The Hindu Business Line : Hu, Manmohan find common ground

GETTING UP CLOSE: The Chinese President, Mr Hu Jintao, with the Prime Minister, Dr Manmohan Singh, at a meeting in the Capital on Tuesday. — V.V. Krishnan

New Delhi , Nov. 21

Describing themselves as partners for mutual benefit and not as rivals or competitors, India and China on Tuesday agreed to make the positive development and diversification of bilateral relations in recent years into an irreversible trend. Towards this end, the two countries committed themselves to not only encouraging two-way investment flows, but also indicated that they would work to double the volume of bilateral trade to $40 billion by 2010.

In a joint declaration issued by the Prime Minister, Dr Manmohan Singh, and the visiting Chinese President, Mr Hu Jintao, here today, the two sides agreed that the relationship between them was of global and strategic significance and that there was enough space for them to grow together and play their respective roles in the region and beyond, while remaining sensitive to each other's concerns and aspirations.

The leaders also committed themselves to pursue a 10-pronged strategy to upgrade India-China relations to a qualitatively new level and to further substantiate and reinforce the strategic and cooperative partnership.

The joint declaration adds that the two sides would diversify their trade basket and remove existing impediments to sustain and further strengthen bilateral commercial and economic co-operation.

"It has been decided to boost trans-border connectivity and cooperation. We have endorsed a major initiative on science and technology, which will involve launch of several joint projects. Cooperation in the field of civilian nuclear energy will be promoted. We are also convinced of the imperative need to broad base the relationship through enhanced people-to-people contacts and cultural ties," Dr Singh told presspersons at a joint meeting with the Chinese President after the formal talks between the two leaders.

He also said that the Joint Task Force to study the feasibility and benefits of the India-China Regional Trading Arrangement had been asked to expedite its report and present it by October 2007.

Enhance people contacts

The enhancement of people-to-people contacts is to see the launch next year of an India-China year of friendship through tourism and a five-year programme for exchange of youth delegations. The two sides also agreed that an early boundary settlement would advance the basic interest of the two countries.

Both sides also agreed to fully implement the provisions of the Memorandum of Understanding on co-operation in the oil and natural gas sector signed in January 2006 and encourage collaboration between their enterprises, including joint exploration and development of hydrocarbon resources in third countries.

13 pacts signed

The two countries signed 13 agreements, including an investment promotion and protection agreement and an agreement that establishes a mechanism to inspect trade in iron ore.

In addition, two MoUs were signed, including an agreement between the Forward Markets Commission and China Security Regulatory Commission to promote investor protection and integrity of the commodity futures market by providing a framework for co-operation.