China has decided to offer a total of US$900 million of preferential buyer's credit loans to the other five members of the Shanghai Cooperation Organization (SCO), Chinese President Hu Jintao announced in Tashkent Thursday.

Hu made the remarks in a speech at the annual summit meeting of the SCO that was attended by presidents of Russia and other four central Asian nations of Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

China made the decision with the aim to boost economic cooperation and trade among members of the SCO, he said, adding the economic cooperation and the fight against three forces of terrorism, separatism and extremism are the two key areas the SCO should work on.

"We should fully take advantage of the high complementary economy among members and the rich natural resources and start cooperation in various forms," Hu said.

The SCO has decided to establish five specialized working groups concerning e-commerce, customs, quality inspection, investment promotion and transportation facilitation.

Hu said that five groups should start to work as soon as possible and put forward proposals for closer economic cooperation among the members.

Security has been a priority issue of the SCO, which was founded by Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan in 2001 in Shanghai. The six members adopted a joint convention on the fighting against "three forces" of terrorism, separatism and extremism when it was founded.

At the current meeting, the six countries adopted an agreement on the cooperation in the fighting against illegal dealing on drugs.

Members should also expand cooperation in culture, education, science and technology, tourism and press, Hu said.

In addition, Hu stressed that the SCO should participate in world and regional affairs in a constructive and open manner, and "make greater contribution to world peace and development."

"Over the past three years, the SCO has made a firm step forward to reach its fundamental goal of ensuring sustained peace and development among member countries," he said. "The SCO has become a path of strengthening mutual trust and cooperation, a mechanism to effectively promote regional security, stability and development, and a constructive force in world and regional affairs."

Other members of the SCO have put forward their proposals in different areas.

Kazakh President Nursultan Nazarbayev said the SCO should find better ways to implement relevant agreements and cooperative documents.

Kyrgyz President Askar Akayev said members should strengthen cooperation in areas of energy and transportation.

Russian President Vladimir Putin said a peaceful reconstruction of Afghanistan is of vital importance to central Asia's stability. He proposed to establish a liaison mechanism between the SCO and Afghanistan.

Tajik President Emomali Rakhmonov proposed to fully exploit the role of the SCO Secretariat and the Regional Anti-Terrorist Structure to meet challenges.

Uzbek President Islam Karimov proposed to establish a Central Asia Common Market.

The six heads of state agreed that next year's summit meeting will be held in Kazakhstan.

Following their half-day meeting, the presidents signed a number of documents including the Tashkent Declaration, and agreements on jointly cracking down on drugs and spiritual medicines, among others.

(Xinhua News Agency June 18, 2004)