Extracts.



Senior CPC Official Meets Japanese Guests


 China values its relations with Japan, and has been working to expand the
bilateral ties of friendship and cooperation, a senior official of the
Communist Party of China said here Friday.

Wei Jianxing 
<http://english.peopledaily.com.cn/data/people/weijianxing.shtml> , a member
of the Standing Committee of the Political Bureau of the CPC Central
Committee, met with Ishii Ryoichi, president of Japanese Hyogo Teachers'
Union, and his party.

Wei, who is also a member of the Secretariat of the CPC Central Committee
and chairman of the All-China Federation of Trade Unions, said that nearly
30 years have passed since China and Japan normalized their diplomatic ties,
and that thanks to efforts made by several generations, bilateral friendly
relations have developed in all fields.

Recalling the history of Sino-Japanese relations, he said, we should never
forget the damage wrought by the Japanese militarists towards both Chinese
and Japanese peoples during the Japanese war of aggression against China.

Wei expressed his respect for Ishii Ryoichi and the Japanese Hyogo Teachers'
Union for their opposition to the Japanese right- wing's attempt to distort
the war history. 

Ishii Ryoichi said that they should have a correct attitude towards history,
and make unremitted efforts to enhance the long- term friendship between the
two peoples. 

****

Jiang: Peaceful Solution to Mideast Issue Best Policy

Chinese President Meets Arafat


Chinese President Jiang Zemin said Friday that China has always believed
that a peaceful solution to the Mideast issue is the best policy.

Jiang made the remark in his meeting with Yasser Arafat, president of the
State of Palestine and chairman of the Palestinian National Authority.

The Chinese government and Jiang himself has always been concerned with the
development in Mideast, Jiang said.

He paid a visit to the region last year. "I can thus thoroughly understand
the difficult situation of the Palestinian people and feel sympathy for
their suffering and economic losses," he said.

He told Arafat that the Chinese people remain sincere friends of the Arab
people, the Palestinian people in particular, and take a firm, consistent
stance on the just cause of the Palestinian people for resuming their legal
national rights. 

"We appreciate the efforts made by the Palestinian people for adhering to
peace," he said. 

The Chinese people have always stood on the side of the Palestinian people
and supported the efforts made by the international community for quelling
conflict, he said. 

China has supported, and will continue to support, the sending of
international observers to the region of the conflict between Israel  and
Palestine. 

Arafat extended gratitude for the support given by the Chinese leaders,
government and people to the just cause of the Palestinian people.

He briefed Jiang on the random use of force by Israel and consequently the
damage of the peace process in the region.

He also explained the efforts made by Palestine to halt the conflict.

Arafat praised China's steady support for the peace process in the region
and its tireless efforts to calm the conflict made in the United Nations and
other international organizations.

China's support has encouraged the Palestinian people and Palestine will
continue to strive for peace, he said.

Arafat was here for a working visit as guest of Jiang.

****


IMF Says Chinese Economy to Grow 7.5 Percent in 2001
China's near-term economic prospects remained favorable although the
external slowdown would likely dampen the country's growth somewhat, the
International Monetary Fund said Friday.

The country's real gross domestic product (GDP) was forecast to grow 7.5
percent this year, down slightly from the 8 percent growth last year, the
IMF said in its annual review of the Chinese economy.

Inflation will continue to be under control. Consumer prices are projected
to increase by around 1 percent, mainly on account of rising services
prices. 

"Executive directors (of the IMF) commended the authorities for China's
outstanding recent economic performance, with robust growth, easing
deflationary pressures, and a strong external position," the IMF said.

"Looking ahead, although the external slowdown would likely dampen growth
somewhat, they considered that the near-term economic prospects remained
favorable," it added.

But IMF directors said the Chinese authorities face major challenges from
the unfinished reform agenda, especially on the reforms of the financial
sector and the state-owned enterprises.

"Accordingly, they welcomed the authorities' intention to accelerate reforms
to ensure sustained rapid growth and prepare the economy for increased
global competition after WTO accession," the report said.

The IMF said China's WTO accession would bring not only further economic
progress in China but also opportunities for the rest of the world.

****


India to Take First Step Towards Nuclear Weaponization
 
India   will take the first step towards nuclear weaponization of its
missiles in a formal top-level interaction in early October this year,
reported the Pioneer daily Saturday.

Top generals of the Indian armed forces and scientists of the Bhabha Atomic
Research Center, Defense Research and Development Organization (DRDO) and
Bharat Dynamics Limit are scheduled to discuss nuclear weaponization at the
School of Artillery, situated near Nashik, 1,222 kilometers southwest of
here, said the daily.

This would be the first concrete step ever taken by the Indian government
towards nuclear weaponization since India's nuclear tests in May, 1998.

Defense Minister Jaswant Singh, who is also the minister of external
affairs, was expected to participate in the meeting, the paper said..

The experts would discuss the capabilities of Agni missiles, the first
land-based strategic weapon designed to carry nuclear warheads and has been
planned to be inducted into the Indian Army by the year 2002.

The participants were likely to examine the Agni's nuclear warhead carrying
capabilities and the type of nuclear warhead to be fitted on to the missile,
added the Pioneer, which attributed the news to sources in New Delhi.

Meanwhile, it said, the government had cleared the raising of a strategic
rocket regiment for Agni missiles.

The conclusions of the meeting would help the army concretize its nuclear
planning including the conditions bust suited for operationalizing Agni
strategic missiles.

Bhabha Atomic Research Center knows the exact capabilities of India's
nuclear warheads while the DRDO is the only Indian organization with the
know-how to retain a nuclear warhead in the unweaponized state besides the
maintaining and mating procedures with the missile in accordance with the
second strike capability.

The Bharat Dynamics is a government-run defense undertaking entrusted with
the manufacturing of the strategic weapon.














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