China and UAE to deepen energy cooperation

BEIJING, June 1: China and 22 Arab states agreed today to promote cooperation on energy and in fighting terrorism.

The Arab countries are China's largest crude supplier, accounting for nearly 44 per cent of its oil imports last year, the official Xinhua news agency said.

''The two sides attach importance to energy cooperation, particularly cooperation in the sectors of oil, natural gas and renewable energy,'' said the action plan signed by China's Foreign Minister Li Zhaoxing and Arab League Secretary-General Amr Mahmoud Moussa at the end of a China-Arab forum in Beijing.

Trade volume between China, the world's second largest oil consumer, and the Arab world is more than 50 billion dollars, and the two hoped it could double by 2010, Moussa said. The two sides planned to hold a meeting on oil within the next two years.

China also said it supported Moussa's call for the establishment of a nuclear-free West Asia, a reference to the dispute over Iran's nuclear research, which Western countries have demanded it halt for fear it is a cover for making weapons.

''All countries in the region should abide by relevant pacts on prohibiting nuclear weapons and weapons of mass destruction,'' said a separate communique agreed at the end of the forum.

The two also agreed in the communique to step up anti-terrorism cooperation, an issue that was brought to the forefront of the forum when China invited a representative of Hamas, the Islamic militant group sworn to Israel's destruction, to attend.

''We think the Palestinian government was legally and democratically chosen by the Palestinian people and should receive the general respect of the international community,'' Foreign Ministry spokesman Liu Jianchao told a news briefing.

Liu said earlier this week China would use the opportunity of the visit by Hamas Foreign Minister Mahmoud al-Zahar to call on the group to renounce violence and recognise Israel.

Hamas's election in January prompted the European Union and United States to cut off hundreds of millions of dollars in aid, but Liu left open the possibility that China would continue to provide financial assistance.

''During this visit, I have not heard that China planned to discuss the issue of financial aid,'' he said.

But he added: ''The Chinese government has always paid attention to the Palestinians' humanitarian situation, and will continue to provide as much humanitarian aid as it can.''

REUTERS