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China and Arab League member countries yesterday announced the establishment of the China-Arab Co-operation Forum, marking a "milestone" in the history of close ties between China and Arab states.

The establishment of the forum will further enrich Sino-Arab relations and raise the level of co-operation between the two sides generally, Chinese Foreign Minister Li Zhaoxing told journalists at a press conference yesterday.

Arab League Secretary General Amr Moussa (R) meets Chinese President Hu Jintao at the League headquarters in Cairo January 30, 2004. [Reuters]

Visiting President Hu Jintao, who is currently on a state visit to Egypt, yesterday held a meeting with Arab League Secretary-General Amr Moussa and representatives from Arab states.

Hu put forward four proposals for the expansion of ties with Arab countries to enrich China-Arab relations under "new international circumstances."

Hu's four proposals include strengthening mutual support and mutual political trust, expanding mutually-beneficial economic co-operation, exploring wider channels for friendly exchanges in the cultural arena and maintaining close co-ordination in regional and international affairs.

China and Arab countries, as developing nations, are facing common tasks and challenges, and they can work together in terms of economic growth and social development, Li said.

"Under the new international circumstances, the gap between the poor and the rich is increasing throughout the world. China and Arab countries share common interests and should jointly work for economic development," Li said.

Moussa said that there is still great potential between the two to boost economic ties, noting that he hoped co-operation in the areas of economy, trade, science and technology will be further promoted in the future.

China has expressed support for the forum, originally proposed in 2000,and is committed to setting it up step-by-step, said Zhai Jun, director of the Ministry of Foreign Affairs' Department of West Asian and North African Affairs.

The forum will cover a broad range of fields including politics, economic and trade issues, culture, education, health and sports, according to Zhai.

At yesterday's press conference, both Li and Moussa gave no further details on the forum, such as when the first assembly would take place, but said that relevant documents were being prepared.

On Thursday, Hu and his Egyptian counterpart Hosni Mubarak held a two-hour talk at Mubarak's palace in a posh Cairo neighbourhood.

Hu raised several proposals to expand strategic co-operative ties with Egypt, one of China's closest partners in the Middle East.

Hu proposed maintaining frequent communication between the leaders,the expansion of economic co-operative channels for oil ventures, subway construction, aviation, human resources training, as well as the service industry. He also said the two countries should continue to promote exchanges in culture, education, tourism and journalism and to strengthen co-ordination in international and regional issues.

"Egypt is eager to increase co-operation with the Chinese in oil and gas speculation," said Sameh Fahmi, minister of petroleum, adding that the latest oil discoveries in Egypt have attracted investment from multi-national companies.

According to a memorandum of understanding signed on Thursday, the two countries will exchange expertise in the oil and petrochemical fields, according to Fahmi.

Turning to the current situation in the Middle East, Hu said that China appreciates and supports efforts made by President Mubarak and the Egyptian Government to ease regional tension.

The Chinese Government has made its own contribution to easing the current tension, and is willing to maintain and promote consultation and co-ordination with Egypt and other Arab countries in this respect, and continue to play a positive role in realizing peace and stability in the Middle East.

Mubarak said that Egypt attaches great importance to developing its ties with China, and praised fruitful co-operation between China and Arab and African countries.

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