When addressing the Mongolian parliament, the Great Hural, Hu said that the two countries should develop political trust through the partnership.

They should respect each other's independence, sovereignty and territorial integrity as well as the policies and the course of development, said Hu.

He added that disputes between the two countries should be resolved in a spirit of consultation, cooperation and friendship.

The Chinese president proposed the expansion of mutually-beneficial cooperation and cultural, scientific and personnel exchanges between the two neighbors.

He also stressed the necessity of enhancing cooperation in the field of security, suggesting that efforts should be made to maintain peace along the border and to enhance cooperation in international and regional affairs.

The new partnership, regarded as the most important outcome of Hu's 26-hour visit to Mongolia, has lifted bilateral ties between the two neighbors to a new stage on the basis of the 1994 revision of a treaty pledging for friendship and cooperation.

Both China and Mongolia reaffirmed the importance of developing bilateral ties in a joint statement released Thursday, with China describing it as "an important part of China's diplomacy with its neighbors.''

Encouraged particularly by the growth in trade and economic cooperation, Hu vowed during the speech Thursday that China will work with its northern neighbor to improve trade and economic cooperation, adding the nation will also continue to provide assistance within its capacity to Mongolia.

In addition to helping to build a new road linking China and Mongolia, China will push for the expansion of trade with Mongolia and encourage Chinese enterprises to invest there, said Hu.

Hu's visit is a sign that the new leadership of China will continue to give priority to fostering good relationship with its neighbors in Asia, a tradition in the nation's foreign policy.

"China's development is an opportunity rather than a threat to Asia,'' said Hu during the speech. "The new leadership of China will continue to treat its neighbors with equality and live in harmony with them.''

He said China will enhance high-level visits and political dialogue with its neighbors for better understanding and push for the establishment of a new concept of security based on trust, reciprocity, equality and coordination. Efforts should also be made to bring about regional and sub-regional cooperation mechanisms, Hu added.

The Chinese president also met separately with the Speaker of Mongolia's Great Hural Sanjbegziyn Tomor-Ochir and Prime Minister Nambar Enkhbayar Thursday.

According to a Chinese foreign ministry spokesman, Hu told Enkhbayar that China is willing to attach special importance to bilateral cooperation in the tapping of natural resources and the infrastructural construction, urging related departments to work out feasible measures to convert words into deeds.

Hailing Hu's visit as "historic,'' Enkhbayar added Mongolia also stands willing to enhance cooperation with China in such areas as education and humanities.

During his meeting with Tomor-Ochir, Hu was quoted as describing parliamentary exchanges as an important part of nation-to-nation relations.

He hoped the legislative bodies of the two countries will continue to carry out exchanges on various levels.

(China Daily June 6, 2003)