Hu ends South Asian trip focused on trade diplomacy

ISLAMABAD, Nov 26 (Reuters) Chinese President Hu Jintao ended a four-day visit to Pakistan today during which he promised to work with Islamabad to elevate strategic ties to ''a new high'' and strengthen trade and economic cooperation.

Hu had visited India immediately before coming to Pakistan, and the Chinese leader avoided taking sides over the South Asian rival's perennial dispute over the Kashmir region, and instead focused on economic partnerships with both countries.

A crowd of well-wishers waving Chinese and Pakistani flags were at the airport in the eastern city of Lahore, as Hu, seen off by Pakistani Prime Minister Shaukat Aziz, left for home at the end of the first visit by a Chinese president for a decade.

Pakistan has treasured its relationship with China, mainly because the East Asian giant offered it a counterweight in dealings with India, and continued to supply arms in the 1990s, when the United States shunned Pakistan because of its nuclear weapons programme.

China has its own territorial disputes with India, and two nations are still trying to overcome decades of mistrust going back to a border war in 1962.

These days, China is keenly focussed on forging economic ties with its neighbours, but analysts said Hu was keen to demonstrate that China's growing links with India would not come at Pakistan's expense.

During Hu's visit to Islamabad, China and Pakistan signed a free trade pact that could boost annual trade from 4.26 billion dollar last year to 15 billion dollar within five years. They also inked a five-year plan to enhance economic cooperation.

China also said it would continue to support Pakistan's nuclear energy programme, though there was no commitment to build six new power plants that Pakistan wants.

While Hu was in New Delhi, China and India agreed to try and double bilateral trade to to 40 billion dollar by 2010.

REUTERS SSC BS1533