1:30 on the morning of July 1. An emotional and momentous ceremony was held on the 7th floor of the Hong Kong Convention and Exhibition Center to inaugurate the HKSAR government. More than 4,000 Chinese and foreign guests and public figures attended the ceremony to witness how the central government implements its policy of "one country, two systems". They included British and American diplomats stationed in Hong Kong.

1:32. President Jiang Zemin rose to his feet, announcing loudly: "Now 1 announce the official establishment of the Hong Kong Special Administrative Region of the People's Republic of China!" This announcement drew prolonged, warm and excited applause.

This was followed by the swearing-in ceremony for the HKSAR government. Administered by Premier Li Peng and witnessed by the central government delegation, Tung Chee Hwa was sworn in as the HKSAR's first chief executive. He raised his right hand and swore in putonghua (standard Chinese pronunciation): "I, upon assuming the office of the chief executive of the Hong Kong Special Administrative Region of the People's Republic of China, pledge to uphold the Basic Law of the HKSAR of the People's Republic of China (PRC), be loyal to the HKSAR of the PRC, fulfill my duties wholeheartedly, abide by laws, be clean and honest, serve the HKSAR, and be responsible for the PRC and the HKSAR." As soon as Tung completed his declaration, Premier Li Peng shook hands with him as a token of congratulation and confidence.

Administered by Premier Li Peng, 23 major HKSAR government officials (headed by Anson Chan) were also sworn.

Administered by Chief Executive Tung Chee Hwa, 14 members of the Executive Council (headed by Chung Sze Yuen), 59 members of the Provisional Legislative Council (headed by President Rita Fan), and the judges of the Court of Final Appeal and the High Court (headed by first Chief Justice Andrew KN Li of the Court of Final Appeal) were also sworn in separately. They read out their declarations in putonghua. As the judges include both Chinese and foreigners, their part was in both putonghua and English. Their oath was about the same in terms of content with that of Tung Chee Hwa, with the exception that the oath of the judges included "safeguarding the rule of law and upholding justice with the spirit of fearlessness, impartiality, selflessness and honesty."

The oath-taking rituals ended in warm applause. Premier Li Peng addressed the ceremony. On behalf of the central people's government of the People's Republic of China, Premier Li expressed warmest congratulation on the inauguration of the HKSAR and the HKSAR government. He hoped the HKSAR government would live up to the expectations of the Chinese, Hong Kong residents included, and scrupulously fulfill its duty placed on it by history and the Chinese nation.

Chief Executive Tung Chee Hwa also took a floor. He said with emotion: "This is a momentous and historic day: July 1, 1997. After 156 years of separation, Hong Kong and China are whole again. This is a solemn, stately, and proud moment. We are here today to announce to the world, in our language, that Hong Kong has entered into a new era." Waving his right fist in the air, Tung continued: "The most precious possession of any nation or any people is the ability to chart one's own future, to be master of one's destiny." He said: "For the first time in history, we, the people of Hong Kong, will be masters of our own destiny." Tung vowed: "I will carry out my duties with honesty, sincerity and determination. I will lead the 6.5 million people of Hong Kong, along with our indomitable spirit, toward the future. As part of China, we will move forward as one inseparable nation with two distinct systems." Tung ended his speech also in warm and prolonged applause.

After the ceremony, central government leaders present on the occasion had a picture taken with the HKSAR government members involved in the oath-taking.

2:45. The Provisional Legislative Council (PLC) held its first plenary session following the establishment of the HKSAR government and the swearing-in ceremony for PLC members. The PLC session adopted the Hong Kong Reunification Ordinance at the third reading. The bill, tabled by Elsie Leung Oi-sie, Secretary of Justice, was immediately endorsed by Chief Executive Tung Chee Hwa and thus became a law for the smooth transfer of people involved in the legal, judiciary and public service.

The HKSAR government is now in smooth operation!