China and Vietnam have agreed to properly handle their dispute over the South China Sea, according to the consensus reached at the second meeting of the China-Vietnam steering committee on cooperation held on Wednesday.

The meeting was co-chaired by Chinese State Councilor Tang Jiaxuan and Vietnamese Deputy Prime Minister and Foreign Minister Pham Gia Khiem.

The two agreed to properly handle the problems in bilateral ties, such as the South China Sea dispute, to ensure the steady and healthy development of bilateral ties.

The two sides also agreed to maintain frequent contacts of senior leaders of both countries, expand economic and trade cooperation, strengthen cooperation in fighting transnational crime and terrorism, promote cultural exchanges, and enhance coordination in major international and regional issues.

Tang said at the meeting that China had always regarded China-Vietnam relations with a strategic and long-term point of view and promoted their healthy and steady development.

He said it was in the interests of both countries and both peoples to strengthen friendship, deepen practical cooperation and realize mutual benefits.

Pham said it was a priority of Vietnam's foreign policy to develop relations between Vietnam and China and the two political parties, and Vietnam has devoted itself to continuously promoting friendship between the two peoples and bilateral cooperation in various fields.

Pham said the Vietnamese party and government firmly adhered to the one-China policy, considered Taiwan as an inalienable part of China's territory, supported China's reunification cause, and opposed "Taiwan independence" activities of any form, including the "UN membership referendum".

Tang appreciated Pham's remarks.

The China-Vietnam steering committee on cooperation convenes meetings annually in principle, and is held in turn in the two countries. The first meeting was held in November 2006 in Hanoi.

(Xinhua News Agency January 24, 2008)