Extracts.

CPC Is Historically Proved Great, Glorious and Correct: Article
The 80-year old Communist Party of China (CPC) has been proved to be a
great, glorious and correct party; the leadership of the CPC has been an
inevitable option both for the Chinese people and for the development of
China's history; the New China would be nonexistent without the CPC, and it
is impossible to modernize China without the leadership of the CPC.
These accomplishments were emphasized in a signed article, titled "Great
History and Brilliant Achievements", published by Xinhua News Agency Monday.
The country is about to celebrate the 80th anniversary of the founding of
the CPC, which falls on July 1.
The article recalled the achievements of the CPC over the past 80 years, in
its efforts to integrate Marxism-Leninism with China' s realities; establish
the New China after decades of armed struggles against warlords, the
Kuomintang regime and the Japanese invaders; set up a socialist system by
dealing with all difficulties; and launching the ongoing reform and opening
drive. 
Over the past 80 years, the three generations of central leadership with Mao
Zedong, De Xiaoping and Jiang Zemin at the core, respectively, have made
enormous contributions to the development of the CPC, the victory of the
socialist revolution, and the development of the socialist cause, it said.
In its history, the Party has made two major theoretical leaps, with the
first made by the first generation leadership to find China's own road of
revolution and create Mao Zedong Thought, and the second made by the second
generation leadership to find China' s own road of construction and create
Deng Xiaoping Theory, according to the article.
The third generation leadership has been upholding the great banner of Deng
Xiaoping Theory and continuing to enrich and creatively develop the theory
by proposing that the Party should always earnestly represent the
development requirements of China's advanced social productive forces, the
progressive course of China 's advanced culture, and the fundamental
interests of the overwhelming majority of the Chinese people, it noted.

**** 

Analysis: Russia-US Dialog Fails to Iron Out Differences
Russia <http://www.peopledaily.com.cn/english/data/russia.html> n President
Vladimir Putin and US President George W. Bush held their first meeting in
Ljubljana, the capital of Slovenia on June 16. Judged from the situation of
their meeting, although Putin and Bush both indicated that their dialog was
"positive", "laying a sound foundation" for both sides to establish and
develop a pragmatic relationship, no major breakthrough was made in
Russian-US relations, and it remains hard for both countries to bridge over
their differences in questions relating to global security and in such
issues as the Balkan situation.

The first meeting between the Russian and US presidents extended about 45
minutes longer than originally planned. After the meeting was over, Putin
and Bush both attended a press conference. Bush indicated that Russia is a
world big country, constructive cooperation between the United States
<http://www.peopledaily.com.cn/english/data/usa.html>  and Russia would
bring more security and prosperity to the world. Bush said his first meeting
with Putin was an important step toward the establishment of constructive
US-Russian relations, both countries agreed that they would conduct
extensive dialogs on a series of questions about carrying out constructive
cooperation between the two countries. Putin has accepted invitation to
visit the United States set for this fall, Bush has also accepted the
invitation Putin extended to him to visit Russia.

Bush indicated that it was necessary to establish a brand-new US-Russian
relationship, he believed that after the meeting, the two countries "can
become reliable partners and friends, the two presidents have discussed and
agreed to prevent the proliferation of large-scale antipersonnel weapons and
jointly attack terrorism". He said that during the Cold War period, peace
was built on the basis of possible elimination of the opposite side, but
"now we have become friends, we must enter into cooperation". He disclosed
both sides had decided through consultation to continue developing
cooperation to jointly solve such regional issues as the Balkan,
Nagorno-Karabahaskaja AO and Afghanistan
<http://www.peopledaily.com.cn/english/data/afghanistan.html> . Bush said
the United States and Russia had agreed to conduct conscientious and regular
consultations concerning the nature of the two countries' security
relations. For this end, he has instructed US Secretary of State Colin
Powell and Defense Secretary Donald Rumsfeld to continue consultation with
the Russian side on establishing a new security framework for the two
countries. The two leaders also discussed questions concerning economic
cooperation between the two countries, they unanimously agreed that the
current bilateral economic ties did not match the economic strength of the
two countries. The two sides also studied questions relating to cooperation
in the aspects of energy, space technology and the construction of Caspian
Sea oil pipelining. Bush indicated that the United States was willing to
increase investment in Russia, in order to boost Russia's economic
development. To achieve this, he will send Finance Secretary Paul 0'neill
and Commerce Secretary Evans to go to Russia for further discussions with
the Russian side on related issues. Putin said that the meeting was candid
and constructive, both sides had discussions on a wide range of problems,
and that the talks had enabled both Russia and the United States to find a
basis for expanded cooperation. Russia and the United States were currently
engaged in active cooperation, and they wished, through joint efforts, to
establish a constructive, realistic and foreseeable Russian-US relationship.

It is noteworthy that although the press conference proceeded in a lively
atmosphere and the two sides were trying to create a sound atmosphere, the
two sides failed to achieve substantive progress in major issues concerning
global security. 

