Extracts.

Chinese President Gives New Year's Address.
 
Chinese President Jiang Zemin delivered his New Year's Address Monday
evening to Chinese of different ethnic groups and compatriots living in Hong
Kong and Macao special administrative regions, Taiwan, and overseas, as well
as to friends from all foreign countries.

Chinese President Jiang Zemin delivered his New Year's Address Monday
evening to Chinese of different ethnic groups and compatriots living in Hong
Kong and Macao  special administrative regions, Taiwan, and overseas, as
well as to friends from all foreign countries.

In his address, broadcast by China Radio International, Chinese Central
Radio Station and Chinese Central Television, the Chinese president hailed
the great achievements made in all fields by the Chinese people in 2001.

In the past year, Jiang said, China has continued to broaden its reforms,
and to expand its opening-up, keeping to the policy of increasing domestic
demands, pushing forward economic restructuring and developing the western
region. China has continued to maintain a relatively rapid economic growth,
despite of the big slowdown in the global economy.

Meanwhile, China has made further advancements in boosting its ethical and
cultural progress, legal system, and various social undertakings, he noted.

He went on to recall a series of major events which have occurred in the
past year, including the celebration of the 80th founding anniversary of the
Communist Party of China, the entry into the World Trade Organization, the
successful bid for the 2008Olympic Games, and the hosting of the Informal
Meeting of Leaders of the Asia-Pacific Economic Cooperation.

The president expressed his belief that in the new year, boosting peace and
continuing development will remain the common aspiration of all nations.
"Peace is a prerequisite for the development and prosperity of the world,"
he stressed. 

Jiang pledged that China will continue to pursue an independentforeign
policy of peace and make unceasing efforts toward buildinga new, fair and
reasonable international political and economic order by working with all
nations, to jointly build up a world of peace, development and progress.

"Poverty, confrontation and war are spreading in some parts of the world,"
he said, noting that terrorism is posing a severe threat to world peace and
security. 

He repeated China's willingness to cooperate with other countries and use
the United Nations to the full, to join in cracking down terrorism and
ensure people of all nations create their own fulfilled life in a peaceful
and tranquil environment.

Jiang spoke highly of multipolarism and globalization as well as of the fast
development of science and technology, saying they have brought about rare
opportunities for the development of all nations.

However, he warned that developing countries have not fully enjoyed the
benefits of globalization nor the progress of science and technology and are
encountering serious difficulties in development.

China, as a developing country, is willing to make an effort toboost the
development of other developing countries and to eliminate poverty and
hunger worldwide, while working on its own development, he said.

In the new year, China will work toward the complete reunification of the
motherland by adhering to the basic policy of"Peaceful Reunification and One
Country, Two Systems" and the Eight Proposals of the cross-straits relations
which he put forward himself in 1995, the president said.

In the new year, he said, the Communist Party of China will convene its 16th
Congress to further clarify the targets and tasksfor China's development in
the new century. 



****


Pakistan Reiterates for Peaceful Solution of Disputes With India.

Pakistan on Monday reiterated its call for resolution of all issues with
India through peaceful means, saying it was now for New Delhi to respond.

Pakistan   on Monday reiterated its call for resolution of all issues with
India  through peaceful means, saying it was now for New Delhi to respond.

"We have maintained throughout in the past and since the crisis started that
we want solution of all issues through peaceful means, through negotiations,
through talks," Foreign Office spokesman Aziz Ahmed Khan said at a regular
news briefing here.

Khan said Pakistan made several offers in this regard and had always
welcomed the opportunity where the discussions could be held and
belligerence avoided.

"The ball is in India's court," he said , adding "we have always been ready
for talks but it is for them to respond."

"It is for them to come forward. We would certainly welcome opportunity," he
added. 

"We would also like that the Indian government de-escalate the situation,
defuse tension and follow the path of negotiation and diplomatic channel to
defuse the situation and resolve any situation that arises between the two
countries," Khan said.

Khan said that Pakistan would welcome any message from India as far as
resolution of situation through diplomatic means was concerned.

"We will certainly respond to that and we will engage with India through
diplomatic means as we had been asking them in the past," he added.

He said that Pakistan expected from all the friendly countries to intervene
as far as diffusion of tension was concerned

On Pakistan's stand against terrorism, Khan said that Pakistan had in the
past taken action and cooperated with the international community and would
continue do so as far as the fight against terrorism was concerned.

"Pakistan has stood against terrorism, Pakistan has itself been a victim of
terrorism," he said.

Khan said that action would be taken against any group, individual or
organization indulged in terrorist activities. "But that is because of
Pakistan's principled position against terrorism, the position that Pakistan
has always taken," he added.




****

Indian PM Focuses on Relations With Pakistan In New Year Message.
 
Indian Prime Minister Atal Bihari Vajpayee said on Monday that India would
intensify efforts in the search for peace if Pakistan sheds its "anti-India
mentality" and demonstrates "matching sincerity" to have peace.

Indian Prime Minister Atal Bihari Vajpayee said on Monday that India would
intensify efforts in the search for peace if Pakistan  sheds its "anti-India
mentality" and demonstrates "matching sincerity" to have peace.

"Shed your anti-India mentality and take effective steps to stop
cross-border terrorism, and you will find India willing to walk more than
half the distance to work closely with Pakistan to resolve, through
dialogue, any issue, including the contentious issue of Jammu and Kashmir,"
Vajpayee wrote in an article titled "We Shall Triumph Against Terrorism",
released by the semi-officialPress Trust of India (PTI).

The five-page article, to be published and broadcast on Tuesdayas the prime
minister's New Year Message to the country, focuses almost fully on the
India-Pakistan ties, the PTI noted.

