Chinese State Councilor Tang Jiaxuan met in Beijing Monday with John Hamre, president and CEO of the Center for Strategic and International Studies (CSIS) of the United States.

Tang said the development of China-US relations is in the fundamental interests of the two peoples and is conducive to peace,stability and development in the Asia-Pacific region and the worldat large.

The two countries have conducted effective coordination and cooperation in such fields as counter-terrorism, trade and economy,the Korean nuclear issue, Iraqi and Afghan reconstruction, said Tang.

US Vice President Dick Cheney had recently concluded a fruitfulvisit to China, Tang added.

On the Taiwan issue, Tang said the Chinese Government will abide by the policy of peaceful reunification and "one country, two systems", and spare no efforts to settle the Taiwan issue in apeaceful way, but will never tolerate "Taiwan Independence".

Tang cautioned the US side not to send any "wrong signals" to the Taiwan authorities in view of the sensitive and complicated nature of the situation in the island.

Hamre, also former US deputy defense secretary, said the UnitedStates will continue to follow the one-China principle and opposesany words or deeds by Taiwan leaders attempting to change Taiwan'sstatus quo.

Tang welcomed the academic exchanges between the CSIS and China,hoping the exchanges will play a role in pushing forward bilateralrelations.

Source: Xinhua