and create an even brighter future.

Last year important progress was made in our Taiwan-related work. Positive changes occurred in the situation in Taiwan, and major breakthroughs were made in cross-Straits relations. Consultations between the two sides of the Taiwan Straits were resumed on the basis of the 1992 Consensus, and complete, direct and two-way mail, transport and trade links were established. The two sides enjoyed more frequent people-to-people exchanges, closer economic ties, more active cultural exchanges and broader common interests. Cross-Straits relations have embarked on the track of peaceful development. In the coming year, we will continue to adhere to the principle of developing cross-Straits relations and promoting peaceful reunification of the motherland. We will remain committed to the goal of peaceful development of cross-Straits relations, and work actively to build a framework for and strive to achieve new progress in the peaceful development of cross-Straits relations. We will continue to comprehensively strengthen cross-Straits economic cooperation to jointly respond to the global financial crisis. We will actively promote financial cooperation across the Straits, support the development of Taiwan-funded enterprises on the mainland, provide financing services for qualified ones, and encourage their independent innovation, transformation and upgrading. We will strengthen two-way investment and industrial cooperation and expand and deepen agricultural cooperation between the two sides. We will support economic development on the west coast of the Straits in Fujian Province and in other areas where Taiwan investment is concentrated. We will accelerate normalization of cross-Straits economic relations and facilitate the signing of a comprehensive agreement on economic cooperation, and gradually establish economic cooperation mechanisms tailored to both sides of the Straits. We will increase contacts between individuals, expand exchanges among all sectors of society, vigorously promote Chinese culture and consolidate the common cultural bonds between the two sides. We will work on the basis of the one-China principle to enhance mutual political trust between the two sides. Based on this, we are ready to make fair and reasonable arrangements through consultation on the issue of Taiwan's participation in the activities of international organizations. We are also ready to hold talks on cross-Straits political and military issues and create conditions for ending the state of hostility and concluding a peace agreement between the two sides of the Taiwan Straits. We are convinced that, with the concerted efforts of the people on both sides of the Straits, we will achieve complete reunification of the motherland and the great rejuvenation of the Chinese nation.

Fellow Deputies,

Significant achievements were made in our diplomatic work last year. We joined hands with the international community in tackling the global financial crisis. We successfully hosted the Asia-Europe Meeting and enhanced mutual political trust and pragmatic cooperation between Asian and European countries. We actively advanced bilateral and multilateral diplomacy, and played a constructive role in global and regional hotspot issues. We stood firm in safeguarding China's sovereignty, security and development interests and in protecting the legitimate rights and interests of Chinese nationals and corporations overseas. Further significant progress was made in carrying out all-round diplomacy, and China's international standing and influence rose to a new height. In the coming year, we will continue to hold high the banner of peace, development and cooperation, adhere to the path of peaceful development and an independent foreign policy of peace, and pursue an open strategy of mutual benefit. We will increase friendly contacts with other countries in the world to create a favorable external environment for the steady and rapid development of China's economy. We will continue to deepen pragmatic cooperation with other parties, work with them to curb the spread of the global financial crisis, promote reform of the international financial system, and oppose trade and investment protectionism, in order to help bring about an early recovery of the world economy. We will continue to take the fundamental interests of the people of China and the world as our starting point and make new contributions to the proper resolution of hotspot issues and global problems. The Chinese Government and people stand ready to work with the governments and peoples of other countries to jointly respond to risks and challenges, share development opportunities, and build a harmonious world of durable peace and common prosperity.

Fellow Deputies,

The tasks we face are arduous and formidable, and the responsibilities we bear are great and glorious. Under the leadership of the Party Central Committee with Comrade Hu Jintao as General Secretary, let us strengthen our conviction for victory, boldly meet challenges, work in a down-to-earth manner and press ahead resolutely to make new achievements worthy of the times, history and the people, carry forward the great cause of reform, opening up and modernization and celebrate the 60th anniversary of the founding of the People's Republic of China.

(Source: www.chinaview.cn)