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Chinese Premier, Pakistani President on Pakistan-India Tension It is in the fundamental interests of both Pakistan and India that the two countries keep maximum restraint and safeguard peace and stability in the south Asian region, said Premier Zhu Rongji Thursday evening in a meeting with Pakistani President Pervez Musharraf, who was in Beijing in transit to Nepalese capital Katmandu. It is also the common expectation of the international community that they handle their ties in such a way, Zhu said. Musharraf was in Beijing in transit to Nepalese capital Katmandu for the summit conference of the South Asian Association for Regional Cooperation (SAARC). Musharraf hopes for peace and opposes war During the meeting, Musharraf gave account of the current situation of the relations between Pakistan and India, and stressed that Pakistan hopes for peace and opposes war, and it is willing to ease the tension through dialogue. Musharraf said that based on the national interests of the country, the Pakistani government has already taken and is taking necessary measures to combat terrorism and contain extremism, with extensive understanding and support from various walks of life in Pakistan. Zhu appreciated for Pakistan's measures against terrorism Zhu extended his understanding and appreciation for Pakistan's active participation in international cooperation on combating terrorism and its measures against terrorism. Zhu expressed appreciation for the Pakistani side's adherence to seeking dialogue and peace under the current tension between Pakistan and India. He hoped the SAARC summit would play a positive role in easing the tension in the South-Asian region and strengthening cooperation in the region. Two leaders spoke highly of Pakistan-China ties During the meeting, Zhu also spoke highly of Musharraf's visit to China not long ago, noting that the visit has injected new impetus into the friendly cooperation between China and Pakistan in the new century. He conveyed Chinese President Jiang Zemin <http://english.peopledaily.com.cn/data/people/jiangzemin.shtml> 's greetings to Musharraf. Musharraf expressed appreciation for the friendship cherished by President Jiang Zemin and the Chinese government, noting the considerate arrangement for his transit by the Chinese side fully demonstrates the close ties between Pakistan and China. Musharraf to fly to Nepal on chartered plane of China A Pakistan airline company has chartered a Southwest China Airlines plane for Pakistan's President Pervez Musharraf to fly between Chengdu, the capital city of southwest China's Sichuan <http://english.peopledaily.com.cn/data/province/sichuan.html> Province, and Kathmandu, the capital of Nepal. This was confirmed by Foreign Ministry spokesman Sun Yuxi when asked about the transit by Musharraf via China to Nepal. Relevant Chinese departments have offered convenience in this regard in accordance with the requests of the Pakistan side, he said. **** Musharraf to Fly to Nepal on Chartered Plane of China. A Pakistan airline company has chartered a Southwest China Airlines plane for Pakistan's President Pervez Musharraf to fly between Chengdu, the capital city of southwest China's Sichuan Province, and Kathmandu, the capital of Nepal. A Pakistan airline company has chartered a Southwest China Airlines plane for Pakistan's President Pervez Musharraf to fly between Chengdu, the capital city of southwest China's Sichuan Province, and Kathmandu, the capital of Nepal. This was confirmed by Foreign Ministry spokesman Sun Yuxi when asked about the transit by Musharraf via China to Nepal. Sun said the Pakistan side recently expressed to the Chinese side that, in view of the current relations between Pakistan and India, President Musharraf is to go to Kathmandu via China for the summit conference of the South Asian Association for Regional Cooperation. Relevant Chinese departments have offered convenience in this regard in accordance with the requests of the Pakistan side, he said. Chinese Premier Zhu Rongji met with Musharraf Thursday evening during the president's transit through Chinese territory. **** US Prepares Bombings in Somalia: Newspaper. US and its allied military forces are stepping up aerial-reconnaissance flights over Somalia in preparation for raids against al Qaeda terrorist bases in the African nation, the Washington Times (WT) reported on Thursday. U.S. and its allied military forces are stepping up aerial-reconnaissance flights over Somalia in preparation for raids against al Qaeda terrorist bases in the African nation, the Washington Times (WT) reported on Thursday. U.S. intelligence officials disclosed that some 100 al Qaeda terrorists were identified recently in Somalia. They were spotted as part of the Islamic rebel group there known as Al-Ittihad Al- Islam, said the officials who spoke on the condition of anonymity. The Mogadishu-based group, known as AIAI, is linked to Somali warlord Hussein Mohammed Aideed and has close ties to Osama bin Laden's al Qaeda terrorist group in Afghanistan <http://www.peopledaily.com.cn/english/data/afghanistan.html> . "Somalia will likely be next," said one U.S. defense official familiar with defense planning. The reconnaissance flights over Somalia include aerial surveillance by U.S. EP-3, British Nimrod and French Atlantique aircraft, the officials said. The number of flights increased sharply last week, they