Organizing committee chairman Cheng Yiu-tong said he expected at least 40,000 people at the 12th anniversary celebrations.

In response to the challenges Hong Kong faces, the parade will have the theme Unity, Empowerment, and Celebration.

Cheng said the idea drew on the six key measures proposed by the Taskforce on Economic Challenges on June 22, and that this year's parade aims to inspire people to have faith in a brighter tomorrow.

"Through this event, we hope to encourage the people of Hong Kong to commemorate the 12 years since reunification and at the same time look forward to the future," Cheng said.

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Asked if the July 1 pro-democracy march would counteract the spirit of unity generated by the parade, Cheng said: "Hong Kong is a city of free expression...it is normal for people to express their opinions and differences."

"As great as any government is, there will always be room for improvement," he added.

The unity parade will begin at 10.30 am from the Hong Kong Stadium and is expected to end 3 hours later at Hennessy Road.

Hong Kong officials expected to attend the stadium segment with the Chief Executive include secretary for home affairs Tsang Tak-sing, secretary for development Carrie Lam Cheng Yuet-ngor, and secretary for constitutional and mainland affairs Stephen Lam Sui-lung.

Mainland officials including Peng Qinghua, director of the Liaison Office of the Central People's Government, and commissioner of the Ministry of Foreign Affairs Lu Xinhua are also expected.

The parade will feature acts by local groups, traditional performances, face- changing shows and other decorations.

One highlight will be the flag raising ceremony staged by the People's Liberation Army.

KWOK HO-LAM