19. After much soul searching and a review of the successes and failures of our governance, my colleagues and I have taken stock of experience gained and lessons learnt. We have taken heed of public criticisms of our governance and responded positively to the aspirations of the people. Over the past year, we have focused our efforts on improving our governance and raising the quality of our administration. Looking ahead, we will continue to move forward in the following direction.

20. We will fully implement "One Country, Two Systems" and adhere strictly to the Basic Law in our governance. We will uphold freedom, implement the rule of law and safeguard the independence of the judiciary. We will staunchly preserve the core values of our society, which include continuous self-improvement, honouring agreements and contracts, fair competition, respect for personal dignity, protection of private property, charity and benevolence, filial piety and social harmony. These core values are embodied in our governance.

21. We will continue with our efforts to uphold the vision of "people-based" governance. We will gauge the mood of the people more accurately and listen more closely to their opinions. We will also engage more representatives of various groups to join advisory bodies. This year, we will review the functions and other aspects of District Councils and enhance our support for them. We will attach importance to how the 18 District Officers may better play their role. We will help them resolve community problems in a practical manner, referring them if necessary to higher levels for expeditious resolution. I have asked the Principal Officials to fully support the District Officers to enable them to function more effectively. We will deliver on the "people-based" service culture, pay constant attention to public aspirations and respond actively.

22. We will further enhance the operation of the Accountability System and demonstrate team spirit. While the Principal Officials are responsible for different policy areas, they collectively discuss important policy decisions and co-ordinate with each other in implementing policies. We will continue to reinforce the policy research capability within the Government. We will allocate, for each of the next three years, an additional $20 million to the University Grants Committee, which will in turn task its Research Grants Council with promoting public policy research in higher education institutions. We attach great importance to engaging people from different sectors, particularly the middle class and professionals, in the formulation of public policies. We will better co-ordinate the determination of priorities for new policies. We will strengthen our communication with the media, better gauge public reaction to policies and respond promptly. We will safeguard public interests, resolve conflicts and actively enlist the support of different sectors of the community.