Hu Jintao, president of the Party School of the Central Committee of the Communist Party of China (CPC), said on November 28 that "the correct understanding and handling of the relationship among reform, development and stability is not an expedient measure, but an important principle that China must adhere to for a long time to come."

Only by handling the relationship among the three, and correctly maintaining their coordinated development, can a long period of peace and prosperity be achieved, said Hu, who is a member of the country's top 7-member decision-making body, the Standing Committee of the Political Bureau of the CPC Central Committee, at a Party school graduation ceremony attended by provincial and ministerial level officials here today.

In analyzing the present domestic situation, Hu, also the State vice-president, said: "We should continue to pursue a pro-active financial policy and combine the task of driving domestic demand with readjusting the economic structure, promoting scientific progress, opening to the outside world, developing western China, and improving people's living standards."

Efforts will be concentrated on the reform of State-owned enterprises to attain the goal of extricating them from difficulties in the coming three years and laying a solid basis for the 10-year blueprint set by the Fourth Plenum of the 15th CPC Central Committee.

As China's reform and development enter a crucial period, the maintenance of stability becomes even more important, Hu said, "We should be based in reality and probe effective ways to solve contradictions among the people."

He urged leading officials at all levels to consider the lives of the people, pay attention to work methods, and try to solve problems in their early stages.