Government institutional reform

　　Premier Wen Jiabao said that without successful political restructuring, there would be no successful economic reform. He mentioned that he set three objectives on government institutional reform since the first day of his premiership.

　　Wen cited the first goal as the establishment of a scientific and democratic decision-making mechanism, including a group decision-making system and consultations with experts and professional people.

　　The second goal is to administrate the country according to laws, he said. "We must prompt the government to administrate the country in line with law, build the clean and honest government, and pursue the combination of the government's power and responsibility."

　　The third goal is to accept supervision from every corner of the society, including the supervision from the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference, and governments must hear and solicit opinions and views from people and general public, the premier said.

　　Premier pledges continuous support to HK

　　Premier Wen Jiabao said that the central government will do everything conducive to the prosperity and stability of Hong Kong and to the common development of Hong Kong and the inland of China.

　　"Our principle is that whatever is conducive to the prosperity and stability of Hong Kong, to the common development of Hong Kong and the inland, we will actively do it and give our full support to it," he said when answering a question from Hong Kong press.

　　The premier said the central government holds an active attitude toward the upcoming issuance of 20 billion Hong Kong dollars of bonds in Hong Kong.

　　The premier attended a ceremony last June in Hong Kong where the agreement on the Mainland-Hong Kong Closer Economic Partnership Arrangement （CEPA） was signed.

　　Wen reiterated that the central government will unsparingly uphold the principles of "one country, two systems", "Hong Kong people governing Hong Kong" and a high degree of autonomy as well as the Basic Law of Hong Kong.

　　"I sincerely hope that Hong Kong residents can take into consideration the broad situation of the long-term prosperity and stability as well as the long-term and fundamental interests of Hong Kong residents, be united and work together with firm determination for a better future of Hong Kong," he said.

　　State commercial banks face last-ditch battle

　　Premier Wen Jiabao said that in recent years, the state-owned commercial banks have made some progress, but problems are numerous.

　　When answering a question from a journalist of the South China Morning Post, Wen said the biggest problem existing in China's banking system is that the ratio of non-performing loans （NPL） is high, which has reached nearly two trillion yuan, accounting for 20 percent of the total.

　　He also said that nowadays the state-owned banks do not perform very well. The fundamental reasons lie in institution and mechanism.

　　The central government has made a decisive move on adopting a share-holding reform in Bank of China （BOC） and China Construction Bank （CCB） and has injected US$45 billion of capital in the banks. The measures have received generally positive response from home and abroad.

　　"I want to make clear that the banking reform we took this time is to really push our state-owned commercial banks to be the real modern commercial banks," he pointed out.

　　He said the leadership of the two banks must take measures to ensure the safety of the capitals injected by the state, at the same time shoulder the responsibility of lowering the NPL ratio.

　　He also said the management and the competence of the staff inside the state-owned banks is key to the success of the banking reform.

　　"This is our last-ditch battle. We could not afford any failure. We must take decisive measures to ensure a successful reform," he stressed.

　　Japanese leaders' Yasukuni Shrine visits main problem

　　Premier Wen Jiabao said that Japanese leaders' visits to Yasukuni Shrine, where top war criminals are enshrined, have tremendously harmed the feelings of the people in China and Asian at large, underscoring that it is the main problem for bilateral relations between two countries.

　　China lost more than 20 million lives during the war of Japanese aggression against China, said the premier, whose own family suffered during the war.

　　Premier Wen cited Sino-Japanese relations as "generally good". According to the premier, the average trade volume between China and Japan has been valued at some US$130 billion a year and there is an annual exchange of 3 million people in personnel exchange. There are also more than 200 cities with a yoke of sisterly friendship between the two countries, he noted.

　　He urged Japanese leaders to abide by the three political documents concerning Sino-Japanese ties signed between the two governments, learn lessons earnestly from the history, look forward to the future, do not do things detrimental the feelings of the Chinese people anymore, and not affect the regular exchanges of visits of leaders of the two nations and the normal growth of bilateral relations.

　　China hopes for lasting peace, stability in South Asia

　　China is pleased to see the healthy momentum that has emerged in India-Pakistan relationship and hopes for lasting peace and stability in south Asia, said Premier Wen.

　　China's relationship with any country in South Asia is not targeted at a third country, he added.