Hong Kong has a stronger sense of national identity and is closer to China than ever, the territory's leader Donald Tsang has said.

The message comes as Hong Kong prepares to celebrate the 10th anniversary of return to Chinese rule on July 1.

Chief executive Donald Tsang said in a radio address that his feelings were "a mix of joy and grief" as he reflected on the past decade ahead of the former British colony's July 1 celebrations.

He praised the "heroes" of the 2003 SARS (Severe acute respiratory syndrome) crisis when a previously unknown virus killed 299 people, and said the city of 6.9 million had suffered "unprecedented difficulties" with the Asian economic crisis and bird flu, the DPA reported.

However, he said the implementation of the "one country, two systems" political framework for Hong Kong, guaranteeing its political freedoms after its return to Chinese sovereignty in 1997, had been a major success.

"Today, let's ask a few questions: Does Hong Kong enjoy a closer relationship with the mainland (China)? Do we have a stronger sense of national identity? Do we still embrace our unique systems, way of life and core values?" Tsang said.

"I believe our answers to all of those questions would be a resounding 'yes' ... our achievements in implementing this unprecedented undertaking have been truly remarkable."

Beijing-appointed Tsang, who took over as Hong Kong leader in 2005, was earlier this year given a five-year extension in his term of office.

AK/BGH