Wen, also member of the Political Bureau Standing Committee of the Chinese Communist Party Central Committee, made the remarks here Friday at a meeting with Khamtay Siphandone, president of the Central Committee of the Laotian People's Revolutionary Party and Laotian president.

Wen said bilateral relations are close and that cooperation in various fields is fruitful, citing the increase in bilateral trade and Chinese investment in Laos in recent years, the remarkable achievements in labor and project engineering, and the close coordination in regional cooperation.

Wen also said China has decided to reduce or forgive Laotian repayment of certain loans provided by China, and China will give Laos some 50 million yuan (about six million US dollars) in aid.

He pointed out that as long as the two countries continue to strengthen their relations, the Sino-Laotian relationship is bound to have bright prospects.

Khamtay, who is on a three-day state visit to China, said overall bilateral cooperation and good-neighborly friendship have entered a new stage of development, and the Laotian side appreciates China's assistance over the years.

Laos will work with China to explore new ways and spheres for bilateral cooperation in such fields as agriculture, mining, communications, energy and regional cooperation, added Khamtay.

(Xinhua News Agency June 14, 2003)