Two agreements on bilateral co-operation in education and culture were also signed Tuesday.

Jiang proposed that the two countries:

Maintain the exchange of visits and contacts between high-level leaders to enhance mutual understanding and trust;

Expand co-operation in a wide range of fields and channels and strengthen exchange between the two nations' young people, as well as develop political, economic and cultural co-operation;

Strengthen co-ordination on regional and international issues and co-operation in the United Nations and other international organizations;

Enhance mutual respect and trust and handle bilateral relations strategically.

Jiang held separate meetings with German President Johannes Rau and Chancellor Gerhard Schroeder.

Schroeder highly praised Jiang's suggestions. He said that Jiang's visit to Germany was very important and significant for the development of German-Chinese relations.

The chancellor pointed out that there is huge potential for bilateral co-operation in economics, culture, education and science.

At Tuesday's meeting, both Schroeder and Jiang also exchanged views on regional and international issues.

Jiang stressed China's stance on the current situation in the Middle East. He said China has called on Israel to comprehensively withdraw from the Palestinian territories and to implement the relevant United Nations Security Council resolutions.

He indicated that maintaining the authority of Palestinian leader Yasser Arafat and the Palestinian National Authority would help ease the current tension.

Jiang also said that China hoped that the European Union and Germany would play a more active role on the Middle East issue.

During his meeting with Rau, Jiang said that China has always supported German unification and appreciates the German administration's adherence to the one-China policy. He noted that the mutual trust between China and Germany has been the firm basis for strengthening and expanding bilateral friendship and co-operation.

China and Germany should strengthen co-operation, which is the common desire of both sides and is also in the fundamental interests of the two countries and peoples, Jiang said.

Rau said Germany and China hold the same or similar views on a series of international issues and share common interests on "anti-terrorism'' and environmental protection.

The German Government and political parties wish to strengthen dialogue and co-operation and expand the bilateral exchange of personnel to promote understanding and trust, said Rau.

Jiang also explained China's strategy of developing its western region. He said that China welcomes the active participation of foreign investors in the drive.

He stressed that despite the world economic slowdown, China has maintained sound economic development, thanks to the strategy of expanding domestic demand and the active fiscal policy adopted by the Chinese Government.

Jiang indicated that the strategy of developing western China was an important step in the adjustment of China's economic structure.

(China Daily April 10, 2002)