Chinese President Hu Jintao (L) accompanies Philippine President Gloria Macapagal Arroyo in inspecting an honour guard of the Chinese People's Liberation Army outside the Great Hall of the People in Beijing, capital of China, Sept. 1, 2004.

Chinese President Hu Jintao said Wednesday China and the Philippines should always be good neighbors, good friends and good partners.

During his talks with Philippine President Gloria Macapagal Arroyo in the Great Hall of the People here Wednesday afternoon, Hu said the Sino-Philippine relationship has entered a new era of all-around growth.

President Arroyo arrived in Beijing Wednesday afternoon for a three-day state visit to China. She said during the talks that bilateral cooperation has reached a unprecedented level, adding that the people of the two countries share a history of friendly communication over more than 1,000 years.

During the talks, Hu set forth four proposals for the all-around promotion of the good-neighborly partnership of mutual trust between China and the Philippines.

Hu suggested maintaining high-level contact, dialogue and exchange at all levels, strengthening consultation and cooperation between the two governments and their departments and jointly holding a ceremony to mark the 30th anniversary of forging diplomatic ties between the two countries.

He proposed enlarging bilateral economic and trade ties, improving trade commodity structures and maintaining high growth rates. Cooperation in agricultural technology, machinery and seed strains cultivation should be further deepened and cooperation in infrastructure construction and natural resource exploration, expanded, he said.

The Chinese president proposed strengthening exchange and cooperation in cultural, educational and tourism sectors, as well as improving cooperation in security and judicial areas to crack down on cross-border crimes.

He suggested the two countries properly handle specific issues in bilateral ties and be good neighbors, good friends and good partners forever.

Arroyo fully agreed with President Hu's detailed proposals. She said the Philippines is deeply convinced that China, as its friendly neighbor, plays an pivotal role in the development of her country. She noted that China is the first country she has visited since her re-election as the President.

Arroyo said she will ask the relevant departments of the Philippine government to actively implement Hu's proposals.

President Hu Jintao introduces Chinese officials to the visiting Philippine President Gloria Macapagal Arroyo (R) during a welcoming ceremony at the Great Hall of the People in Beijing Wednesday, September 1, 2004.

Arroyo expressed full understanding of the importance of the Taiwan issue to China. She reiterated that the Philippines's continued firm support to the one-China policy.

Hu said he highly appreciated the Philippine government's adherence to the one-China policy and its attention on developing relations with China.

The frequent exchange of visits by Chinese and Philippine leaders has increased mutual trust between the two countries in recent years, and the two sides have made abundant progress in bilateral trade and economic cooperation, Hu said. They have attained rich results in such cooperative areas as agriculture, infrastructure development and development of natural resources.

Bilateral exchanges and cooperation in the fields of culture, tourism and fighting against cross-border crimes have been expanded continuously, he added.

China-Philippines trade hit 9.4 billion US dollars in 2003, surging 78.7 percent year on year, according to Chinese official figures.

Hu said the two countries have also conducted sound coordination and cooperation on international and regional affairs.

Arroyo spoke highly of the mutually beneficial cooperation that the two countries conducted in various areas. She especially mentioned the hybrid rice from China that has helped local farmers in the Philippines double their incomes, playing a vital role in promoting the development of local economy.

Hu said the establishment of the China-ASEAN free trade zone is a strategic decision the two sides made in regard of the overall need of long-term growth of China-ASEAN relations.

Hu said the free trade zone is a win-win arrangement. He expressed the wish that China and ASEAN will join efforts to accelerate the process of negotiations, strive to reach agreement on the earliest possible date and start the construction of the free trade zone on time, thus contributing positively to promoting regional cooperation in Asia.

Arroyo agreed with Hu's view on the China-ASEAN free trade zone.

She expressed the belief that with the joint efforts of the two sides, the relevant negotiations on the issue will continue to make new progress.

After the talks, Hu and Arroyo attended the signing ceremony for five documents on bilateral cooperation, including memorandums of understanding on fishery cooperation and the implementation program of tourism cooperation.