On the afternoon of June 16, Foreign Ministry Spokesperson Liu Jianchao held a regular press conference.

Liu: Good Afternoon! Let me begin with one announcement:

At the invitation of US Secretary of State Condoleezza Rice and Foreign Minister of Luxembourg, the rotating EU presidential country, Jean Asselborn, Foreign Minister Li Zhaoxing will attend the international conference on Iraq at Brussels on June 22nd.

Now I'm ready to take up your questions.

Q: Secretary-General of Shanghai Cooperation Organization(SCO) Zhang Deguang said yesterday that, the anti-terrorist cooperation between SCO and non-member countries as well as other organizations will be discussed at the upcoming SCO summit in Kazakhstan. Can you introduce SCO's agenda on anti-terrorism and what non-member countries will SCO conduct anti-terrorist cooperation with? What international organizations will participate in the summit? Besides, Secretary-General Zhang also mentioned that SCO will complete its process of trade integration in goods, technology and services within 20 years. Why will it take 20 years? Will SCO establish special fund and banking union to fund the projects of member countries? How much capital will be pooled into the fund? What does banking union mean?

A: I have also noticed the report on Mr.Zhang Deguang's talk. Mr.Zhang Deguang is Secretary-General of SCO, not the representative of Chinese Government. It is not proper for me, as the spokesperson of China's Foreign Ministry, to explain his remarks and viewpoints. The issue of anti-terrorism has always been on the discussion agenda of SCO at all levels, including top leaders, foreign ministers and other senior officials. Combating the "three forces " is also a very important mission of SCO.

I don't have information at my hands on the participation of non-member countries outside SCO and other international organizations in the summit. SCO is an open organization and ready to conduct exchanges with other non-member countries and other international organizations, which help both sides enhance mutual understanding and promote cooperation.

Regarding economic and trade cooperation between member countries of SCO, it is another important task facing SCO to conduct economic and trade cooperation and promote development in its own region after SCO completes it initial founding stage. Combating "three forces" and promoting economic and trade cooperation are two wheels carrying SCO forward. Therefore, we attach great importance to various forms of economic and trade cooperation within the framework of SCO and work for the welfare of peoples in the region and all member countries of SCO.

The last question is a very specific one. If possible, I advise your to interview Secretary-General Zhang Deguang. He will provide you with more information.

Q: In the agreement reached in 1994 between US and the DPRK, the DPRK closed down two nuclear reactors in Yongbyon. Recently, the DPRK Government told a US expert that, they had re-launched the nuclear reactors. What comment does China have over the issue? In China's view, is DPRK a nuclear state or a non-nuclear state? Second question, it is said that US Defense Secretary is likely to visit China this autumn, can this visit be achieved in China's view? What significance does US Defense Secretary's visit to China have on the two countries?

A: Regarding your first question, we have repeatedly said here that, China doesn't know the status of DPRK's nuclear development. We hope that the Korean peninsula can be nuclear-free, that relevant issue and concerns of all parties can be resolved within the framework of the Six-Party Talks, and that misgivings be cleared within the framework. We hope all sides to make active and constructive efforts towards this direction.

As for your second question, China attaches great importance to exchanges with the US in military field, so as to enhance mutual understanding and trust. We welcome US defense officials including Rumsfeld himself to visit China, and hope relevant exchanges can promote our bilateral cooperation in military and other fields.

Q: Can you brief us on Indonesian President 's visit to China next month?

A: China and Indonesia, as two countries of great importance in their own region, have good cooperation in all fields. We also have frequent high-level mutual visits and exchanges. The mutual visits and face-to-face contacts between high-level leaders has an important and indispensable role in promoting bilateral relations. We welcome Indonesian President Susilo to visit China at his convenience. Specific arrangements are still under consultation. China attaches great importance to this visit and will extend the president our friendly and enthusiastic hospitality.

Q: This week, the International Fund for Animal Welfare sent a letter to China's Foreign Ministry, requesting China not to support Japan's efforts to expand hunting whales. The IFAW said that , over the past five years, China supported Japan on 59 out of 60 motions. Is that true? Since China itself doesn't whale, why does it support Japan? Besides, last week, China's official to the UN said the Six-Party Talks will be restored within a few weeks. Can that be achieved?

A: I want to brief you on China's basic principles on the issue of whaling. We advocate active conservation with reasonable utilization. The whale resources should be utilized in a limited way on the basis of sufficient scientific after conducting prudent research and reaching consensus through consultation.

As for your second question, an early resumption of the Six-Party Talks is the common aspiration of all relevant parties and international community. Recently, we have also noticed all relevant parties conduct helpful contacts, including contacts between US and the DPRK. We are pleased with relevant progress and hope all parties concerned can continue to make concrete and constructive efforts to promote an early resumption of the Six-Party Talks. As to when the Talks will be held, we haven't got a timetable.

Q: Christopher Hill, the US Representative to the Six-Party Talks said the other day that China had not done enough to push the North Korea back to the Six-Party Talks. Do you have any comment?

