Mr Wen's remarks, on the sidelines of the Association of Southeast Asian Nations summit in Bali, came as Secretary for Constitutional Affairs Stephen Lam Sui-lung said a clear timetable for public consultation on political reform would be unveiled this year.

The pro-democracy camp has been pushing for election of the chief executive in 2007 and of the Legislative Council in 2008 by universal suffrage.

Speaking in Legco, Mr Lam said the government wanted movement towards democracy by 2007, but warned that, under the Basic Law, changes would require the support of two-thirds of the legislature. He would not commit himself to supporting a referendum to see what the public wanted.

Mr Lam said progress was possible. 'I think we could come up with a proposal in the interests of Hong Kong if different parties put aside their differences and seek common ground,'' he said.

Although there is not much more than three years to go, Mr Lam expressed confidence there would be sufficient time to finish consultation on, and bring into law, any ideas to advance democracy.

The constitutional affairs chief called the July 1 protest, in which at least 500,000 people marched in opposition to the National Security Bill, a contribution to democratic development. 'The July 1 incident shows the public has deep respect for the rule of law and they love freedom. These values are crucial to democracy ...,' he said.

The premier, who returned to Beijing last night, said: 'I am very happy to see that the situation in Hong Kong has become stable and the economic recovery is under way. This is what all Chinese - including Hong Kong people - want to see.

'We should firmly stick by the policy of 'one country, two systems'. We must believe that Hong Kong people can govern Hong Kong well.

'Through economic development, we can improve Hong Kong people's livelihood.'

He added: 'We should, through the gradual development of democracy, safeguard the various rights and freedoms that are guaranteed under the Basic Law.

'As long as we stay united and work hand in hand, I say this again: Hong Kong has a bright future.'

President Hu Jintao said during his meeting with Chief Executive Tung Chee-hwa in July that the evolution of Hong Kong's political system should proceed in accordance with the Basic Law and the city's practical situation.

Veteran China-watcher Johnny Lau Yui-shiu said Mr Wen had stuck closely to the tone of other national leaders on political development in Hong Kong.

Joseph Cheng Yu-shek, professor of political science at City University, agreed Mr Wen had struck a conservative note. And Ma Lik, a Hong Kong deputy to the National People's Congress, said the premier's comments should not be interpreted as a significant change in the central government's stance on the pace of democracy in Hong Kong.

Still, Mr Lau said: 'I would not rule out that the central government is considering how to respond to Hong Kong people's appeals to speed up the pace of democratisation following the July 1 protest.'

He said while the central government was unlikely to support elections by universal suffrage, the differences between Beijing and the majority of Hong Kong people might narrow over the next few years.