said. The aircraft are helping identify targets for future bombing raids, such as terrorist training camps in the southern and northern parts of Somalia and port facilities, the official said. U.S. intelligence reports over the last several months have stated that weapons from terrorists in Afghanistan have been transported to Somalia on the Horn of Africa. **** New Claims for Jobless Benefits in U. S. Increase Sharply. New claims for unemployment insurance in the U.S. shot up for the second week in a row, suggesting many workers are still suffering from an economy that is trying to claw its way out of a recession. New claims for unemployment insurance in the U.S. shot up for the second week in a row, suggesting many workers are still suffering from an economy that is trying to claw its way out of a recession. For the work week ending Dec. 29, new claims for jobless benefits jumped a seasonally adjusted 36,000 to 447,000, the highest level since the beginning of December, the Labor Department reported Thursday. The week before, new claims rose 26,000, according to revised figures. That was a much bigger increase than the 7,000 gain previously reported. A government analyst offered no specific reason for the big increases. The number of workers continuing to receive unemployment checks also surged, rising 42,000 to 3,715,000 for the week ending Dec. 22. To cope with the ailing economy, which fell into recession in March, companies have cut production, trimmed hours and let workers go. A spate of recent economic reports, however, provided some signs that the recession might be bottoming out. On Wednesday the Institute for Supply Management reported that a rise in new orders to factories helped push its key gauge of manufacturing activity higher in December. Reports released last week showed that consumer confidence rebounded in December, home sales surged in November and demand for many big-ticket items posted gains in November. Yet, even against this encouraging backdrop, many economists say the nation's unemployment rate �� a lagging economic indicator �� will continue to rise in the coming months because companies will be reluctant to hire back workers. The jobless rate jumped to 5.7% in November. Many economists predict that when the government releases the employment report for December on Friday, it will show the jobless rate climbed to at least 5.8%. They also are forecasting job losses during the month to total around 150,000 to 175,000. To revive the economy, the Federal Reserve cut interest rates 11 times in 2001. Many economists believe those rate reductions will help the economy stage a recovery by the spring. Economists say the jobless rate could top out at close to 7% by that time. **** Bush Decides to Extend Libyan Sanctions. U.S. President George W. Bushhas decided to extend U.S. economic sanctions imposed on Libya in 1986 to January 7, 2003. U.S. President George W. Bushhas decided to extend U.S. economic sanctions imposed on Libya in 1986 to January 7, 2003. "The crisis between the United States and Libya that led to the declaration on January 7, 1986, of a national emergency has not been resolved," Bush said in a letter to U.S. Congress on Thursday. **** Ford Sales Drop in 2001. Capping off a troubled year that included the Firestone tire controversy, the departure of CEO Jacques Nasser and declining earnings, Ford Motor reported Thursday its sales dropped 6% in 2001 from a year earlier. Capping off a troubled year that included the Firestone tire controversy, the departure of CEO Jacques Nasser and declining earnings, Ford Motor reported Thursday its sales dropped 6% in 2001 from a year earlier. Sales during December for the nation's second biggest automaker were only three-tenths of a percent better than in December 2000, hurt by a 25% drop in passenger car sales. But its F-series pickup trucks remained the best-selling vehicle in the United States for the 20th straight year, Ford said. General Motors also saw sales fall in 2001, but just by about 1%. In December, GM sales rose 7%, boosted by interest-free loans and strong truck demand. The world's largest automaker limited its interest-free loan offers in December, but added extra rebates at the end of the month to boost sales. GM said earlier on Thursday it was replacing its zero-percent financing offers with a $2,002 rebate on most of its models. Results do not include U.S. automakers' foreign brands. BMW of North America reported an 11% decline in vehicle sales last month compared with December 2000. For the year, the German automaker posted a 12.5% increase, making 2001 its best sales year to date in the United States. Strong sales of its new A4 model powered Audi of America to its best- U.S. sales during 2001. For the year, sales of Audi vehicles were up 3.6% over 2000, despite a 3% decline during December. Volkswagen of America reported a half-percent increase in sales over 2000, and a 9.3% increase in December compared with a year earlier. Volvo Cars of North America recorded its best year in the United States, selling 125,710 vehicles, 2,532 vehicles or 2% more than it sold during 2000. Reflecting the resurgence of South Korean automaker Hyundai Motor America, the company reported record December sales, up 39% from a year earlier. For the year, Hyundai's sales rose 42% over 2000. _________________________________________________ KOMINFORM P.O. 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