A: The Chinese side has all along undertaken active and painstaking efforts to push for the solution of the nuclear issue on the Korean Peninsula, which is universally recognized by the international community. We think that mutual respect is an important foundation for the restart of the Six-Party Talks. We hope that relevant parties, particularly those principal parties to the issue, could make positive and constructive endeavor in this regard.

Q: China has already solved the textile dispute with the European Union. What problems or major differences remain between China and the EU? It is learned that the European Commission President Jose Manuel Barroso will visit China in mid July. Please confirm that and brief us on his agenda in the visit.

A: China and the EU are strategic partners of comprehensive cooperation. The overall development of our bilateral relations is good, and the cooperation in various aspects is also smooth. As the bilateral relations has developed to the current level, it is just natural that differences would emerge in various fields such as economy, trade and ideology. I think both sides are more than capable to treat and handle such differences on the basis of equality and candor, just as what happened in the recent case in textile disputes. So long as both sides proceed from the overall interests of the Sino-EU relations and start from the basis of frankness and equality, we'll be able to solve any complicated issue. At present, still some issues still remain unresolved between China and the EU, including the issue of the EU's arms embargo on China. We hope that this issue could be settled appropriately, so that this obstacle to the development of Sino-EU relations could be removed and that the Sino-EU relations could be further developed in an all-round way.

The upcoming visit to China by Mr Barroso is an important event in the development of the Sino-EU relations. Specific arrangement on this visit is still being discussed. I will brief you on that once I have confirmed messages in that regard.

Q: The EU is considering to conduct an anti-dumping investigation on China's footware. Do you have any comment on that? Will China take retaliatory measures in this regard? Will China and the EU reach an agreement similar to the one on their disputes over textile trade?

A: We hope that we can, like what we have done in settling the textile trade disputes, reach an agreement or understanding on the issue of footware, so that the economic and trade cooperation between China and the EU could develop smoothly. As to how to resolve this problem, please refer to the Ministry of Commerce. I think my colleague in the Ministry of Commerce would discuss this issue with the EU side.

Q: Chairman of Japan's Association of Bereaved Families of the War Dead Koga Makoto said on 11th of this month that Prime Minister Koizumi should consider the feelings of neighboring countries and seek their understanding on the issue of paying homage to Yasukuni Shrine. What comment does China have? Can this be perceived as a victory of China's diplomatic strategy towards Japan?

A: China's diplomatic strategy to Japan, or in other words China's policy towards Japan, is to adhere to the principle of "taking history as a mirror and facing towards the future" and make efforts to develop with Japan good-neighborly friendship from generation to generation. Such a long-term friendship is beneficial to the peoples of both China and Japan and serves their real interests. There are various viewpoints within Japan on the issue of Japanese leader's homage to Yasukuni Shrine. The positions and proposals put forward by some people, which are conducive to China-Japan friendship and improvement of bilateral relations, deserve attention of the Japanese Government. Meanwhile, we think, Japanese leader's homage to Yasukuni Shrine is not merely a matter of feeling, but a matter of principle. We hope Japanese leader can truly realize the high sensitivity and gravity of the issue and take concrete actions to win the trust of the international community and the peoples of its Asian neighboring countries.

Q: The Foreign Minister of Luxembourg acknowledged yesterday in an exclusive interview with the Xinhua News Agency that the EU has encountered pressure from Japan and the US on the issue of the lifting of the EU arms embargo on China. Some experts are saying that the EU arms embargo on China is unlikely to be lifted this year, as the United Kingdom, a country in an extremely close ties with the US., will hold the next rotating EU presidency. Does the Chinese side agree on that?

A: On the lifting of the embargo, the EU has encountered unreasonable and unnecessary disturbance. Solving such an issue between China and the EU is by no means targeted at a third party or any other country, nor will it harm their interests. It is just unreasonable that some counties would try to block the lifting. We are firmly opposed to such acts. The European side should consider the overall interest of the Sino-EU relations, honor its commitment and lift the embargo at an early date. It will help remove a major obstacle to the development of the Sino-EU relations and promote the development of the bilateral relations in all fields.

Q: On China-Japan relations. Recently, some Chinese media reported that the foreign policy of China had become more self-assertive as Vice-Premier Wu Yi returned abruptly from Japan. Do you have any comment?

A: China's foreign policy is formulated in line with the will of the Chinese people. That is to say, China's diplomacy, as a diplomacy of the Chinese people, serves the Chinese people and the objective of safeguarding world peace and promoting common development. It is an important departure point for China' diplomacy to develop cooperation with the rest of the world in different fields on the basis of the Five Principles of Peaceful Co-existence. We attach great importance to the development of good-neighborly friendship with our neighbors. It is also one of our objectives to develop good-neighborly friendship with Japan and carry it on from generation to generation. We have been making endeavor to this end. However, the improvement and development of the China-Japan relations require both sides to work together. In particular, the Japanese side should follow the principle of "take the history as a mirror and face forward the future" and adopt a correct attitude on the questions of history and Taiwan.

