All rise: Chief Executive Donald Tsang and guests raise a toast at the National Day reception.

Chief Executive Donald Tsang says the Government will improve governance and promote economic growth and social harmony, and urged the public to embrace Hong Kong's new development with an open mind.

Speaking at a reception celebrating National Day, Mr Tsang said Hong Kong, as the southern gateway to China, is geo-economically and politically well positioned. The city's economy is increasingly, integrated with the Mainland's, particularly with the Pearl River Delta to form a sophisticated and competitive regional economic powerhouse.

He said the recent visit of legislators to the delta region signified a long-awaited breakthrough in communication and co-operation with the Mainland.

Broader perspective

"Not only should we maintain this momentum, we should also view such co-operation from a broader perspective. When we view it in a broader context, against the backdrop of the future development of the Pan-PRD and our country, we will find that the scope and potential for co-operation are far wider than we imagined, that the people of Hong Kong can make an even bigger contribution to our country and that we can generate even greater prosperity," he said.

Hong Kong has overcome many difficulties and has embarked on a wider and smoother path, he said. A number of major projects, which will reinforce the city's status as a hub for finance, trade, logistics and tourism, are on-coming. They will add to the city's synergy with the Mainland in its accelerating development.

"However, we should not be complacent. We should work harder and be more innovative. Hong Kong citizens harbour a lot of hopes for such development, as do our neighbouring partners and the Central Government. The Government will strive to improve governance as well as promote economic growth and social harmony. I hope that all members of the public will embrace this new development of Hong Kong with an open mind and with tolerance."