China hoped that China and the Democratic People's Republic of Korea (DPRK) to improve mechanism so as to guarantee the healthy development of the economic and trade cooperation in line with the principles of mutual benefit and common development, said Chinese Premier Wen Jiabao in Beijing Tuesday.

Wen made the remarks in his meeting with Kim Yong Nam, president of the Presidium of Supreme People's Assembly of the DPRK.

Trade and investment cooperation between the two countries should be encouraged and the personnel training and technological exchanges should be promoted, Wen said.

He reaffirmed that the Chinese government will continue to offer the economic aids to the DPRK within its capacity.

Wen said China-DPRK relations have seen steady progress thanks to the care of the state leaders and endeavor made by peoples of the two countries, adding that the Chinese government attaches importance to the relationship with the DPRK and will consolidate and deepen the bilateral friendly cooperation in all areas.

Kim said DPRK-China relations have been strengthened and developed in recent years, and the economic and trade cooperation has also expanded smoothly. He expressed gratitude for the support and assistance provided by China for the DPRK's economic construction.

He said the DPRK government will, as always, inherit and develop the friendly tradition and continue to expand and deepen the mutually beneficial cooperation with China.

He said the DPRK will firmly support China's principles of "peaceful reunification, and one country, two systems".

The two sides also exchanged views on the situation on the Korean peninsula. Wen said the current situation on the nuclear issue on the Korean peninsula is complex and the dialogue process also meets certain difficulties.

Even under such circumstances, all parties should remain calm, increase trust and reduce differences through dialogues for the realization of a nuclear-weapon-free peninsula and the maintenance of peace and stability on the peninsula, he said.

(Xinhua News Agency October 20, 2004)