Howard had an amiable handshaking with Jiang Shaogao when bidding farewell to each other.

The Australian-China relationship sees a great potential for development, said John Howard, the Prime minister when meeting the delegation of the People's Daily headed by Jiang Shaogao, Deputy editor-in-chief.

"The Australian-China relationship has witnessed a fast development in recent years. I can proudly say that the bilateral relations between us have been so good as never before. Through the sincere efforts of the two governments, the two sides have set up a complete economic framework and under which, the bilateral relations have been strengthened and developed," said J. Howard.

He said, he has visited China for four times since he assumed the office of Prime minister, an Australian Prime minister in office having paid the most visits to China. The Australian-China dialogue and mutual respect have achieved constructive results, diminished the differences and promoted the mutual benefits.

Prime Minister Howard recalled President Hu Jintao's successful visit to Australia. He said, "President Hu Jintao's historic speech at the Australian Senate and the House of Representatives in October 2003 is the symbol for the strong development of the bilateral relations between the two countries." He said, during President Hu Jintao's visit to Australia the two countries signed the trade and economy framework agreement. This has not only promoted the trade relations of the two countries but also showed that the development of the relations between the two countries has a huge potential.

He said, from the cooperation of Hamersley iron ore of 25 years ago to the agreement for liquified natural gas in Guangdong in 25 years to come Australia is China's long-term strategic partner in the field of resources and energy resources. When the contract for liquified natural gas is put into effect in 2006 the liquified natural gas will become Australia's major export goods to China as the iron ore, alumina and the wool. In 2003, among the major exports from Australia to China minerals and fuels accounted for over 50 percent.

Prime Minister Howard advocates actively for strengthening the personnel intercourse of the two countries. He said, "we must not underestimate the importance of personnel exchanges at all levels for they are of great importance. I encourage the strengthening of mutual visits and exchanges of the two sides so as to deepen the mutual understanding and strengthen the bilateral relations."

Jiang Shaogao presented Howard a silk piece of the People's Daily in celebration of Beijing's successful bidding of the Olympic Games.

He said, "so long as we are jointly pushing ahead the further development of the bilateral relations it's beyond doubt that the Australian-China relations will become more solid and see a broader vista in future."

He said, the Chinese communities in Australia have also contributed a great deal in enriching the multielement culture.

When speaking of the trade and economic relations between Australia and the Asia-Pacific region, Howard said, of the 10 Australian export markets, seven are in the Asia-Pacific region. The region serves a key area for the economic development of Australia. He said, Australia has already established an open economy with the lowest tariff, and is going to further strengthen the economic relations with the region by way of free-trade agreement, trade and economic agreements, and through the APEC and the Pacific Islands Forum as well.

As we all know the Olympic Games in Sydney were very successful, he said. The Australia's success relies on its learning from all other cities that have hosted the Olympic Games in the past and follow the practical experiences from the experts. Meanwhile Australia made an early preparation and laid the stress on a unified cooperation. The holding of the Olympic Games has greatly enhanced the reputation of Australia in the field of investment, trade and tourism, and has helped strengthen Australia's ability in sponsoring the large-scaled international sports event. The successful experience of the Olympic Games in Sydney may serve as a reference for Beijing Olympic Games 2008.

Speaking of the role played by Australia at the Pacific Islands Forum, Howard said, in 1971, Australia and other 6 island countries discussed on the problems of trade, transportation, tourism and education that directly affected the life of the peoples of the south Pacific island countries. Now the Pacific Islands Forum has developed to 16 countries. All member countries are trying their best to strengthen the regional cooperation in a hope that all members can get benefit from it. In the regional cooperation the biggest and most successful example is the relieving and rescuing activities of the Solomon Islands. Starting from last year over 10 member countries of the Forum dispatched policemen, army-men, and personnel to help re-establish laws and orders on the Solomon Islands. Now the Islands have already entered into a stage for reforms in terms of economy and administration.

The Prime Minister also dealt with the drought problem in Australia. Though there occurred drought and world economic depression yet it saw a smooth development in Australian economy and the favorable trend will continue. The drought has affected seriously on Australian agriculture, reducing 0.75 percentage points in the Australian GDP growth. And the year of 2003 saw a big rise in some food prices. They are now returning to the normal. The Australian government has already provided AS$ 490 million (1 Australian dollar to 6.3 yuan in Renminbi) to the farmers directly hit by the drought for relief. And towards the fiscal year of 2005 - 2006 the government is as estimated going to spend one billion Australian dollars for the drought relief.

By People's Daily Online