Wen gave a positive appraisal of the China-India relations, saying the Chinese government valued its ties with India, and wished to establish a long-term, stable and sound relationship as friendly neighbors and develop reciprocal cooperation.

With their relations facing important development opportunities, the two countries should enhance their trust and cooperation and bring bilateral ties into a new era.

China and India had a sound basis for friendly cooperation, Wen said. The five principles of peaceful co-existence as advocated by both countries had provided a fundamental guarantee for the healthy development of bilateral ties. They faced a mounting need to cooperate as both countries were dedicated to domestic economic development.

Wen said that with identical or similar views on many significant international issues, the two countries' need for coordination and cooperation was also increasing.

Wen said he and Vajpayee would sign a declaration later Monday that would lay down the goal and guideline principles for the two countries' relations, and outline a plan for comprehensive cooperation in all spheres. The document indicated that China-India bilateral ties had entered a new phase.

Wen floated concrete proposals for future development of the ties. He said the two countries should extend contacts to enhance trust and dispel suspicion, expand cooperation to raise bilateral trade volume to 10 billion US dollars by 2005, develop cooperation in science, education, culture and health and set up cultural centers.

He said the two countries should also strengthen coordination and safeguard the just interests of developing countries in international affairs, and push forward the process of world multipolarization and democratization of international relations.

The two nations should also maintain friendly ties and attach importance to the issues of bilateral relations left over by history, preventing the issues from undermining the healthy development of Sino-Indian relations.

Wen said it was a historical trend for China and India to promote bilateral ties, stressing that Asia's overall development relied heavily on the healthy development of relations between China and India.

China did not regard India's development as a threat, Wen said, and on the same basis, the development of China would not be a threat to any other countries.

Wen said China was fully committed to establish a new type of relationship with India based on the long-term constructive cooperative partnership. He believed that with the joint efforts of both sides, Sino-Indian ties would be further developed in the new century.

Wen outlined his views on the international situation to the Indian guest. On the situation of South Asia, Wen said China welcomed equal treatment and peaceful coexistence among South Asian nations.

China hoped to see the further relaxation of relations between India and Pakistan and supported efforts to ease tensions and safeguard peace between the two countries, Wen said.

China would never seek to push its private interest in South Asia affairs, and the friendly cooperation established among China and South Asian countries would never target any other country, Wen said, promising China would continue its role as a constructive player in promoting peace and development in south Asia.

Vajpayee said China and India were close neighbors, and their peoples had enjoyed long-term friendship and both China and India were populous and developing countries.

He said the Indian government attached importance to the development of relations with China and hoped to promote understanding and mutual trust and cooperation through the visit, and maintain the good momentum of the bilateral relations in recent years.

He appreciated the proposals of Premier Wen on developing bilateral ties.

He said that India would like to work with China to show the peoples of the two countries and the international community the determination of developing relations between the two countries and cooperation in the fields of economy and trade, finance and military.

He also expressed the willingness to strengthen the coordination of the two countries in the international affairs and contribute to world peace and development.

Vajpayee expressed the view of the Indian government on Asian, especially South Asian, situation affairs.

He stressed that India hoped to maintain stability in South Asia and was committed to promoting regional cooperation in South Asia.

Vajpayee also expressed appreciation for the role China had played in the nuclear issue in the Democratic People's Republic of Korea (DPRK).

(Xinhua News Agency June 23, 2003)