Before visiting the Russian Federation and holding the 9th Regular Meeting of Prime Ministers of China and Russia jointly with Russian Prime Minister Mikhail Fradkov, Premier Wen Jiabao of the State Council received an interview by Executive Deputy Director of Interfax Abdulin and Deputy Director of ITAR-TASS Kuchic at Zhongnanhai on September 12, 2004. The main content of the interview is as follows:

Wen Jiabao: I'm pleased to receive an interview by two famous news agencies on the eve of my upcoming visit to your great country. I would like to express my greetings via the two news agencies to the great Russian people. At the same time, I would also like to take this opportunity to express strong condemnations against the violent terrorist events and hostage-taking event that took place successively in Russia recently and extend profound condolences over the innocent victims and sincere solicitude to their families and the Russian people.

The Chinese government has indicated time and again that it resolutely supports the firm stance and the uttermost efforts of the Russian government and people to safeguard national unity and territorial integrity and to protect the security of people's lives. There is a Russian saying that goes like this, "one person's pain, if shared by two, can be halved ". In China, there is also an old saying, "a friend in need is a friend indeed". When the Russian people are encountering difficulties, the Chinese government and people stand ready to provide assistance within their available resources. We believe that under the leadership of President Putin and the Russian government, the Russian people will surely be able to overcome the current difficulties, maintain national stability and security and realize economic development and social progress.

Interfax: first of all, we would like to thank China for offering support at such a hard moment for Russia.

How do you comment the status quo of Russia-China economic and trade cooperation? Bilateral trade volume in 2004 will reach $ 20 billion and some experts predict it may amount to US$ 100 billion. Do you think this goal is achievable? Will Russia's entry into the WTO be conducive to expanding Russia-China economic and trade relations? How is the negotiation on Russia-China market access going? When do you think it will be concluded? Will the anti-dumping duties China imposes on part of steel products hinder the development of the bilateral trade between the two countries?

Wen Jiabao: the situation of China-Russia trade can be summarized with the following three features: rapid development, broad areas and huge potentials. Rapid development is a remarkable feature of China-Russia economic and trade cooperation. Over the past five years, bilateral trade volume has increased at an average rate of 20% per year and by the end of last year, it had come to US$ 15.7 billion. This year, it is expected to exceed US$ 20 billion, which can realize in advance the goal leaders of the two countries anticipate to be achieved by 2005. I think by 2010, it is beyond question that the bilateral trade volume will reach US$ 60 billion to US$ 80 billion, if it continues developing at such a speed. After another period of time, it will be likely to achieve the goal of US$ 100 billion. Broad areas mean that China and Russia develop not only trade in commodities, but also investment cooperation; promote not only trade in goods, but also service trade including finance and tourism; enhance not only general industrial cooperation, but also cooperation in the high-tech area. Huge potentials mean that both China and Russia are big countries with rapid development. Russia boasts abundant resources, high levels of science and technology, advantages in high quality people and a relatively solid foundation of industrial technology. China's economy is in a stage featured by rapid but steady development. With the reform and opening-up continuously deepened, China boasts vast markets and rich human resources, as well as material and technological foundations formed over the past 20 years of reform and opening-up. Therefore, bilateral economic and trade cooperation between the two countries enjoys a solid foundation.

The Chinese government persistently supports Russia to accede to the WTO. I can explicitly say that with the efforts by both sides, the negotiation of bilateral market access on Russia's accession to the WTO is coming close to an end. During this visit to Russia, I will conclude the negotiation on Russia's entry into the WTO with the Russian prime minister and prepare for the final signing of the agreement by the two sides. China supports Russia to enter into the WTO, because our two countries enjoy strategic cooperative partnership. Russia's accession to the WTO is in the fundamental interests of both countries. It is from this perspective that China has indicated so early that it will become one of the first countries that sign agreements with Russia and give a nod to Russia's entry into the WTO. I believe that China-Russia economic and trade ties will enjoy further development within the WTO framework, after Russia's accession to the WTO.

In the process of China-Russia economic and trade cooperation, it is unavoidable for the two sides to meet with some problems. I believe that the two sides will address the emerging problems through mutual consultation, while complying with the principle of equality and mutual benefit. So long as the two sides pay attention to the interests of the other side, it is not difficult to resolve those problems. I hope to see the establishment of a sound economic and trade order and a mature consultation mechanism to maintain the healthy development of the bilateral trade. As for the issue of so-called anti-dumping duties against steel produced in Russia that you just mentioned, related departments of the Chinese government will earnestly consider and properly handle this issue according to the changes on international and domestic markets.