On the question relating to the missile defense system plan, Putin firmly
expressed Russia's determination to oppose the United States program for
establishing a national missile defense (NMD) system. He said that Russia
and the United States bear special responsibility for safeguarding world
peace and stability and for establishing a new international security
framework, all these require close bilateral cooperation and international
cooperation, any unilateral action may possibly bring difficulties in
solving problems appeared in modern society. He gave further explanations,
saying that the ABM (Anti-ballistic Missile Treaty) signed in 1972 by the
Soviet Union and the United States remains today the basic cornerstone of
international security.. With regard to the eastern expansion of NATO, Putin
said that Russia does not regard NATO as a hostile organization, but Russia
does not understand why NATO makes step-by-step offensive. He asked in
reply, "As a military organization, NATO is pressing hard toward Russia's
border, why?" 

At the press conference, Putin displayed to the reporters a recently
deciphered document: A note sent by the Soviet government to NATO member
states in 1954. The note indicated the intention of the Soviet government to
join the NATO. Putin also disclosed to the reporters NATO's reply to the
Soviet Union at that time: "There is no need to discuss such a totally
unrealistic proposal."

Observers have noticed that in his speech delivered in Warsaw before the
meeting, Bush indicated that the United States would not change its original
intention of supporting NATO's eastern expansion and its program for
deploying the NMD system. From the meeting between Bush and Putin this time,
it can be seen that the Russian-US relationship, cooling down due to the NMD
system program since the new Bush administration took office and the
"espionage war disturbance", is being improved. But no matter how hard Bush
is lobbying and explaining, the US aim to contain and weaken Russia has not
changed, the differences between Russia and the United States in such major
issues as the ABM treaty, NATO's eastern expansion and their respective
strategic interests are hard to bridge over.

****

Chinese, Russian Presidents Talk on Phone
Chinese President Jiang Zemin had a phone conversation with Russian
President Vladimir Putin by appointment Monday evening in Shanghai.
Putin briefed Jiang on his meeting with U.S. President George W. Bush on
June 16 in Ljubljana, capital of Slovenia. Jiang thanked Putin for the
briefing. 
Jiang said that he had taken notice that, in his meeting with Bush, Putin
reiterated the principled position that the Treaty on the Limitation of
Anti-ballistic Missile Systems is a foundation stone for international
security. The Chinese side appreciates it, Jiang said.
Jiang said that Putin and Bush had both expressed their willingness to
resolve the differences and problems in Russia-U.S. relations through
dialogue and consultations.
Jiang said he believes the dialogue and cooperation between Russia and the
United States can help maintain world peace, security, and stability, Jiang
said. 
Bush said that he will meet Jiang during the APEC meeting to be held in
October in Shanghai and visit China, the Chinese president said, adding that
he welcomes that. 
He said that he hopes this will help promote mutual understanding between
China and the United States and the development of relations between the two
countries. 
Putin said that the founding of the Shanghai Cooperation Organization (SCO)
is an important event of historical significance. He thanked Jiang for the
hospitality he was treated to during the SCO summit not long ago.
Putin said that he is looking forward to Jiang's state visit to Russia.
Jiang thanked Putin for his contributions to the success of the SCO summit
which concluded several days ago. Jiang said that he is also looking forward
to meeting with Putin in Moscow.



****

DPRK Rejects US-Selected Topics for Negotiations
The Democratic People's Republic of Korea
<http://www.peopledaily.com.cn/english/data/dprk.html>  (DPRK
<http://english.peopledaily.com.cn/data/dprk.html> ) Monday criticized
Washington for unilaterally setting out topics for proposed talks with
Pyongyang, saying Washington intends to "disarm" the DPRK by doing so.

A Foreign Ministry spokesman said in a statement that the issue of
compensation for electricity shortage caused by the U.S. delay in building
promised light-water reactors should be first discussed at the negotiations.

In response to U.S. President George W. Bush's June 6 proposal to resume
negotiations with the DPRK, the spokesman said U.S. attempt to set out and
make public topics like nuclear, missile and conventional armed
forces-related issues even before the two sides sit down, is unacceptable to
the DPRK. 

"We cannot construe this other than an attempt by the U.S. to disarm the
DPRK through negotiations," reads the statement carried by the official KCNA
news agency. 

Questioning Washington's sincerity, the spokesman said such dialogues should
be conducted on a fair and equal footing.

"We cannot but interpret the U.S. administration's proposal for resuming
dialogue as unilateral and conditional in its nature and hostile in its
intention," the spokesman said.

"The DPRK's conventional armed forces can never be a subject of discussion
before the U.S. forces are pulled out of South Korea," the spokesman said.

The spokesman called for the implementation of the provisions of the 1994
DPRK-U.S. agreed framework and the 2000 DPRK-U.S. Joint Communique,
concerning the DPRK's nuclear and missile projects respectively.

"The most realistic and urgent issue at present as regards the
implementation of the DPRK-U.S. agreed framework... is to handle in a
responsible manner the grave situation where the LWR (light- water reactor)
provision is too much delayed," he said.

