He also pledged to rein in the excesses created by the growth-at-all-cost mentality of the past, and push ahead with painful but necessary reforms.

'To stop or reverse reform and opening up would only lead to a blind alley,' he told over 2,200 delegates of the ruling Chinese Communist Party at the Great Hall of the People.

In a wide-ranging 21/2- hour speech beamed live across the country, Mr Hu also held out an olive branch to a defiant Taiwan.

Observers had expected him to adopt a tough stance in the light of the island's recent push for a referendum on Taiwan's sovereignty.

But the Chinese leader instead took a conciliatory tone, urging Taipei to return to formal talks so that a 'peace agreement' and 'a framework for peaceful development of cross-Strait relations' can be established.

The vaguely worded proposal, however, was swiftly rejected by a Taiwanese government spokesman.

The lack of specific policy details did not surprise observers, who said the significance of yesterday's speech was in how the Chinese leader used the occasion to stamp his personal authority on a wide range of issues.

Mr Hu's speech yesterday was the opening act for the 17th Party Congress, a five-yearly meeting aimed at leadership renewal and the setting of broad directions for the party.

Though Mr Hu took power in late 2002 from outgoing leader Jiang Zemin, this was the first time he addressed the Congress as the country's top leader.

True to his populist agenda, Mr Hu gave the assurance that rapid economic growth would continue under his watch, though his administration would try to narrow the widening income gap.

But he was decidedly more careful when addressing the tricky issue of domestic political reforms, making only vague references to expanding 'intra-party democracy'.

Politics of a different kind was on the minds of most journalists covering the event yesterday, as they scrutinised the body language of top Chinese leaders for signs of discord.

The political grapevine in Beijing is abuzz with talk that Mr Hu's carefully laid plans to anoint his protege Li Keqiang as his successor had met with stiff opposition.

One person who is said to be opposed to this plan is the retired Mr Jiang, who sat next to Mr Hu yesterday.

But the two leaders shook hands after Mr Hu's speech, showing none of their rumoured rivalry.

Mr Jiang was not the only retired leader in attendance. Party stalwarts like Mr Wan Li and Mr Song Ping, both in their 90s, also attended the event in a show of unity.

But the fierce political jockeying behind the scenes is anything but.

Sources said last night that the rival camps had agreed on a tentative leadership line-up that would be unveiled next Monday, but added that last-minute changes could still happen.

According to this tentative line-up, Mr Hu failed in his attempt to anoint a successor, but scored a significant victory in securing the retirement of his arch-rival, Vice-President Zeng Qinghong.

A cryptic comment by Mr Zeng yesterday - as reported by the official Xinhua news agency - signalled that he would be stepping down soon.

He reportedly told several Congress delegates during a discussion session: 'We are all soldiers that come and go like water. In this renewal of old and new cadres, we must ensure that the good traditions of the party are passed on.'

simcy@sph.com.sg

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