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British Prime Minister Tony Blair said yesterday that maintaining stability in Hong Kong was crucial to the city's success.

"What is vital,'' Blair stressed, "is that Hong Kong continues its advance as set out in the Basic Law but maintains the stability that is the ultimate bedrock of success here.''

"I believe the Chinese leadership is dedicated to achieving that (stability),'' he added.

The remarks were made at a luncheon speech hosted by the British Chamber of Commerce.

At the luncheon, Blair said that although the disagreement over Article 23 legislation in the territory "has given rise to much speculation that it represents a crisis for the system,'' it is fortunate that Hong Kong benefits from a flexible system.

"There is a sense that I had that the authorities here are very much listening to what the people say,'' he said.

Blair met Chief Executive Tung Chee-hwa at Government House for more than an hour yesterday morning. He also met Li Ka-shing, chairman of Cheung Kong (Holdings) during his stay in Hong Kong.

The British prime minister arrived in Hong Kong on Tuesday evening. He left yesterday afternoon, one day earlier than scheduled, to avoid the approaching typhoon Imbudo.

His scheduled meeting with legislators was cancelled due to his early departure.

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