"Our efforts (for peace) will be further intensified, if Pakistan
demonstrates its matching sincerity to have peace with India," said
Vajpayee, adding that "it is for Pakistan to make theright choice".

The prime minister said that after the December 13 terrorist attack on the
Indian Parliament, New Delhi had "made certain legitimate demands of the
government of Pakistan".

"Its (Pakistan's) sincerity to fight terrorism will be determined by the
positive response to these demands," he said. "We also hope that our friends
in the international community will bring requisite pressure on Pakistan to
give up its double standards on terrorism."

Describing the current situation faced by the country as "unprecedented",
Vajpayee said "India does not want war", but at the same time asked the
Indian people to "be prepared for any eventuality" and also "be prepared to
make sacrifices". 

To win a "decisive victory" against terrorism was India's New Year resolve,
the prime minister concluded.

Arrest "A Step Forward in Correct Direction"
India on Monday termed as "a step forward in the correct direction" reports
from Pakistan of arrest of leaders of two militant outfits which India
claimed were responsible for the December 13 terrorist attack on the Indian
parliament. 

"If this information is confirmed, then it is a step forward inthe correct
direction," Indian External Affairs Minister Jaswant Singh was quoted as
saying by the Press Trust of India (PTI).

India had received information about "some action" having been taken by
Pakistani authorities against the two outfits including arrest of their
leaders and raids being conducted on some of theirpremises, Singh noted.

"We hope that such actions against terrorist groups targeting India
including Jammu and Kashmir would be pursued vigorously and cross-border
terrorism eliminated," he added.

According to another PTI report, India on Monday handed over toPakistan a
list of 20 terrorists and criminals involved in "heinous crimes" in India
and sought their extradition.

Pakistan Deputy High Commissioner Jaleel Abass Jilani was summoned to the
Indian foreign office and handed over the list, anIndian External Affairs
Ministry spokesperson was quoted as saying.

Meanwhile, Indian Defense Minister George Fernandes on Monday warned
Pakistan that India would have to take "very demanding" decisions if its
diplomatic efforts to make Islamabad accede to Indian demands regarding
terrorism failed. 

"So far we have concentrated on the diplomatic offensive and this will
continue till one concludes that an end of the road in terms of diplomacy is
reached," the defense minister, who is inspecting along the western borders,
was quoted as saying by the PTI while addressing troops.

****


Arafat Calls on Israelis to Reach Peace With Palestinians.

Palestinian leader Yasser Arafat on Monday called on the Israelis to reach
peace with the Palestinians in a new year speech to the Palestinian people
and the world. 

Palestinian leader Yasser Arafat on Monday called on the Israel is to reach
peace with the Palestinians in a new year speech to the Palestinian people
and the world. 

"I call for a bright future for your (Israeli) children and our children to
live in peace, forgiveness and co-existence on the holy land and in the
Middle East," Arafat said in the televised speech delivered at his office in
the West Bank town of Ramallah.

In the speech, which also marked the 37th anniversary of the Palestinian
Revolution, Arafat said that "we raise our hands to make the peace of the
brave and end the reality of occupation, settlements, aggressive crimes and
siege." 

It was the third televised speech made by Arafat in the past three weeks, in
which he reiterated the Palestinians' wish to end more than 15 months of
bloodshed between Israel and the Palestinians.

"It is true that there are people in Israel who do not want to see the end
of the violence and the establishment of a Palestinian state, they still see
a solution by their warplanes and tanks to make our people kneel," Arafat
said. 

More than 1,100 people, mostly Palestinians, have been killed in the
Israeli-Palestinian bloodshed.

****



Iran Refutes New York Times Anti-Iran Allegations.

Iranian Foreign Ministry spokesman Hamid Reza Asefi on Monday categorically
dismissed as fabricated an article in New York Times alleging there were
contacts between Iranian security officers and representatives of the
al-Qaeda network in 1996.

Iranian Foreign Ministry spokesman Hamid Reza Asefi on Monday categorically
dismissed as fabricated an article in New York Times alleging there were
contacts between Iranian security officers and representatives of the
al-Qaeda network in 1996.

Asefi criticized certain U.S. media, including the New York Times, for
publishing the unfounded story suggesting any link between Iran and the
terrorism network, headed by Osama bin Laden, the prime suspect of the
September 11 terror attack in the U.S..

"The Islamic Republic of Iran's transparent position in condemnation of
terrorism, the Taliban and the al-Qaeda proves the baselessness of such
allegations," Asefi was quoted by the IRNA news agency as saying.

Iran was quick in denouncing the terrorist attacks on the U.S., with
President Mohammad Khatami calling for organized international actions
against the phenomena, thus sending out signals that Iran could be a
coalition partner rather than a potential target.

****

Gulf Arab Nations Sign Economic Union Agreement.

The six members of the Gulf Cooperation Council (GCC) here on Monday signed
an agreement to introduce an economic union in 2003 by unifying customs
tariffs at 5 percent and a single currency by 2010.

The six members of the Gulf Cooperation Council (GCC) here on Monday signed
an agreement to introduce an economic union in 2003 by unifying customs
tariffs at 5 percent and a single currency by 2010.

The agreement was signed at the 22nd GCC summit, which closed in the day.

The deal replaces a joint economic agreement signed when the GCC, an
economic, political and security bloc, was established in 1981 to give big
boost to regional cooperation.

According to the agreement, the GCC will unify their customs tariffs at 5
percent as of January 1, 2003, two years ahead of schedule, as a major step
to realize economic integration in the Gulf region.

A single currency will also be launched by 2010 among the GCC member states,
namely, Bahrain, Kuwait , Oman, Qatar, Saudi Arabia and the United Arab
Emirates. 

Economic topics are high on the agenda of the two-day Muscat summit, which
was held at a crucial time amid the current regional and international
situation. 














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