Positive progress: Acting Chief Executive Donald Tsang discusses Hong Kong's latest situation with Chinese People's Political Consultative Conference National Committee Chairman Jia Qinglin in Boao, Hainan.

Hong Kong's social, political and economic conditions have been improving, Acting Chief Executive Donald Tsang says, adding the city's top job is to prepare for the election of the Chief Executive on July 10.

Speaking to the press in Boao, Hainan today, Mr Tsang said he had discussed Hong Kong's latest situation with Chinese People's Political Consultative Conference National Committee Chairman Jia Qinglin.

"Chairman Jia was very happy with what's happening in Hong Kong. He reassured us that the nation is totally committed to 'One Country, Two Systems' and he was very enthusiastic about Hong Kong and was confident that Hong Kong will continue to prosper."

Mr Tsang is confident that the conditions in Hong Kong will continue to improve.

"We have some challenges ahead, but I'm sure with the dedication of the Hong Kong people and the resilience of the Hong Kong people, we will overcome them. Our immediate job is to prepare for the election of the Chief Executive on July 10."

Mr Tsang will give an address on Asian currency tomorrow for the Boao Forum for Asia Annual Conference 2005.

He will also meet the Australian Prime Minister, former Japanese Foreign Minister, People's Bank of China Governor and the Governor of Hainan.