Chinese President Jiang Zemin and visiting President Leo Falcam of the Federated States of Micronesia held talks at the Great Hall of the People Monday afternoon to further develop bilateral relations.

Jiang extended a warm welcome to Falcam and said the fact that the president chose China as the first country to pay an official visit fully shows his emphasis on relations with China. Jiang said that Falcam's visit would greatly contribute to further developing and promoting understanding, friendship and cooperation between the two countries.

As to bilateral relations, Jiang said since the establishment of diplomatic ties in 1989, bilateral ties have made much progress. All presidents of Micronesia have visited China, and this shows that it is the common understanding of each Micronesian administration to develop relations with China. Visits like these have greatly deepened mutual understanding and friendship and played an important role in stimulating bilateral ties, he noted.

Jiang added that bilateral cooperation in economy, trade, culture, and education has been fruitful, and China's aid projects in Micronesia have produced sound economic and social results. Falcam said relations between Micronesia and China have been further consolidated since the forging of diplomatic ties. He described China as a close friend of Micronesia, expressing the conviction that friendship between the two countries will last forever.

He also reaffirmed that Micronesia would adhere to the one China policy.

Falcam invited Jiang to visit his country and Jiang thank Falcam for the invitation.

After the talks, Jiang and Falcam attended a signing ceremony on economic and technological cooperation between the two governments.

Monday afternoon, Foreign Minister Tang Jiaxuan held talks with his Micronesian counterpart Epel Ilon. Vice-Minister of Foreign Trade and Economic Cooperation Zhou Keren, also held talks with Micronesian minister in charge of economic affairs Sebastian Anefal.

Falcam arrived in Beijing Sunday for a six-day visit at the invitation of President Jiang.