Wednesday, July 1, 1998 Published at 14:59 GMT 15:59 UK
Hong Kong's gloomy celebration
About 2,000 people took part in a flag raising ceremony
Celebrations in Hong Kong to mark the first anniversary of Chinese rule have been low-key and subdued compared to the handover celebrations a year ago, reflecting the economic crisis facing the territory.
Hong Kong's prospects, he added, should not be measured by its present fortunes, but by its spirit.
Mr Tung addressed Hong Kong's public as part of a special televised variety event which was a centre-piece of the anniversary celebrations.
In his own address Mr Jiang struck a more reassuring tone than the chief executive.
Confidence in people
He emphasised the right of Hong Kong people to take control of their own future under the "one country-two systems" formula - a policy that could also serve as a solution to the Taiwan issue.
The Chinese president also said Hong Kong's first year under Chinese rule provided a good example for the Portuguese colony Macau to follow when it reverts to Chinese authority next year.
Official celebrations have been modest on this first anniversary because of the financial crisis.
The start was marked with a flag-raising ceremony at Hong Kong's waterfront, attended by Mr Tung, senior Hong Kong officials and a crowd of about 2,000 people.
Some pro-democracy politicians, who refused to take part in official events at the time of the handover, also attended the ceremony.
Political demonstrations, for example, have been permitted.
According to a University of Hong Kong survey released on Monday, 49% of the 530 people interviewed said their confidence in Hong Kong's future had decreased since the handover, compared with 19% last July.
Another survey by Asian Commercial Research found 82% of the 706 respondents satisfied with the state of political freedom in Hong Kong. In a similar survey carried out a month before the handover last year, only 54% of respondents said they felt confident that political freedom would be maintained.
However, a group of pro-democracy protesters burned the Chinese president's picture outside the hotel where he was staying, and called on him to resign.
They plan protests throughout his visit to call for the release of political prisoners in China.
On Thursday President Jiang will preside over the formal opening of the Chek Lap Kok airport, which will begin operating on July 6.