China hopes to establish and develop good-neighborly and mutually beneficial relations with the East Timor on the basis of the Five Principles of Peaceful Co-existence, said Foreign Minister Tang Jiaxuan during meeting with Jose Alexandre Xanana Gusmao, leader of the independence movements of East Timor and chairman of CNRT on January 24.

Tang said that China hopes to be good neighbor and partner of East Timor. Tang announced that the Chinese government will donate 50 million yuanin aid this year for East Timor's reconstruction.

During their talks, both Tang and Xanana exchanged views on issues of mutual concern, and reached consensus on the promotion of relations between China and East Timor in the future, a ForeignMinistry source said.

Xanana arrived in Beijing this morning for a four-day visit to China.

Tang said that the Chinese government respects the choice made by the East Timorese people in settling the East Timor issue, which he described as being left over by history. China has all along been working for settling the issue in an appropriate approach.

"We are delighted that the situation in East Timor has stabilized thanks to the efforts made by the United Nations and relevant parties, and all work during the transition period to East Timor's independence is on the track," Tang said.

China holds that all countries, big or small, should be equal, said Tang, adding that China will continue to send personnel to participate in building a new East Timor and will take into consideration the establishment of representative organizations in East Timor.

In return, Xanana briefed Tang on the latest development in East Timor and thanked the Chinese government for its understanding and support.

East Timor places great importance on the China's important role in international and regional affairs, and hopes to establish and develop normal relations with China as soon as possible, Tang said.

He reiterated that East Timor will always follow the one China policy, for which Tang expressed appreciation.

Earlier today, Xanana also discussed China-East Timor economic relations with Chinese Foreign Trade Minister Shi Guangsheng.