Under the 1994 Geneva framework agreement between the U.S. and the DPRK,
Washington agreed to provide two light water nuclear reactors and heavy oil
as fuel energy to the DPRK. In return, the DPRK promised to phase out its
graphite reactors capable of producing materials that can be used to make
nuclear weapons. But the light-water project has made little progress so far
and caused a power shortage to the DPRK.

In a landmark visit to Washington by DPRK leader Kim Jong Il's envoy, Cho
Myong Rok, in October 2000, Pyongyang and Washington signed a joint
communique in which Pyongyang promised to stop launching long-range missiles
while talks on the missile issue continue.

After Bush came to power in January, he shut the door for U.S.- DPRK talks,
saying relations with Pyongyang needed an overall review.

****


China, Macedonia Sign Joint Communique on Normalization of Relations
Chinese Foreign Minister Tang Jiaxuan
<http://english.peopledaily.com.cn/data/people/tangjiaxuan.shtml>  and his
Macedonian counterpart Ilinka Mitreva signed Monday Joint Communique Between
the People's Republic of China and the Republic of Macedonia on the
Normalization of Relations.

The full text of the Joint Communique goes as follows:

I. The Government of the People's Republic of China and the Government of
the Republic of Macedonia, in conformity with the interests and desires of
the two peoples, have decided to normalize relations between the two
countries effective from June 18 of 2001.

II. The Government of the People's Republic of China and the Government of
the Republic of Macedonia are determined to conform to all the principles of
the "Joint Communique between the People' s Republic of China and the
Republic of Macedonia on the Establishment of Diplomatic Relations". The two
Governments have agreed to develop friendly relations and cooperation in
conformity with the principles of mutual respect for sovereignty and
territorial integrity, mutual non-aggression, non interference in each
other's internal affairs, equality and mutual benefit and peaceful
coexistence. While maintaining sound political relations, both sides have
agreed to make positive efforts to expand exchanges and cooperation in other
fields, in particular the economic and trade field. Both sides have
expressed their willingness to strengthen cooperation in international
organizations. The Government of the republic of Macedonia recognizes
emphatically that there is but one China in the world, that the Government
of the People's Republic of China is the sole legal government representing
the whole of China and that Taiwan
<http://english.peopledaily.com.cn/data/province/taiwan.html>  is an
inalienable part of the Chinese territory, and confirms that it shall not
enter into official relations in whatever form or to engage in any official
exchanges with Taiwan.

III. The Government of the People's Republic of China and the Government of
the Republic of Macedonia have agreed to mutually re- establish embassies as
soon as possible and exchange ambassadors. The two sides will, on the basis
of mutual benefit and in accordance with international practice, mutually
provide all necessary assistance for the performance of the functions of
their respective diplomatic representatives.


****


Taiwan Cuts Ties with Macedonia
Taiwan <http://english.peopledaily.com.cn/data/province/taiwan.html>
severed "diplomatic" ties with Macedonia on Monday as the Balkan nation
prepared to restore relations with China's mainland.

Taiwan will immediately close its "embassy" in Skopje and halt all
cooperation projects, and will lodge a protest with Macedonia, said "Foreign
Ministry" spokeswoman Katherine Chang.

Macedonia had announced over the weekend that it would cut ties with Taipei
in favor of Beijing
<http://english.peopledaily.com.cn/data/province/beijing.html> 's support.

Macedonian Foreign Minister Ilinka Mitreva has not yet formally signed an
agreement to establish ties with China's mainland, but Chang said ``we have
a grip and understanding on the contacts'' between the two sides.

The move leaves Taiwan with just one European ally, the Vatican, among the
small group of nations that extends diplomatic recognition to Taiwan.
Taiwan's 28 remaining allies are mostly small, poor nations in Latin
America, Africa and the Caribbean.

****


Israeli Warplanes Violate Lebanese Air Space: TV Station
Israel <http://english.peopledaily.com.cn/data/israel.html> i warplanes
Monday morning broke sound barrier and invaded into Lebanon
<http://www.peopledaily.com.cn/english/data/lebanon.html> , the Lebanese
National Broadcasting Network (NBN) TV station reported.

Several Israeli fighters violated Lebanese air space and hovered over the
Bekaa Valley, eastern Lebanon, and in mountainous areas in central Lebanon,

The planes broke several sound barriers, which could be heard in Beirut,
said the report, without revealing whether the Lebanese army fired back to
the planes. 

The U.N. Interim Force in Lebanon (UNIFIL) has recorded 447 air invasions by
Israeli planes into Lebanon from last October to the end of May, NBN said.

U.N. Secretary General Kofi Annan promised to Lebanese President Emile
Lahoud during his visit here last Friday that he would raise the problem to
Israeli leaders. 

Lebanon called on the United Nations and the international community to
exert pressure on Israel to stop the invasion of Lebanese airspace.

Israel withdrew its troops from south Lebanon last May after a 22-year
occupation. However, the Jewish country has not stopped the violation of
airspace of Lebanon, which virtually has no air defense ability.

















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