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Prime Minister Stephen Harper, flanked by Quebec City Mayor Regis Labeaume, from the left, Governor General Michaelle Jean, Quebec Premier Jean Charest and Native chief Max Gros-Louis attend the celebrations marking the 400th anniversary of the founding of Quebec City on Thursday July 3, 2008. (Jacques Boissinot / THE CANADIAN PRESS)

Vermont governor James Douglas, left, and Quebec Premier Jean Charest, center, unveil a momument as Quebec City mayor Regis Lameabe, right, looks on in Quebec City Wednesday July 2, 2008. (Francis Vachon / THE CANADIAN PRESS)

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.

Dignitaries help mark Quebec City's 400th year