Chinese Premier Wen Jiabao said on the eve of the National Day that the State has fought a bitter battle and learned a lot from the nationwide fight against SARS earlier this year. He also said this year's goal of reform and development will be fully realized.

Addressing more than 1,000 government officials and foreign diplomatic envoys at the Great Hall of the People, Wen heralded the national spirit and unity reflected in the war against SARS, which could be the foundation to achieve modernization of China.

Chinese President Hu Jintao, National People's Congress Chairman Wu Bangguo and Vice-President Zeng Qinghong were present at the gala party celebrating the 54th anniversary of PRC.

China was caught by surprise by the onslaught of SARS (severe acute respiratory syndrome), Wen said. The Chinese Communist Party Central Committee and the State Council took a series of resolute measures, mobilizing and organizing the people throughout the country to wage a bitter campaign against the epidemic and thus far winning a significant victory.

Faced with numerous difficulties and challenges, China put equal emphasis on SARS control and economic development and proceed with the reform and opening to the outside world, Wen said.

Wen continued that though China paid a high price for the epidemic, Chinese Government and the people have "learnt far more than what we would have under normal circumstances".

In building a well-off society in an all-round way, the premier vowed that China will stick to the principle of overall planning while taking into consideration different aspects.

The premier noted that the central government will adhere to the policy of "one country, two systems", "HK people administering HK", "Macao people administering Macao" and a high degree of autonomy.

Beijing will adhere to the basic law of HKSAR and Macao SAR to maintain and promote the stability and prosperity of the two regions, said Wen, adding that the central government has full confidence in the future of the two regions.

On the Taiwan issue, Wen said China will continue to implement the basic policy of "Peaceful reunification and one country, two systems", and  the eight-point proposal on developing cross-Straits relations and advancing the process of peaceful national reunification at the present stage.

"We will adhere to the 'One China' principle and stand firmly opposed to any splittist activities by 'Taiwan independence' separatists," Wen said.