China signs free trade pact with Pakistan http://in.today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2006-11-24T230917Z_01_NOOTR_RTRJONC_0_India-277635-9.xml&archived=False
Fri Nov 24, 2006
By Robert Birsel
ISLAMABAD (Reuters) - China signed a free trade pact with old ally Pakistan on Friday as visiting Chinese President Hu Jintao promised to bolster ties to a new level.
Hu arrived in Pakistan on Thursday on the first visit by a Chinese president in a decade. His visit also marks the 55th anniversary of diplomatic relations which analysts describe as Pakistan's most stable.
The two countries signed 18 agreements including the free trade pact which they hope will boost trade from $4.26 billion last year to $15 billion within five years. Separately, Chinese companies struck 13 deals worth $3 billion.
Hu travelled to Pakistan from India where he agreed with leaders to expand economic relations, sweep away mistrust and speed up efforts to resolve border disputes.
Analysts said Hu was keen to demonstrate that China's growing ties with India would not come at Pakistan's expense.
"China will continue to view its relations with Pakistan from a strategic and long-term perspective," Hu told a news conference with Pakistani President Pervez Musharraf
"We are ready to work together with Pakistan to raise our strategic partnership onto a new level."
Analysts believe China has supported Pakistan's missile and nuclear weapons programme for decades and it is also Pakistan's main supplier of conventional arms.
There had been speculation the two countries would sign an agreement on helping Pakistan build new nuclear power stations. China has already helped Pakistan build a 300-megawatt nuclear plant and is building a second of the same capacity.
No deal was announced although Hu promised nuclear energy cooperation.
In an address to the Pakistani nation later on Friday, Hu hailed Pakistani support on what he described as issues affecting China's core interests. He mentioned Taiwam, Tibet, human rights and "the fight against East Turkistan terrorist forces", referring to Islamic separatists in China's west.
"It is Pakistan, again, that has over the years extended valuable support to China. This is something we in China will never forget," he said.
"WRONG TO BLAME A RELIGION"
Hu said China appreciated Musharraf's vision of "enlightened moderation" for Pakistan, which has suffered from Islamist and sectarian violence in recent years. He also hailed cultural diversity and said no one religion should be blamed for conflict.
"One should not make irresponsible remarks about the internal affairs of other countries simply because of differences ... It is equally wrong to blame a particular civilisation, nation or religion for some problems or conflicts in the world."
Earlier, Hu signaled that China would remain even-handed when it came to Pakistan's decades-old dispute with India over the divided Himalayan region of Kashmir.
"China sincerely hopes to see peace and stability maintained on the sub-continent," he said when asked about Kashmir, the cause of two of the three wars nuclear-armed India and Pakistan have fought since 1947.
Hu said China appreciated and supported peace efforts by Pakistan and India, adding: "We are very much committed to playing our constructive role for peace, stability and development of the subcontinent."
In addition to the free trade agreement, China and Pakistan signed a five-year plan to boost economic ties.
Hu was due to travel to the city of Lahore on Saturday and will leave Pakistan on Sunday.
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