Pervez Musharraf, President of the Islamic Republic of Pakistan, said Tuesday that China has emerged as a positive force for economic stability and progress in Asia and the world at large.

At a 40-minute speech at prestigious Peking University, President Musharraf looked forward to China's economic engagement in Central and Southwest Asia "similar to its economic and commercial role across the Asia-Pacific."

"China, which has provided assurance and a safety net to the Southeast Asian economies when these were shaken by the financial crises of 1997 and 1998, could help accelerate development and bring about economic integration within Asia," he said.

President Musharraf expressed his views on China's economic development and the friendship between Pakistan and China.

China's growing political and economic strength and its increasingly important role on the global stage augured well for Asia and the world, he said, adding that China's political weight had been critical for initiating the six-party talks on the Korean nuclear issue and averting a serious crisis in the region.

Musharraf also spoke highly of China's positive role in international affairs: "As a permanent member of the (United Nations) Security Council, China has an important bearing on issues of international peace and security."

President Musharraf reviewed the long-standing friendship, saying, "We will be able to carry forward this time-tested friendship to future generations.

"We must set ambitious targets and pursue our cooperation in economic, commercial and technological fields with utmost vigor."

Speaking of terrorism, Musharraf said, "We clearly don't want to leave the heritage of living in a dangerous place for future generations."

He said that operations against Al-Qaeda and the Taliban, Hamas and Hizbullah would not resolve terrorism, but were of short term value.

"Hopelessness, powerlessness, desperation, injustice and non- resolution of long-standing political conflicts, poverty and lack of education added, are the root causes of terrorism," he said.

He suggested the strategy of "enlightened moderation", which was two-pronged, aiming at Muslims rejecting extremism and opting for socio-economic emancipation, while also allowing the world, especially the West, to help resolve political disputes with justice.

President Musharraf concluded his speech with "Long live Pakistan-China friendship" in Chinese, and answered questions from Peking University students.

Musharraf says Kashmir problem cannot be sidelined

Visiting Pakistani President Pervez Musharraf said in Beijing Tuesday Pakistan wants peace with India but the issue of disputed Kashmir cannot be pushed aside.

"We want to develop peaceful relations with India. We want to have a composite dialogue with them, but Kashmir cannot be allowed to be sidelined," Musharraf said in a speech to Peking University students.

"We want to deal with India on the basis of sovereign equality. We cannot be coerced and we will guard our honor and dignity very jealously."

India and Pakistan have fought three wars since independence from Britain in 1947, two of them over the Himalayan region of Kashmir, and nearly went to war again last year over the disputed area.

Ties have warmed slightly since Indian Prime Minister Atal Behari Vajpayee called for talks in April. The two countries have unveiled a series of largely symbolic measures, including re-staffing diplomatic missions and easing curbs on travel.

But India says dialogue is not possible until the end of "cross-border terrorism," which it accuses Pakistan of backing. Pakistan says it only gives political support to what it calls a legitimate freedom struggle by the mostly Muslim Kashmiri people.

Musharraf said Pakistan had been "making overtures to India to start the process of dialogue and move forward to a resolution of Kashmir."

"Unfortunately we feel that there is a degree of lack of sincerity on the Indian side," he said in answer to a question from a student.

Explosive disputes

Musharraf's speech focused on the root causes of terrorism and extremism and warned of a growing rift in understanding between the Muslim world and the West.

Kashmir and the dispute between Israel and the Palestinians remained dangerous, he said.

"The long-standing conflicts and disputes, in particular Palestine and Kashmir, remain potentially explosive," he said. "These disputes must be resolved on the basis of respect for the wishes of the people involved."

He said that, since the end of the Cold War, the West had increasingly viewed Islam as a religion of extremism and militancy and the Muslim world had increasingly seen itself as being targeted.

"These misperceptions must be rectified because both are wrong," Musharraf said.

He said that at the root of extremism and terrorism were hopelessness, powerlessness, desperation, injustice, poverty and lack of education, and proposed a strategy of "enlightened moderation" to address the problem.

"Operations against al Qaeda and the Taliban, Hamas and Hezbollah are all of short-term tactical value. Long-term strategy lies in addressing the root causes of terrorism," he said.

The Muslim world must "reject extremism and opt for socio-economic emancipation," he said. The rest of the world must help resolve political disputes justly.

(Xinhua News Agency November 5, 2003)