Chinese President Hu Jintao (R) meets with Australian Prime Minister John Winston Howard in Beijing April 18, 2005.Howard is paying a working visit to China from April 18 to 19.

Chinese President Hu Jintao said in Beijing Monday the Chinese government has always attached priority to relations with Australia.

Hu said the Chinese government is ready to join hands with Australia to enhance mutual trust, expand common ground, deepen cooperation and push forward in-depth development of Sino- Australian relations of all-round cooperation.

Hu made the remarks during his meeting with visiting Australian Prime Minister John Howard in the Great Hall of the People in Beijing Monday afternoon.

Howard said the two countries are enjoying healthy growth in political and trade links at present. The two governments have just initiated negotiations on a free trade agreement by signing a historical memorandum of understanding Monday afternoon. At the same time, Australia announced that it will treat China as a full market economy.

Howard said Australia will adopt an active approach to the negotiation on the free trade agreement with China. He said Australia is ready to push forward bilateral trade and economic cooperation.

Howard also reiterated that Australia will continue to stick to the one-China policy and step up coordination and cooperation with China on international affairs.

Hu said China and Australia have witnessed new progress of bilateral relations over the recent years. Cooperation and exchanges between the two countries have borne rich fruits, Hu said.

Hu said the launch of the free trade talks, as well as Australia's recognition of the full market economy status of China, will help expand and deepen trade and economic links between the two countries.

Hu expressed the wish that the two countries push forward the free trade process step by step and in line with the principles of mutual understanding and reconciliation, flexibility and practicality, mutual benefits and win-win interactions.

He said the two countries should open up the broad prospect of all-round cooperation.

The president praised the Australian government for its adherence to the one-China policy and its stance against Taiwanese independence. He expressed the hope that Australia would continue to support the cause of reunification of China.

Howard arrived here Monday afternoon for a working visit to China. His current visit will focus on the full range of two country's relations including trade, economic issues and other important issues, especially the next step down the road towards China-Australia free trade agreement.

Besides Beijing, he will also visit China's southernmost island province of Hainan and attend the 2005 Boao Forum for Asia.

This is Howard's fifth visit to China as Prime Minister. He has visited China in 1997, 2001, 2002 and 2003.