Interfax: in the second half of the last century, China established the northeastern industrial base with the support and help from the former Soviet Union. Through what specific approaches and ways do you think Russia can participate in the grand program of rejuvenating the old industrial base?

Wen Jiabao: after the founding of the People's Republic of China, the government of the former Soviet Union and its people offered help to China's economic construction. We will never forget this piece of history. In the past 20 years, in the process of the rapid development of China's economy, there remains a gap between the development of the northeastern region and that of the southeastern coastal region. However, the northeastern region is still an important old industrial base of China. It enjoys abundant natural resources and its commodity grains output accounts for one third of the national total, petroleum two fifths, timber one half, and machinery equipment one third to one fourth. It has a considerable assets stockpile, high levels of science and technology and advantages in high quality people. It also boasts well-established infrastructure. Therefore, the northeastern region will develop very soon through the readjustment of the structure, the deepening of the reform and the transformation of the way of economic growth

The northeastern region is very much linked to Russia in economy and people of this region hold profound feelings for the Russian people. We welcome the Russian business community to take part in the rejuvenation of the old industrial base in the northeastern region of China and such cooperation can be conducted in the following aspects.

First, Russia can provide technologies, high quality people and services. Second, Russian businesses are welcomed to invest in the northeastern region and participate in the reorganization, transformation and reform of enterprises in the region through various means. Third, Russian businesses can take part in the infrastructure construction of the northeastern region including communications, roads and electric power. The well-established infrastructure is not only conducive to the development of the northeastern region per se, but also conducive to cooperation between this region and Russia. Fourth, the two sides should jointly tap resources.

Interfax: There are broad prospects for energy cooperation between our two countries. How important will Angarsk-Daqing oil pipeline remain to China after China-Kazakhstan oil pipeline is constructed? Will railway transportation become an alternative to replace this pipeline? Is China still interested in acquiring Russian oil company shares and taking part in developing Russian oil fields? Is China planning on public tendering to establish new nuclear power stations, and where to build them? Is it possible for Russian companies to have an opportunity to participate in your international tendering?

Wen Jiabao: This is an important issue that I am going to discuss with the Russian leaders in this visit. It also holds attention of the whole world. I am of the opinion that cooperation on oil and natural gas between the two countries is in the fundamental interests of them. With regard to the strengthening of oil and natural gas cooperation, and on building oil pipeline from Russia to China in particular, consensus has been reached between leaders of the two countries on a number of occasions and preparations have been made. We understand that Russia encountered some difficulties and problems in selecting from the different pipeline alternatives. However, we are confident that no matter how the projects are designed, the Russian government and enterprises will give priority to building the pipeline to China, because China is the most long-lasting and most stable market for Russian oil and gas. Before the pipelines are built, we are ready to strengthen energy cooperation between the two countries in various ways, for example, to expand oil export by railway. By 2006, Russian oil export to China will reach 15 million metric tons. Meanwhile, Chinese businesses would like to cooperate with Russian businesses through multiple ways on the prospecting, exploitation and development of oil. As to the construction of the China-Kazakhstan oil pipeline that you mentioned, it will not have any impact on China-Russia cooperation in oil and natural gas. You can inform the Russian people through your media that we are confident in this matter.

Nuclear power station construction is another important area of cooperation between China and Russia. China will adopt the policy of actively developing nuclear power. The current total installed capacity of nuclear power in China is only 6.7 million kilowatts. We anticipate that it will reach 8.7 million kilowatts by 2005, accounting for only 2% of the total installed capacity of China's power. Russia has some foundation and rich experience in developing nuclear power. China has decided to establish nuclear power stations in places including Sanmen, Zhejiang Province and to import advanced overseas technology and equipment through public tendering. Effective collaboration has been conducted between China and Russia in Tianwan Nuclear Power Station. Therefore we hope to ensure the quality of the nuclear power station through our common efforts, so as to lay a good foundation for further cooperation between the two countries.

ITAR-Tass: Would you please make some comments on the current cooperation between China and Russia in political, economic, cultural and international arenas?

Wen Jiabao: The current China-Russia relationship is the best in history. The reasons why I say so are: Firstly, both countries have identified a long-perspective goal in developing the bilateral relations, i.e. to develop a "strategic cooperative partnership". In evaluating and handling the relations between China and Russia, an overall, long-term and strategic perspective should be taken. Secondly, the two countries have signed the Treaty on Good-neighborliness, Friendship and Co-operation between China and Russia, solidifying the friendly relationship between the two countries in legal form. Thirdly, the two countries have set up a mature mechanism on meetings between leaders of the two countries, which is helpful for us to enhance mutual understanding and expand consensus. Fourthly, the two countries have strengthened coordination and cooperated closely on major international and regional issues in organizations such as the United Nations (UN) and the Shanghai Cooperation Organization (SCO), contributing to world peace and development with concerted efforts.

