Prime Minister Stephen Harper praised Quebec City as the "most beautiful" city in Canada, as thousands of people celebrated the provincial capital's 400th anniversary. But the festivities also drew protesters.

It was in 1608 when Samuel de Champlain, a French explorer, arrived to establish the first permanent Western settlement in North America.

"This is Canada's most beautiful city, its most enchanting city, a city that prospers out of its joie de vivre," Harper said as he addressed a massive, rain-soaked crowd.

Despite the weather, thousands of visitors turned out for a day of speeches, a parade, and other festivities. Events include concerts, family activities, and a parade of soldiers featuring the Quebec City-based Royal 22nd regiment.

At 11 a.m. sharp, the time Champlain is believed to have landed in Quebec, the sounds of bells could be heard in Protestant and Catholic churches throughout Quebec and the rest of the country.

Gov. Gen. Michaelle Jean said the bells were a symbol of unity, but added that Quebec's uniqueness is what makes the province such a special part of Canada.

"It's the language and culture that make this land vibrant and beautiful, strong and more lively than ever," she said, addressing the crowd in French.

Jean also paid homage to Quebec's struggle to retain its distinct identity in an English North America.

"It's not only the 400th anniversary of the founding of Quebec City that we're celebrating today but it is four centuries of courage, of stubbornness, of boldness that make it that the French in North America have existed, still exists and will still exist in the future," she said.

Harper and Jean were joined by French Prime Minister Francois Fillon to officially mark the occasion. Segolene Royal, who lost the last French presidential election, was also expected to be in Quebec City. She represents the region where Champlain was believed to have been born.

But while many people were celebrating, the historic day was not without controversy. Hundreds of anti-war protesters gathered to demonstrate against Canada's Afghanistan mission, as a military parade made its way through Quebec City's cobblestone streets.

"They are trying to impose this military culture on us," one protester told CTV News.

The festivities also highlighted Canada's French-English political debate. Sovereigntists have noted the founding of Quebec City established the French presence in North America, while federalists have highlighted the importance of the city's founding in eventually establishing Canada.

"As an historian I am amazed by the political use of these commemorations by both sides -- federalists or sovereigntists," Michel De Waele, of Laval University, told CTV's Canada AM.

"In all of this we are not looking at this event in a global historical perspective and as an historian I am a little bit embarrassed by this."

De Waele said Champlain did not care about the French presence in Canada or other issues which would later dominate the nation's politics.

"He was looking for gold. He was looking for a better route to China," De Waele said bluntly.

Harper said there's room in everyone's hearts for Quebec City.

"Maybe I grew up in Toronto and decided to live in Calgary with my family, and I work in Ottawa, but where I come from, there's a saying that you must have two cities in your heart: your own and Quebec City."

He said Champlain planted the seeds that produced "a Quebec that is confident and proud in a great free and united Canada."

Opposition Leader Stephane Dion said the focus of the celebrations should be about looking to the future rather than focusing on past conflicts.

"We need to figure out how we will build a richer, fairer, better and greener Canada together in English and en francais," he told CTV News.