During the talks, Jiang said in the past decade since the two countries established diplomatic relations, the ties between China and Croatia had steadily grown, mutual political trust had improved and cooperation in economic and scientific fields, culture, education and tourism had become closer.

China and Croatia supported each other in international organizations and "we have become good partners in the equal, mutually trusted and beneficial cooperation," Jiang said.

While extending his appreciation for Croatia's adhering to the one-China principle, Jiang said China attached importance to Sino-Croat friendship, and was willing to elevate ties to a higher level based on the principles of a joint statement the two leaders signed.

Jiang put forward four proposals for promoting bilateral ties in the new century:

First, to strengthen political dialogue at various levels to improve mutual political trust, and to seek mutual understanding and support on major issues of benefit to each country.

Second, to actively expand economic cooperation and trade between the two sides.

Third, to widen mutually beneficial cooperation in various fields including culture, education, science and medicine, to study the possibility of cooperation in finance and accelerate the process of making Croatia a tourism destination for Chinese citizens.

Fourth, to expand local government exchanges between both countries plus private exchanges.

Mesic briefly explained Croatia's foreign and domestic policies and views on the situation in Southeast Europe.

Jiang said Croatia had important influence in middle and eastern Europe, and China was glad to see Croatia enjoying a stable society and booming economy, as well as improved living conditions for its people, developing sound ties with its neighbors, and playing an active role in regional and international affairs.

China respected the development route and policies Croatia chose based on its domestic state, understood the efforts Croatia made in the integration of Europe, and appreciated the plural foreign policy of Croatia, said Jiang.

Of the current international situation, Jiang said China agreed with democratic international ties and held that all countries no matter whether big or small, rich or poor, strong or weak, were equal members of the international community, and had equal rights to participate in international affairs.

Jiang said the diversity of the world should be expected. Each country had the right to choose its own development route suitable to its domestic conditions, and existing differences in social systems and values should not be regarded as barriers to developing ties between countries.

No country could be allowed to establish hegemonism and interfere in other countries' internal affairs, Jiang added.

Jiang stated China's stance on anti-terrorism, noting that no other international or regional organizations could take the place of the United Nation whose authority and importance made it the most popular international organization in the world.

Jiang hoped the leading role of the UN in international affairs, including the fight against terrorism would be further strengthened.

Mesic hailed China's achievements in reform and opening-up to the outside world, adding that Croatia attached great importance to the positive role China played in international affairs as a permanent member of the UN Security Council.

Mesic said the distance between Croatia and China would not influence bilateral cooperation in various fields, and hoped the two countries, both as members of the World Trade Organization (WTO), would improve cooperation in the new century.

Mesic added that Croatia adhered to the "One China" policy, and agreed to fight terrorism through the UN.

After the talks, the two sides signed the Joint Statement of the People's Republic of China and the Republic of Croatia on Deepening Their Relationship through Mutually Beneficial Cooperation.

They also signed an Agreement on Scientific Cooperation Between the Croatian Academy of Science and Arts and the Chinese Academy of Engineering and the Agreement on Establishment of Friendly Economic and Trade Partnership Between Liaoning Province of the People?s Republic of China and Primorsko-Goranska County of the Republic of Croatia.

Before the talks, Jiang presided a welcome ceremony for Mesic.

(People's Daily May 17, 2002)