The UN Resolution No. 1441 should continue to be implemented, and the inspection work should be continued, he said.

In the meantime, Wen said, China held that the Iraqi government should strictly abide by the relevant UN resolutions. Iraq should coordinate with international organizations to proceed weapon inspection, and possess no weapons of massive destruction.

Now the war on Iraq is like an arrow put upon a bow, and under the touch-and-go situation. Even with a clinch of hope, China will not give up efforts to solve the Iraq issue through political means, he said.

Wen said that the United Nations Resolution 1441 complies with the United Nations Charter and should be honored.

China's stance on the Iraqi issue is a clear-cut one, Wen noted. "China will continue to adhere to the position that the Iraqi issue should be resolved by peaceful and political means."

China has noticed the latest address made by US President George W. Bush on Iraqi issue, the premier said.

*** On farmers' financial burden

China will continue to cut down financial burden on its farmers through various means, including downsizing the government payroll in rural China, while offering more financial resources for rural areas, Wen said.

As of this year, the increased portion of central government budget earmarked for science and technology, education, culture and health will go primarily to rural areas, said the premier.

*** On ownerships of banks

Wen said that with the supervision continuing to improve, diversified ownership will be a certain trend for Chinese banks, but will go through a fairly long period of time.

He said China has only a history of a dozen years in building commercial banks in true sense, and that share-holding banks have already emerged.

*** On Sino-Russian relations

China's new premier Wen Jiabao said here Tuesday that China-Russian ties will see stable growth thanks to concerted efforts made of both countries.

China and Russian share more than 4,000 kilometers of common border. "The stability and development of Sino-Russian ties comply with the fundamental interests of the two peoples," he said.

The Sino-Russian strategic partnership of cooperation has scored further development and the Sino-Russian Good-Neighborly Treaty of Friendship and Cooperation signed by the two countries has laid a legal foundation for the bilateral ties, he said.

China and Russia will continue to give play to the role of the Shanghai Cooperation Organization, a six-member regional organization founded in 2001, he noted.

"All members will strengthen consultation on major international issues and make due contribution to safeguarding world peace and promoting common development," the Chinese premier said.

*** On political Restructuring

China is to push forward political restructuring in three aspects, including scientific decision-making, law-based administration and democratic supervision, newly elected Prime Minister Wen Jiabao said on Tuesday at a news conference in Beijing after the closing of the first session of the National People's Congress.

Wen said China will draw opinions from officials, experts and civilians for major issues and economic construction projects, to forge a scientific and democratic decision-making system. A law-based administration will be carried out, receiving restrain and regulations from public.

China will also push forward democratic supervision, with the government under the supervision of the National People's Congress (NPC) of China, the Chinese People's Political Consultative Conference (CPPCC), the common people and the media, said Wen.

He emphasized that only by advancing democratic supervision, will the government not slow down its pace.

Wen said continuously perfecting China's political system and administration will be one of his priorities. He also said that he is a man ready to take responsibilities and will devote himself to serving the country.

*** On Palestine-Israeli conflict

The Palestine-Israeli conflict should be resolved through peaceful dialogue, said Wen.

"We truly hope the two sides can work to avoid war and resolve the conflict through peaceful resolution," Premier Wen said at the press conference.

*** On Sino-Japanese relations

Wen said that he would visit Japan only when there is an "appropriate atmosphere."

Wen said that China hopes to develop relations with Japan at all fields, including high-level exchanges. But he stressed China hopes Japan can strictly observe the three

joint documents between the two countries, take history as a mirror and look forward to the future.

To handle the issues left over in history appropriately is always the political basis for the development of bilateral relations between the two countries, Premier Wen said.

*** On Non-performing loans

Wen said that reform is the key to resolve the problem of the high non-performing rate of loans (NPL) in State-owned commercial banks.

The banks will focus on the building of modern corporate structure and the establishment of modern financial system and will create conditions to carry out share-holding system in a bid to cut down non-performing loans, he said.

*** On stability

Wen said that stability is of "critical importance" to China. "As the premier of a nation with a population of 1.3 billion, I'm most concerned about the country's development and stability," he said.

China owes its great achievements in the past 13 consecutive years to a stable domestic situation, he said.

*** On non-public sectors

China will continue to support the growth of enterprises in the non-public sectors and treat them the same as enterprises in the public sector with regard to market access, taxation, bank loans and import and export, said Wen.

The enterprises in the non-public sectors play a very important role in creating jobs, he said.

"It is the government's steadfast policy to support the growth of enterprises in the non-public sectors, including private enterprises," Wen stressed.

*** On Taiwan issue

The new Chinese government will continue to follow unswervingly the policy of peaceful reunification of the motherland on the basis of "one country, two systems", said wen.

"I want to take this occasion to extend my best regards to the Taiwan compatriots", said Wen.

It's the common aspiration of the entire Chinese people, including the Taiwan compatriots, to see the complete reunification of the motherland, said Wen.

On the basis of the one-China principle, the Chinese government will seek the early restoration of dialogue and talks across the Taiwan Straits while opposing Taiwan independence, he said.

The Chinese government will also work hard to promote economic and cultural exchanges across the Straits and work for the early realization of the three direct links between the two sides, he added.