Therefore, my general view is that China-Russia relations have entered a new phase featured by overall development. The major hallmarks for the phase are the mutual political trust, economic cooperation and cultural exchanges. Now that I have talked about both the political and economic aspects, I would like to emphasize culture. Both our countries boast time-honored culture, traditions and civilization, each culture profoundly influencing the other. Several generations of China are familiar not only with Pushkin and his famous "Evgenii Onegin" but also with Lev Tolstoy and his masterpiece "War and Peace", as well as a number of Russian litterateurs.

The Russian people are also much acquainted with the Chinese culture. The poetry and works written by China's Confucius, Mencius and Lao Tze and their philosophy have had profound influence on Russian philosophy and literature. Many accomplished scientists and artists in China and Russia have made significant contribution to world civilization and scientific development. Strengthening cultural exchanges between the two countries is essentially strengthening the foundation for their friendship and cooperation. I am optimistic about the development of the political, economic and cultural relations between the two countries. As the Russian proverb goes, "God make us neighbors", we are each other's largest neighboring country, sharing 4300 kilometers' boundaries. We shall be friends forever, and never be foes.

This year marks the 55th anniversary of the establishment of China-Russia diplomatic ties. It is a memorable year. The heads of state of the two countries specially name this year as the Year of Youth Friendship between China and Russia, which is a farsighted proposal. Youths are not only the future of each country's development, but also the future of enhanced friendship between us. We became very familiar with Russia when we were young. Many young second-world-war heroes of the former Soviet Union, such as Ostrovsky and his "How the Steel Was Tempered" are familiar to several generations of China.

ITAR-Tass: You mentioned just now that China-Russia relations are in a brand-new phase of development. Which areas do you deem the most successful or most promising in the business communities of the two countries?

Wen Jiabao: This question provokes my thought. The business cooperation between the two countries must proceed from each other's advantages under the principle of equality and mutual benefit. First, resource tapping, energy utilization in particular. Second, scientific and technological cooperation, in particular hi-tech and its putting into use. Third, equipment manufacturing. Fourth, infrastructure construction. I think all those areas are important.

Russia is a country with powerful technological strength. We pay high attention to the scientific and technological development in Russia. We will also have an arrangement in my short visit, i.e. talking with the scientists in the Russian Academy of Sciences. Russia enjoys a cornucopia of major achievements and prominent talents in aeronautics and space, new materials and biotechnology. Great improvements in space, IT and biotechnology have also been made in the People's Republic of China, particularly since it began to reform and open to the outside world. We can strengthen our cooperation.

Russia has a good foundation in equipment manufacturing as well. In particular, it has advanced technology and equipment in nuclear utilization, electricity generation and heavy machinery manufacturing, while China develops fast in telecommunications, electronics, textile, shipbuilding, etc. We can strengthen cooperation in machinery and equipment manufacturing. I think such cooperation will boost our mutual development in these areas.

ITAR-Tass: Will you touch upon those issues when you meet with Russian Prime Minister Fradkov? What proposals for cooperation will China bring forward?

Wen Jiabao: I am to visit Russia and attend the Ninth Regular Meeting between Chinese and Russian Prime Ministers. I will also meet President Putin. We will exchange opinions on further developing the friendly and cooperative relationship between China and Russia and on regional and international issues of common concern. My visit will involve the following five aspects, or achieve results in the following five aspects. First, to review the cooperation between the two countries in each field during the past year, thrash out the existent problems, and define the goals and tasks for future development of the relations between the two countries. Second, to conclude the negotiation on Russia's accession to the WTO. Your Prime Minister and I will announce that we have finished the task and have made all the preparations to finally sign the agreement between the two countries. Third, to formulate a plan for the friendly cooperation between the two countries and incorporate all specific cooperative activities into it, which will be implemented seriously. Fourth, we will hold consultations on the cooperation in energy, especially in oil and natural gas. I believe progress will be made in this aspect. Fifth, both sides will exchange ideas on regional and international issues of common concern. In particular we should strengthen collaboration and coordination in combating the "three forces", i.e. terrorism, separatism and extremism. Besides, I will take this opportunity to engage with personages from all walks of life of Russia, to convey Chinese people's greetings and good wishes to the Russian people, and the Chinese people's sincere condolences on the disasters incurred by terrorism.

Thank you!