The two leaders discussed the Taiwan issue and the nuclear issue of the Democratic People's Republic of Korea (DPRK). Jiang said China seeks a peaceful solution to the issue of the DPRK nuclear program. And Bush said the US side opposes the independence of Taiwan.

"We said in Shanghai last year that the two countries have wide-ranging common interests and should develop a constructive cooperative relationship," Jiang said, adding that over the past year, bilateral relations have gained momentum as bilateral cooperation has been further expanded and mutual understanding deepened.

China and the United States share important common interests in a broad range of areas and the two sides should widen mutual exchanges and cooperation in all fields, and enhance dialogue and coordination on major international and regional issues, so as to push forward the development of the Sino-US constructive cooperative relationship, said the Chinese president.

For his part, Bush said the United States and China share common interests in many major issues, and he expressed the hope that the two countries can establish a strong, friendly relationship. The American people have showed great interest in Jiang's current visit, he said.

The two leaders believed that it's very important to maintain top-level strategic dialogues and contacts between the two countries and agreed to enhance such contacts.

The two sides agreed to strengthen exchange and cooperation in anti-terrorism, and to hold the third round of anti-terror consultations within this year. They also agreed to conduct cooperation on the security of container transportation and trade.

Jiang emphasized that the Taiwan issue is of far-reaching influence on Sino-US relations. The Chinese government adheres to its basic policies of "peaceful reunification" and "one country, two systems" on the issue.

He said that China has been making the utmost efforts for a peaceful settlement of the Taiwan issue in its efforts to realize the reunification of the motherland. The problem is that the forces seeking "Taiwan independence" are trying every possible wayto damage the prospect of a peaceful resolution. The separatist activities of the "Taiwan independence" forces constitute the biggest threat to stability across the Taiwan Straits and to the development of Sino-US relations, he said.

He hoped that the US side would stick to the one China policy and the three Sino-US communiques, and play a constructive role inthe peaceful reunification of China.

Bush said the US side understands the sensitivity of the Taiwanissue, adheres to its one China policy and opposes the independence of Taiwan. The United States appreciates China's stand on the peaceful resolution of the Taiwan issue, he said, adding the above-mentioned policy of the US government will remainunchanged.

Jiang said: "We live in a colorful and diversified world, in which different social systems and patterns of development co-exist for a long period of time, learning from each others' strongpoints for common development in competition and comparison." This,the Chinese president said, is a manifestation of advancement of human civilization.

The two sides also exchanged views on such issues as human rights and religion, and agreed to enhance mutual understanding and broaden consensus through dialogue and in the spirit of mutualrespect and equality.

On the Iraqi issue, Jiang said the Chinese side has consistently held that Iraq should implement relevant UN Security Council resolutions seriously and comprehensively, while a political solution should be found within the framework of the United Nations and on the basis of the resolutions.

On the nuclear issue of the DPRK, Jiang pointed out that China has consistently supported the non-nuclearization of the Korean Peninsula and wishes to see peace and stability on the peninsula. The two leaders agreed that the two sides keep in consultation with each other on the issue and make joint efforts to ensure thatthe issue is resolved peacefully.

Jiang invited Bush to visit China again and the US president accepted the invitation with pleasure.

It is learnt that US Vice President Dick Cheney will pay a formal visit to China early next year at the invitation of his Chinese counterpart, Hu Jintao.

The two sides agreed on the resumption of bilateral military exchanges, and will hold consultations at vice defense ministeriallevel on defense and carry out other exchanges in the near future.The two sides also decided to establish a consultation mechanism at vice foreign ministerial level on issues of strategic security,multilateral arms control and anti-proliferation.

Attending the talks were Chinese Vice-Premier Qian Qichen, ViceForeign Minister Li Zhaoxing, Chinese Ambassador to the United States Yang Jiechi, US Ambassador to China Clark T. Randt, Jr., Secretary of State Colin Powell and Condoleezza Rice, Bush's national security adviser.

After the talks, Bush accompanied Jiang and his wife on a tour of his ranch and held a banquet at his home in honor of the Chinese guests later at noon.

(Xinhua News Agency October 26, 2002)