China and Grenada agreed in Beijing Friday to consolidate and advance relations and expand cooperation in trade, investment and other areas.

Chinese Premier Wen Jiabao, in his talks with visiting Grenada Prime Minister Keith Mitchell, said the two countries have strengthened cooperation and strengthened ties since they resumed diplomatic ties in January this year.

"Facts have proven that developing mutually beneficial cooperation on the basis of the Five Principles of Peaceful Coexistence between China and Grenada conforms to the fundamental and long-term interests of both countries," Wen said.

China attaches importance to its relationship with Grenada, and appreciates Grenada's hope to develop bilateral ties.

"I believe the China-Grenada relations can surely score greater development through our joint efforts," he said.

The premier called on the two countries to plan for future development of their relations in an all-round way, saying the two sides should strengthen exchanges between governments, parliaments and political parties to boost political mutual trust.

The two countries should also promote non-governmental exchanges and expand cooperation in areas like culture, education and tourism, so as to lay a foundation at the grassroots level for the friendship of the two countries, Wen said.

The two countries should also work for close coordination and cooperation in international affairs to boost South-South cooperation and promote common development.

Wen said economic and trade relations constitute an important part of bilateral relationship between China and Grenada, and although the scale is "limited" at present, there is potential for their complementary economies.

China will implement the action plan of economic and trade cooperation adopted at the 2005 ministerial-level meeting for China-Caribbean Economic and Trade Cooperation, to push forward China-Grenada cooperation in trade, investment, finance, agriculture, fishery and other areas, Wen said.

"China will, within its own capacities, continue to support and assist Grenada in its country's economic and social development," he said.

Mitchell also reiterated that Grenada will continue to pursue the one-China policy, and the Chinese premier expressed appreciation over it.

Mitchell agreed with Wen on his proposals for further consolidating and developing bilateral relations.

He said China is a country of important influence in the world, and developing Grenada-China relations is conducive to the development of Grenada's economic and social growth and will bring benefits to the people of Grenada.

Grenada is confident about the prospect of developing the friendly and cooperative ties with China, he said, hoping that the two sides could expand cooperation in trade, investment, tourism and other areas.

(Xinhua News Agency July 9, 2005)