Freedom 'alive and kicking' in Hong Kong

Tung says Sino-U.S. relations are improving but need hard work

By CNN's Kirsty Alfredson

HONG KONG, China (CNN) -- During a stateside visit, Hong Kong's chief executive Tung Chee Hwa has assured U.S. President George W. Bush that freedoms in the territory are "alive and kicking and doing well".

Hong Kong's leader met the president and had a working lunch with Secretary of State Colin Powel and other political leaders to discuss the former British colony's autonomy since it was handed back to China in 1997.

"I had the opportunity to tell the president that four years since the return of Hong Kong, "one-country, two-systems" is an everyday reality," Tung said.

Walk out over controversial bill

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On Wednesday in Hong Kong, 17 legislators staged a walk out after a controversial bill, allowing China to remove its Chief Executive, was passed.

The Hong Kong legislative council approved the bill, which allows Hong Kong's chief executive to be chosen by a committee in Beijing, and also to be dismissed at will by the Chinese government.

Tung, who has been accused of being a Beijing puppet, was not present for the debate, which will affect his next term.

Reporters in the U.S. asked him about the Sino-U.S. relationship, which he said was moving forward in a positive way.

"We exchanged views about China, and the president is looking forward to visiting China in autumn. And I know he attaches a great deal of importance to the relationship," he said.

"I think obviously there is a need for both the United States of America and China to work hard at this relationship."

U.S. paying close attention

Relations between the two countries were strained in April over the spy plane incident, leading to the suspension of U.S. naval vessel visits to Hong Kong that was only lifted on Monday.

A spokeswoman for the U.S. secretary of state said both Colin Powell and Deputy Secretary of State Richard Armitage emphasized Hong Kong's "uniqueness" that was grounded in "the Rule of Law", autonomy and civil liberties.

She said the U.S. had extensive interests in Hong Kong and would pay close attention to developments as Hong Kong evolves in its new status.

Tung told reporters after his meeting that he explained how Hong Kong was moving forward, "including how strong the rule of law and how well the freedoms -- whether it's the freedom of the press or religion -- are alive and kicking and doing well".

Comments in June by Tung on the Falun Gong spiritual group caused renewed concerns about the territory's autonomy when he mimicked China's line by calling it "an evil cult".

Human rights groups were concerned the territory may move to limit religious freedom as the group is outlawed on mainland China but tolerated in Hong Kong.

Tung also spoke about opportunities for American businesses in Hong Kong as China's accession into World Trade Organization inches closer.