President Jiang Zemin and visiting Indonesian President Abdurrahman Wahid held talks in Beijing on December 1. Both sides agreed to develop a long-term, stable, good- neighborly and trusting relationship that covers all forms of cooperation.

The fact that President Wahid chose China as the destination of his first state visit since he assumed office demonstrates that he attaches great importance to developing relations with China, Jiang said.

"We are highly appreciative of the fact," the Chinese president added.

The relations between China and Indonesia generally have witnessed smooth development since the two resumed bilateral diplomatic ties about ten years ago, Jiang said, citing the mutual exchange of visits and bilateral cooperation in economy, trade, technology, culture and other areas.

The two countries understand and support each other and have maintained close cooperation in international affairs since the Asian financial crisis erupted, Jiang noted. This bond signifies that it serves the fundamental interests of the peoples of the two countries to safeguard Sino-Indonesian friendly and cooperative relations.

Jiang emphasized that China and Indonesia, both big countries in Asia, have no conflict in their fundamental interests. Great potential in many fields exists in Sino-Indonesia cooperation, he said.

China is ready to work with Indonesia to further enhance bilateral cooperation, Jiang stated, saying that the two sides should conduct multi-faceted exchanges, increase mutual understanding and strengthen bilateral collaboration in economy, trade, science and technology.

He went on to say that the two nations should take the advantage of their natural and human resources and advance bilateral trade and investment on the basis of mutual benefit. China and Indonesia should also reinforce their cooperation in international and regional affairs, Jiang noted.

China and Indonesia are both developing countries and the two share similar or identical views on some major international issues, Jiang continued, adding that China is willing to increase consultations with Indonesia in the United Nations and other multilateral international occasions, to jointly defend the interests of the developing countries.

Jiang said that China supports the effort made by Wahid's administration in safeguarding the country's unification and territorial integrity. The stability and prosperity of Indonesia is conducive to the peace and development in the region, and China hopes that Indonesia would continue to play an active role in regional affairs and contribute to advancing Sino-ASEAN cooperation, Jiang said.

Wahid agreed to Jiang's proposal to develop bilateral ties. The new Indonesian government places great emphasis on relations with China, and believes that with China's entry into the WTO, its international status will be greatly upgraded, and its role in world affairs will also increase, he said.

Indonesia hopes to develop overall cooperative ties with China, he stressed.

Wahid invited Jiang to visit Indonesia at a convenient time, and Jiang expressed his gratitude.

Wahid said the Indonesian government would not fail to let Indonesians of Chinese origin share equal rights with other ethnic groups and to be fully integrated into society.

Jiang expressed appreciation over Wahid's positive attitude on the issue. He stressed Chinese Indonesians have long been a member of the Indonesian society and made great contribution to the country's economic construction, and they should enjoy equal rights and obligations with rest of the citizens.

Prior to the talks, Jiang presided over a welcoming ceremony in honor of Wahid, who arrived in Beijing this afternoon for a three- day state visit.