Chinese Premier Zhu Rongji stressed in Beijing on December 27 that the Kosovo issue should be properly settled on the basis of respecting the sovereignty and territorial integrity of Yugoslavia, and guaranteeing the legitimate rights of all ethnic groups in the country.

Zhu made the remarks when meeting with visiting Foreign Affairs Minister of Yugoslavia Zivadin Jovanovic.

China and Yugoslavia share traditional friendship and bilateral cooperative ties have scored further development in various fields, said Zhu, adding that China appreciates Yugoslavia's adherence to the "one-China" policy and support for China's peaceful reunification cause.

Jovanovic congratulated on China's resumption of the exercise of sovereignty over Macao. Highly evaluating the policy of "one country, two systems" put forward by Deng Xiaoping, he said that Yugoslavia will continue to pursue the "one-China" policy.

Both countries have friendly and cooperative ties, and both sides have been carrying out mutually-beneficial cooperation on the basis of mutual trust. "Yugoslavia hopes to engage itself in long-term and comprehensive cooperation with China," he added.

Jovanovic arrived in China on December 25th for a five-day official visit, at the invitation of his Chinese counterpart Tang Jiaxuan.