The government is firmly opposed to "Taiwan independence", said the premier.

Wen extended his best regards to the Taiwan people. "I want to take this occasion to extend my best regards to the Taiwan compatriots," he told journalists at an on-going press conference.

It's the common aspirations of the whole Chinese people, including the Taiwan compatriots, to see the realization of the complete reunification of the motherland, he said.

*** Central government to continue to support Hong Kong

The Hong Kong Special Administrative Region is capable of overcoming difficulties it faces under the leadership of Chief Executive Tung Chee-hwa, said Wen.

Wen that the central government will continue to render support to the Hong Kong Special Administrative Region (SAR) to ensure its stability and prosperity.

The central government "will spare no effort" in this regard, he stressed.

The central government has planned to promptly implement all measures for building up closer economic relations between the inland areas and the HKSAR, he said.

To safeguard the stability of HKSAR is "a firm goal and duty-bound" for the central government, he added. The new premier expected to visit Hong Kong at the earliest possible time.

*** Wen vows to live up to expectations of people

Wen that he will spare no effort to meet the expectations of the Chinese people.

In his meeting with the press after the conclusion of the first session of the Tenth National People's Congress, Wen first thanked the trust given by NPC deputies for electing him as premier.

He briefed the press on his family background. Born into a family of teachers in rural China, Wen said his grandfather and parents were all teachers. His family and the primary school run by his grandfather were destroyed by warfare. "Suffering of the old China left unforgettable impression in my tender mind," he said.

Wen then worked in the field of geology for 25 years, mostly "under harsh conditions", he said.

Through all the hardships, "I nurtured a confidence that a person, a nation or a country can reach the glorious summit so long they can endure all hardships," he said.

Wen then worked in Zhongnanhai, headquarters of the central authorities, for 18 years. During this period he witnessed the accomplishments made by China under the leadership of Deng Xiaoping and Jiang Zemin.

China now faces a historic period for development, he said. "Only under the leadership of the Communist Party of China and by continuing the reform and opening-up can China realize prosperity," he stressed.

During his working period in the central government, Wen traveled widely across China, which helped him further understand the conditions of the country and people.

As new premier, Wen vowed to earnestly assume his duty as granted by the Constitution and make every effort to meet the expectations of the Chinese people.

Wen vowed to strengthen the effort to fight against corruption. His cabinet is willing to put themselves under the supervision of the people and the whole society, Wen said.

*** Stable RMB beneficial to all

Wen said that a strong and stable Renminbi is beneficial not only to China, but also to Asia and the world as a whole.

He said that China adopts a regulated floating exchange rate system according to market demands. Since 1994 when China reformed its exchange rate system, RMB has appreciated 18 percent against the US dollar and 34 percent against euro in real terms.

*** On major problems facing new government

Wen listed the sluggish development of agriculture and slow increase of farmers' income as the primary problem challenging the government, saying it has become a major factor hindering the government efforts to expand domestic demand.

He told reporters at a press conference the second problem is some enterprises have difficulties in operations, and it will be a long-term task to build a modern corporate system in the country.

The third problem facing the government is the increasing number of laid-off workers, which has imposed great pressure on social security.

On the fourth problem, Wen said due to the unbalanced development in urban and rural areas and in the east and west parts of the country, a considerable number of areas and people are still in poverty.

The last problem is the heavy fiscal burden and high rate of non-performing loans.

However, the premier said, with the strong material and technological foundation laid down during the reform and open-up efforts over the past more than 20 years, with the stable and harmonious political situation, and under the leadership of the CPC Central Committee with Hu Jintao as general secretary, "we are sure to overcome the difficulties and fulfill the goal of building a well-off society in an all-round way."

Wen said that the transition of government functions is the "key" to success or

failure in the work of the new State Council.

Facing more than 800 foreign and domestic reporters at the Great Hall of the People, Wen said highly of his predecessor Mr Zhu Rongji, and vowed he would continue to implement his economic policies. Although many people consider him a mild-tempered person, Wen told the press that he is a man of strong belief and ready to take every responsibility resolutely regardless of possible bad luck.

China is confident of achieving its target of building a well-off society under the leadership of the Communist Party of China Central Committee headed by Hu Jintao, Wen said.

Wen Jiabao said that the construction of modern corporate system is a long-term task. The increasing number of laid-off workers and the gap between urban and rural areas and the east and west parts of the country are also hard tasks for the new government.

Wen pointed out that only under the leadership of the Communist Party of China and by continuing reform and opening-up can China realize prosperity.

Wen said "China now faces a historic period for development," adding he will do everything possible to live up to the expectations of the people.

The Chinese people were satisfied at the work of the State Council headed by former Premier Zhu Rongji, Wen added.

Wen said that he has toured about 1,800 counties or cities across China, commanding a thorough understanding of local and national situations.

The new premier said he will do his utmost to meet the expectations of the people. Wen extended his heartfelt thanks to people all over China for their trust.

Wen Jiabao, introduced his deputies of the State Council, or China's cabinet. Wen introduced the newly-appointed vice-premiers Huang Ju, Wu Yi, Zeng Peiyan and Hui Liangyu to the press.

Wen was approved to succeed Zhu Rongji at a just-concluded session of the National People's Congress.