Q: Currently, what's China's position on the expansion of the Security Council?

A: This is a very important question. I don't know if you have noticed the State Councilor in charge of foreign affairs, Mr. Tang Jiaxuan's elaboration on China's position over the issue of the UN reform when he met with the representatives of the Arabic countries to the second senior officials' meeting of the China-Arab Cooperation Forum. His elaboration was very profound, which fully covered the position of the Chinese Government.

China supports the reform of the UN. This position is made out of the consideration for the UN's future and destiny as well as the common interests of all countries. We hold that all reform plans should top priority to the focus of development. With the joint efforts of all countries, the UN set forth its Millennium Development Goals in the year of 2000. We should take this important opportunity of the 60th anniversary of the founding of the UN to further implement the goals. If all parties are occupied with the disputes over the enlargement of the Security Council now, they will not be able to concentrate on the discussion on the issue of development during the September summit and may make such an important summit fruitless. Then it will be a great irretrievable loss to most countries, especially the developing ones. So all countries should make efforts to avoid it from happening. On the reform of the UN, China's position is that we should take into account of the common interests of all countries.

The aim of the UN reform is to strengthen rather than weaken the UN. All schemes on the reform should be based on the views of the majority and a broad consensus. This is a basic demonstration of the democratic international relations. At the moment, if the immature plan is voted on or passed, it will sharpen the antagonism and conflicts among many countries. Under such circumstances, the UN will find it hard to work normally. Its authority and role will also be negatively affected or greatly weakened. We believe this would not be the consequence China as well as the international community wish to see. So we should make efforts to avoid it.

The enlargement of the Security Council is put on the agenda because developing countries are seriously under represented at the UN Security Council. Therefore, it is the foundation as well as the direction of the reform of the UN Security Council to give the developing countries greater say in important international issues. It is also a principle we should adhere to. China cannot accept any kind of reform that run contrary to the principle. We hope the relevant parties to proceed from the future of the UN and the common interests of all countries, and conduct earnest and thorough democratic consultations so as to reach a consensus as broad as possible. China will continue to consult and exchange views with the relevant countries.

Q: During the demonstration related to Japan in April, the Japanese Embassy and Consulate in China were damaged to different degrees. The Japanese side demanded apology and compensation from the Chinese side. How will China react to it?

A: I want to reiterate that the Chinese side will handle the relevant issues with a responsible attitude in accordance with international laws and practices. We are staying in contact with the Japanese side over this issue. I don't think there is a question of apology, as you asked about. This question has already been resolved.

Q: What's the position of China's Foreign Ministry on joining the efforts of international organizations against AIDS? What will China do? What role does the economy play in China's diplomacy? What's China's stance on Germany's bid to be a permanent member of the Security Council?

A: As to the prevention and control of HIV/AIDS, Premier Wen Jiabao held an executive meeting of the State Council yesterday specially on strengthening the work to prevent and control AIDS. On the meeting the thoughts and guidelines for the future work as well as some concrete and effective measures were together put forward. AIDS is an important issue facing the human society in the field of non-traditional security. The international community should step up cooperation on jointly strengthening the prevention and control of AIDS so as to guarantee the health of humanity and the development of the human culture.

Economic diplomacy is an important part of China's diplomacy. The fundamental task of China's diplomacy is to create a good international environment for its development, including a generally peaceful and stable international environment, a friendly neighborhood, and a good security environment. Secondly, China's diplomacy has the task to actively help the departments of economy and enterprises conduct economic exchanges with the outside world, and pave the way for them to make such normal exchanges on an equal and mutually-beneficial basis by creating favorable conditions and expanding facilities and developing the channels for them.

We have reiterated our fundamental position on many occasions over the reform of the UN Security Council. I have nothing to add. As for the hope of the relevant country to play a bigger role in international affairs, the position we have stated remains unchanged.

Q: It is said that President Hu Jintao will visit Britain and attend the G-8 Summit after the July Summit of Shanghai Cooperation Organization. Can you confirm? What's the meaning of China's presence in these activities?

A: We have received the invitation from the British side for President Hu Jintao to attend the dialogue meeting between the G-8 and the five developing countries. We attach great importance to the invitation and are actively considering it. We will release the specific information timely. We attach importance to the role of the G-8 in international affairs, and are willing to step up the exchanges and cooperation with it. The dialogue between the G-8 and the developing countries are helpful to the cooperation as well as the equal and conducive exchanges between developed and developing countries on the issues of common interest.

Q: The US pressured on Israel for its arms sales to China. Will Li Zhaoxing bring forward this issue during his visit to Israel?

A: During his visit to Israel, Foreign Minister Li Zhaoxing will exchange views extensively with the Israeli side on bilateral relations. The Chinese Government attaches importance to developing China-Israel relations. The mutually-beneficial cooperation between China and Israel conforms to the fundamental interests of the people of the two countries, and is conducive to regional peace and stability. We hold that the two sides should adhere to the principle of independence and get over external interferences in developing bilateral relations.

If there is no more question, the press conference is over. Thank you!