Chinese President Jiang Zemin held talks with US President George W. Bush in Shanghai Friday morning, saying that China attaches great importance to the Sino-US relationship.

This was the first meeting between the two leaders.

The presidents had an in-depth exchange of views on Sino-US relations, anti-terrorism, maintenance of world peace and stability and other major issues.

The talks were constructive and fruitful.

Jiang said that China attaches great importance to the Sino-US relationship and has always hold that China and the US develop a constructive, cooperative relationship.

To this end, Jiang said that a high-level strategic dialogue mechanism may be established between the two sides, through which the two leaders, directly or via envoys, exchange views on major issues of common concern, and communicate timely.

Jiang said that the Taiwan issue has always been the most sensitive issue in the Sino-US relations.

China's basic approach to resolving the issue has from time to time been "peaceful reunification" and "One country, Two systems", Jiang said.

"We hope that the United States adheres to the one-China principle and abides by the three Sino-US joint communiques," said Jiang.

On the anti-terrorism issue, Jiang said China is always opposed to all forms of terrorism and always supports the fight against terrorism.

The more accurate the strike against terrorists, the more effective the strike, said Jiang, adding that the fight against terrorism should avoid harming innocent people.

He said that a medium- and long-term mechanism for anti-terrorism cooperation may be established between China and the United States.

"We live in a world of diversity and different views may exist between China and the United States. But it's necessary for the two countries to pursue long-term co-existence," Jiang said.

The two countries should seek common grounds while putting aside differences, and keep on expanding their common aspects, Jiang said, adding that history has proved that only in this way the Sino-US relations will achieve development.

Jiang said China has registered great progress since its reform and opening up in the late 1970s, and Shanghai is a vivid epitome of China's development.

China attaches great importance to trade and economic cooperation with the United States, and its recent purchase of 30 Boeing airplanes demonstrates the broad prospect for Sino-US trade and economic cooperation, said Jiang. Bush said that he has been expecting the visit so that he can have face-to-face talks with President Jiang.

The United States attaches great importance to the relationship with China, Bush said.

China is a great country and is not an enemy of the United States, Bush said, adding that he regards China as a friend of the United States.

The United States has been working for developing constructive relationship of cooperation with China, the US president said.

Bush said that he takes the opportunity of coming to China this time to reaffirm that the US government pursues the one-China policy and adheres to the three Sino-US joint communiques.

Bush said that he has been strongly supporting China's entry into the World Trade Organization (WTO).

Extending his congratulations on China's imminent entry into the WTO, Bush said that China's accession to the WTO will be favorable to both China and the United States.

He also expressed congratulations on China's successful bidding of hosting the 2008 Olympic Games.

Bush thanked China for its quick response to the terrorist attacks in the United States on September 11 and its clear and firm support of the US people in fighting terrorism as well as China's cooperation in this regard.

Bush said that while differences may exist between the US and China, the two countries will deal with the differences in the spirit of mutual respect and frankness.

The two presidents also exchanged views on major international issues of common concern during their meeting.

( China Daily 10/19/2001)