Dushanbe: China and Tajikistan, its central Asian neighbour, sealed a series of deals on Friday to further develop bilateral ties.

Visiting Premier Wen Jiabao and his Tajikistan counterpart Akil Akilov signed a joint declaration in the State Guest House in the capital, marking the new step in bilateral co-operation.

Medical hygiene and technology, cracking down on drug trafficking, and television broadcasting are the major areas of the agreements.

Beijing also agreed to offer US$10 million of preferential loans to support Tajikistan's development.

Premier Wen arrived here late Thursday night to attend the annual meetings for prime ministers of the Shanghai Co-operation Organization (SCO) as well as to start the first-ever official visit by a Chinese premier to Dushanbe since the establishment of the diplomatic relation 14 years ago.

Wen said the two countries have maintained healthy and smooth ties. Border issues have been completely resolved and the two have supported each other on major issues and co-operate with each other on international and regional affairs.

Wen's tour to the country is mainly focused on economic concerns. He is scheduled to attend the opening ceremony of an electricity transmission system project on Saturday morning following talks with Tajikistan President Emomali Rakhmonov.

Tajikistan is the biggest beneficiary of China's US$900 million of preferential export buyer's credits to SCO member states.

Observers said that though the total bilateral trade volume is not yet significant, its rapid growth rate is impressive and Wen's visit will reinforce good relations and economic ties between the two countries.

Two-way bilateral trade reached US$158 million last year, up 130 per cent from the previous year.

Wen will leave Dushanbe for home on Saturday noon and arrive in Beijing the same night, concluding his eight-day four-nation trip.

Source: China Daily