China, Bangladesh stand united in war on terror

Chinese President Jiang Zemin yesterday told visiting Bangladeshi Prime Minister Khaleda Zia that their two countries stand united in the war on terror and urged peace in the volatile South Asian region, state media said.

"China and Bangladesh stand side by side in the fight against terrorism," Jiang told the visiting Bangladeshi leader, according to China's Xinhua news agency.

Khaleda Zia is on a five-day visit to China expected to focus on economic and defence cooperation.

Jiang told his guest that China paid close attention to South Asia, because stability there affects stability in the Asia region as a whole, according to Xinhua.

Jiang said he hoped the countries of South Asia will treat each other on "an equal footing and co-exist in harmony", Xinhua reported.

Tensions between nuclear-armed India and Pakistan have recently declined, and the U.S. government said on Friday the situation between the two rivals was no longer "alarming".

Khaleda left Beijing for southern Hainan island yesterday and will also go to China's southwestern Yunnan province.

Her trip follows a visit by Prime Minister Zhu to Bangladesh in January.

Beijing has traditionally had close ties with Dhaka, funding a number of major construction projects in Bangladesh and providing military equipment and training.

Bangladesh and China on Tuesday signed three agreements including one that aims to expand defence cooperation between the two countries, local newspapers reported yesterday. The defence agreement is to help institutionalise the existing agreements in the field and rationalise the existing piece-meal agreements to enhance cooperation in training, maintenance and in some areas of production.

The agreements were signed following official talks between Khaleda and Zhu Rongji in Beijing.

Under one agreement China will provide Bangladesh with a grant of $7.25 million for the construction of Sixth Bangladesh-China Friendship Bridge over river Dhaleswari and an additional soft loan of $6.04 million.

"The two countries also agreed to further expand trade, investment and economic relations for the benefit of the two peoples," Bangladesh Foreign Secretary Shamsher Mobin Chowdhury was quoted as saying after the official talks.

Under another agreement China will convert a $3.02 million credit for building Bangladesh-China Convention Centre to grants provided to Bangladesh as a "gift of the Chinese people".

In the one and a half hours‚ official talks, Zhu Rongji assured Khaleda Zia of all sorts of support and cooperation in Bangladesh's march towards peace, progress and prosperity.

Describing Bangladesh-China friendship as "deep-rooted in history", Khaleda said that the two countries look upon each other as "true and trustworthy friends".

She expressed her government's commitment to further strengthen the bonds of friendship and cooperation with China so that the two countries can continue to work together in an environment of peace and stability, essential for socio-economic development.

The Bangladesh PM requested the Chinese government to allow duty-free access for 34 Bangladeshi items to China as proposed by Bangladesh under the provision of the Bangkok Agreement.

She also reiterated Bangladesh's unequivocal support to the "One China Policy".