CAMBRIDGE, Massachusetts, November 1, 1997, (CNN) -- Chinese President Jiang Zemin defended his regime Saturday in a speech at Harvard, maintaining Beijing's stance of refusing to meet with the Dalai Lama, the exiled spiritual leader of Tibet. As Jiang spoke, thousands of protesters outside the assembly hall burned Chinese flags and chanted, "Free Tibet!"

Jiang's speech marked the first time a Chinese head of state visited Harvard in its more than 360-year history. About 900 invited guests and 300 students whose names were selected from a campus lottery were in attendance.

Jiang told the audience that a progressive China is not to be feared and that Beijing has achieved various economic goals through its socialist policies.

"The practice in the recent 20 years has eloquently proved that we are right in direction, firm in conviction, steady in steps and gradual in approach when carrying out the reform," he said."We have achieved tremendous success."

"If we persist in our reform we will be able to turn our ideas into reality to achieve modernization," he said. At the end of the 45-minute speech, a moderator asked a question submitted by a Harvard student about why Beijing refuses to meet with the Dalai Lama.

"Our policy toward the 14th Dalai Lama is a very clear-cut one," Jiang said. "He must recognize publicly that Tibet is an inalienable part of the People's Republic of China, that he must state publicly to give up Tibet independence and that he must stop all activities aimed at splitting the motherland."

He added, "Much to my regret, ... the 14th Dalai Lama has not stopped his separatist activities."

The Dalai Lama fled his Himalayan homeland in 1959 after an abortive uprising against the Chinese troops who seized control of Tibet nine years earlier. About 120,000 Tibetan exiles live in India, and smaller communities live in Europe and North America.

Asked about the 1989 Tiananmen Square crackdown, Jiang gave a lengthy and somewhat equivocal statement, touching on the regional disparities and saying that there are "various channels" for the government to learn about people's views.

Asked about the 1989 Tiananmen Square crackdown, Jiang gave a lengthy and somewhat equivocal statement, talking for several minutes about the regional disparities in China and the problems of development in such a vast country.

"The policy of the government is to serve the people," he said."Therefore, we have to reflect the people's requests and do everything that will meet people's requests.

"It goes without saying that naturally we may have shortcomings and even make some mistakes in our work, however we've been working on a constant basis to further improve our work." Protesters call for freedom in Tibet Outside Memorial Hall where Jiang spoke, protesters waved U.S.and Tibetan flags and carried placards proclaiming support for Tibetan independence. Some demonstrators burned the Chinese flag and posters of Jiang.

The throng of demonstrators also included some Beijing supporters, who sang the Chinese anthem and waved Chinese flags.

Dan Kennedy, 27, a musician from Cambridge, carried a sign reading, "Free Tibet, No One Is Safe." "I hope Tibet can achieve political freedom, because they do have an amount of spiritual freedom, but no true sovereignty," Kennedy said.

Michael Kelley, 37, a native of Elizabeth, Colorado, said he was protesting against the United States' priorities in its relations with China. "The imbalance in trade cannot be corrected by the sacrifice of human life in China and Tibet," he said.

Jiang's visit comes on the seventh day of an eight-day U.S. tour that has taken him to Honolulu, Washington, D.C., and New York City. He leaves for Beijing Sunday afternoon.