At a bilateral meeting on the sidelines of the Association of Southeast Asian Nations (ASEAN)'s annual meet here, both sides expressed satisfaction with recent developments in bilateral ties.

Tang and Powell noted that the two countries are expanding cooperation in areas of anti-terrorism and trade while keeping consultations on UN affairs as well as regional and global issues such as those in South Asia and the Korea Peninsula.

They believed Chinese President Jiang Zemin's upcoming visit to the United States and his third summit with US President George W. Bush this Autumn will further strengthen bilateral ties.

Powell said Bush attaches great importance to US-China relations and looks forward to this visit.

He said the US government will work closely with China to solve all existing problems and make good preparations for Jiang's visit.

Tang pointed out that as permanent members of the UN Security Council, both countries have important responsibilities to maintain peace and stability in the region and the world.

He said China and United States share many common interests, especially in the Asia-Pacific region.

The two officials agreed that it is necessary for the two countries to increase dialogue and cooperation while enhancing mutual understanding and trust, so as to keep their constructive and cooperative partnership moving forward continuously.

They also agreed to enhance bilateral anti-terror cooperation on a two-way and mutual-benefit basis, and decided to hold the second consultation of China-US anti-terror team in financial areas this October.

As the two officials consented, the two countries will open talks for exchanging information in drug suppression in the near term and facilitate a new round of bilateral dialogue on human rights issues.

Reaffirming the Chinese government's basic policy of "peaceful reunification, and one country, two systems" on the Taiwan Issue, Tang said those who seek Taiwan's independence are top enemies of China's peaceful reunification process and will also hurt US interests.

He said China is concerned about recent US move of strengthening political and military ties with Taiwan and urges the US side to stop arm sales to Taiwan and cut all its official and military contacts with Taiwan.

China hopes the United States could play a constructive role in China's reunification course, which will further boost China-US relations, Tang said.

Powell said both the United States and China are important countries in the world and share many common interests despite certain difference.

He said the United States "needs cooperation partners not enemies," pledging that his country will always adhere to the "one China" policy, which will not be affected by any words or actions from the Taiwan side.

On the issue of nonproliferation, Tang reaffirmed that it is a common task facing the whole international community and a policy which the Chinese government always stick to.

He said China is taking steps to enhance and improve the restriction system for related exports.

Tang said the two countries share the common goal in the issue of nonproliferation and China is willing to cooperate with the United States in the area based on principles of mutual respect and mutual trust.

He said China expects the US side to make concrete moves in this regard.

Powell said he was pleased with the prospect of bilateral cooperation in the area of nonproliferation, which he believed fits the interests of both sides.

Both China and United States are key dialogue members of the ASEAN which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

( August 1, 2002)