"We shall have confidence in China's economic development," said the premier.

Tibet riot

On March 14, violence involving beating, destruction of property, looting and arson broke out in Lhasa. In the incident, cruel rioters injured, or even killed innocent people on the street by extremely crude means, smashed out vehicles and public facilities, torched private houses, stores and schools, Wen said.

"This incident has seriously disrupted order in Lhasa and inflicted heavy losses of lives and property for the people," he said.

There are ample facts and there is plenty of evidence to prove that the recent riot in Lhasa was organized, premeditated, masterminded and incited by the Dalai Lama clique. The consistent claims made by the Dalai clique that they pursue not independence but peaceful dialogue are "nothing but lies," said Wen.

"The local government and related departments have been strictly keeping with the Constitution and laws, and have excised extreme restraint," he said, adding that the local government has taken proper measures to quiet down the incident and protected the interests of the people in Lhasa and in Tibet.

He said since the peaceful liberation and especially the democratic reforms in Tibet, the region has moved forward and become more developed. "Those claims that the Chinese Government is engaged in so-called ‘cultural genocide' are nothing but lies," he said.

The Chinese Government is fully capable of maintaining stability and order in Tibet, and at the same time will continue to support economic and social development, improve the livelihood of all ethnic groups, and protect the culture and environment in the region. "We will never waver in this position," he said.

Wen also said that the door of dialogue still remains opens to the Dalai Lama so long as he gives up the position for "Tibet Independence."

Taiwan question

Admitting that the situation in Taiwan is "in a sensitive stage," at the present time, the premier said what concerns him most is to maintain peace and stability across the Taiwan Straits and promote common development on both sides.

This should be the mainstream and main chord in growing cross-straits relations, he said.

The "referendum on joining the United Nations under the name of Taiwan" will deny the reality that Taiwan and the mainland belong to one China, he said. It will jeopardize relations across the Taiwan Straits, harm the fundamental interests of people on both sides, and threaten peace across the straits and even in the Asia-Pacific region, he said.

Premier Wen reiterated that all issues concerning China's sovereignty and territorial integrity should be decided by all Chinese people, including our Taiwan compatriots. "No one could ever succeed in the attempt to separate Taiwan from China and such kind of attempts is doomed to fail," he said.

On the precondition of one China, the mainland hopes to restore peace talks as soon as possible, he said.

"In such negotiations, whatever topics could be put on the table, including such significant issues as putting an end to the state of hostility between the two sides."

Cross-straits trade

"We will continue to increase economic and trade exchanges with Taiwan, particularly we want to resume the ‘three direct links' between the two sides as quickly as possible," said Wen.

"To serve the interests of people in Taiwan, we are even ready to make necessary sacrifices," Wen said. "For example, Taiwan has been running a huge trade surplus with the mainland for many years. In 2007, trade between the mainland and Taiwan stood at $120 billion, with Taiwan having a surplus of over $70 billion," he added.

However, more than 2,000 products from the mainland are still forbidden to enter Taiwan's market. In despite of this, the mainland has continued to give market access to products from Taiwan, including agricultural products, said the premier.

Taiwan has also imposed restrictions on investment from mainland, while more than 70,000 Taiwan enterprises have entered the mainland market, bringing a total investment of $48 billion. If the investment through the third party was included, the figure was over $70 billion, Wen said.

He said the mainland will continue to expand the scope of economic exchanges with Taiwan in such fields as investment, trade, tourism and finance for mutually beneficial cooperation.

Government work

Premier Wen said, "While we continue strengthening economic adjustment and market regulation, we'll pay much more attention to social management and public service."

Government work should also be open and transparent. "Only when the government understands the needs at the grassroots can the government make progress. Only when the people know what the government really does can they offer stronger support and more constructive criticism," he said.

Wen added that the government will also promote public finance reform, so that public finance can help readjust the economic structure, change the economic growth pattern, and improve the people's livelihood as well as the environment protection.

The premier said that he was resolved to press ahead with public finance reform in his five-year tenure so that the people's money could be better spent to serve the people's needs.