The continuous consolidation and development of the China-Egypt relationship of strategic cooperation conforms to the interests of the two peoples and will benefit international and regional peace, stability and development. 

The remark was made in Cairo by visiting Chinese President Hu Jintao at a joint press conference with his Egyptian counterpart Hosni Mubarak, on Thursday.

Hu said the two countries have enjoyed a good relationship since they established diplomatic ties almost half a century ago, and have scored remarkable achievements particularly after Presidents Mubarak and Jiang Zemin jointly called for the establishment of the China-Egypt relationship of strategic cooperation in 1999.

Hu said he shared the view with Mubarak that both countries should, from the strategic perspective, pursue closer political ties, promote cooperation in such fields as economy, trade, culture, education and tourism, and strengthen coordination in international and regional affairs.

Hu considered economic and trade cooperation a crucial part of the strategic cooperation, noting it was also one of the important issues he discussed with President Mubarak.

Bilateral trade, pushed by the joint efforts of China and Egypt, has experienced a steady expansion in recent years, exceeding US$1 billion for the first time in 2003, he said.

The Chinese leader favors solving problems existing in bilateral trade by development, namely, tackling them earnestly in efforts to boost bilateral trade.

China attached great importance to the problems and will take all positive and effective measures to encourage imports from Egypt as well as creating favorable conditions for bilateral trade, said the Chinese president.

Hu went on to say that he and President Mubarak also decided to enhance bilateral cooperation in such fields as petroleum, subway construction and tourism.

As for the development of the Suez Economic Zone, Hu said China attaches great importance to the project and has invested considerable financial, man and material power in it.

He said China is willing to strengthen communication and coordination with Egypt, and to encourage more Chinese enterprises to enter the zone.

The Chinese leader said the profound traditional friendship between China and Arab countries has undergone a new development witnessed by frequent exchanges of visits by high-level officials and increasing business and trade.

Trade between China and Arab countries has increased tenfold over the past ten years, and the total trade volume in 2003 between China and the 22 member states of the League of Arab States exceeded US$25.4 billion, up 43 percent from that of 2002, he said.

China highly values the important influence Arab countries have on international and regional affairs, and believes that there is a still great potential in its cooperation with Arab countries.

Hu said China highly commends the proposal raised by Arab countries for establishing a China-Arab cooperation forum and sees it a mechanism conducive to the further development of the China-Arab friendship of cooperation.

"Egypt enjoys a crucial status in the Arab world, and I believe the development of Sino-Egyptian relationship of strategic cooperation will have a positive impact on the development of the relations between China and other Arab countries," the Chinese leader said.

Mubarak told reporters that Hu's visit once again testified the important roles Egypt and China play in regional and international affairs, and also the profound friendship between the leaders and peoples of both countries.

He lauded the Hu's proposals for furthering the bilateral relationship.

Mubarak said both sides also discussed the importance of strengthening the cooperation between Arab nations and China, which he said would promote the establishment of a new and just international political and economic order.

The president said both sides agreed on the importance of promoting trade and mutual investment between China and Egypt, and will sign a series of important accords on cooperation in such areas as radio broadcasting and television, oil, natural gas, and absorbing Chinese investment in the Suez economic special zone.

The two leaders also agreed that more efforts should be made to settle the Palestinian issue and the solution rests on the establishment of two states, namely Palestine and Israel, coexisting in peace.

The Egyptian president said they also talked about the resumption of negotiations between Israel and Syria, deeming it as a precondition for the realization of comprehensive peace in the Middle East.

"We also discussed the Egyptian initiative for building a nuclear-free Middle East and we believe it is the basis for countries in the region to achieve peace and stability," he added.

As for efforts to restart the Middle East peace talks, Mubarak said violence "will not stop while the two parties refuse to start negotiating again. We must work very hard to break the vicious cycle of violence."

"Getting back to the negotiating table could take some time, but at least it would make it possible to give hope to Palestinian and Israeli citizens that peace is possible, and it could reduce violence," he added.

He said both Egypt and China agree that the United Nations should play a key role in bringing about peace and stability in Iraq as soon as possible and the best way to achieve that is to enable the Iraqi people to rebuild their homeland.

Both sides also favor holding an international conference on anti-terrorism under the auspices of the UN, the Egyptian president said. 

(Xinhua News Agency January 29, 2004)