At the Fifth 10+3 and 10+1 Summits held in Brunei Darussalam in November 2001, Chinese Premier Zhu Rongji put forward a number of initiatives on the enhancement of cooperation, which were warmly received by participating leaders.Since the summits, Chinahas been working vigorously for the implementation of all those initiatives.

I.undefinedFinancial Cooperation

Chinahas been actively implementing the "Chiang Mai Initiative".Chinasigned bilateral currency swap agreements with Thailand, Japan, ROK and Malaysiarespectively in December 2001, March, June and October 2002, and has started to contact some other countries on such agreements.From 2001, the Chinese Government has run four training courses for 10+3 financial and central bank officials in Beijingand Shanghaiwith good result and will continue to host more such training courses.In October this year, the ASEAN+3 High-Level Seminar on Management of Short-term Capital Flows and Capital Accounts Liberalization was successfully held in Beijing.

II.undefinedEconomic Cooperation and Trade

Following the consensus reached last year between the leaders of Chinaand ASEAN on the establishment of a China-ASEAN Free Trade Area in ten years, another consensus was basically reached on the "Framework Agreement on China-ASEAN Comprehensive Economic Cooperation (draft)" at the first China-ASEAN Economic Ministers' Meeting held in Brunei Darussalam in September.It was agreed that the document would be submitted to the leaders of both sides for signature during the 10+1 Summitto be held this November. The China-ASEAN Trade Negotiation Committee has, for that purpose, held six rounds of meetings for consultations on the draft Framework Agreement.

Moreover, during the last 10+1 Summit, Premier Zhu stated that Chinawould offer special preferential tariff treatments to Laos, Cambodiaand Myanmar.At present, Chinaand the countries concerned are preparing for the exchange of notes on this subject.

In November last year, the inaugural meeting of China-ASEAN Business Council was held in Indonesia.Its second meeting is scheduled to be held in Kunming, YunnanProvince of Chinathis December.As a bilingual website for the council, China-ASEAN Business Net has been launched.

III.undefinedAgricultural Cooperation

At last year's 10+1 Summit, key areas, agriculture included, were identified for China-ASEAN cooperation at the beginning of the new century.To boost cooperation in the area of agriculture, during the 10+3 Forest and Agricultural Ministers' Meeting this October, the two sides initiated the MOU on Mid and Long-term Agricultural Cooperation, and this MOU will be officially signed before the 10+1 Summit in Cambodia this November.In June 2002, Chinaalso held the "Forum on Agricultural Technology and Cooperation in East Asia" attended by about 100 representatives from ASEAN countries, China, Japan, ROK and UNFAO.

IV.undefinedIT Cooperation

Premier Zhu has promised that Chinawill continue to support and participate in the development of "e-ASEAN".In the years to come, Chinawill redouble its efforts in IT training for ASEAN personnel and take an active part in IT infrastructure development in ASEAN countries.In April 2001, Chinese Ministry of Information Industry held in Shenzhen the First China-ASEAN Information and Communication Technology Seminar, and the second one was held in Indonesiain October this year.Chinahas submitted to the ASEAN side a draft MOU of mid and long-term IT cooperation between Chinaand ASEAN. Hopefully it will be signed next year. Chinaplans to hold five training courses in the following months for 100 IT professionals from ASEAN, one of which, ASEAN Telecom Networks Management Workshop, took place in Beijingthis October.

V.undefinedCooperation in the Development of MekongRiver Basin

The Chinese Government attaches importance and is committed to the cooperation in the MekongRiver Basindevelopment.At the Summit, Premier Zhu undertook to increase input in this area.

As for the navigation cooperation on Lanchang-MekongRiveramong China, Laos, Myanmarand Thailand, Premier Zhu committed US$ five million to the navigation channels improvement project on the UpperMekongRiver.The first phase of this project was completed last April.

Regarding the Kunming-Bangkok highway, the Chinese side has undertaken to build one third of the Laotian section in the form of assistance.At present, China, Laos, Thailandand Asian Development Bank (ADB) have reached preliminary agreement at the working level on technical standard, construction process, financing arrangements and other related matters.It has been agreed that a 2nd/3rd-class highway in conformity with the ASEAN standard will be constructed.China, Thailandand ADB will share the total investment equally.The Chinese side will provide US$ 30 million of assistance to Laos, including an interest-free loan and a grant.

As for the Kunming-Singapore railway, Premier Zhu has pledged to start, as soon as possible, building or renovating the relevant sections in the Chinese territory.At present, the ASEAN side has decided to go for the east-line. The Chinese side will build or renovate the Kunming-Heko section in its territory.

From May 29 to June 5, the First China-ASEAN Training Project for Vessel Masters, Chief Engineers and Safety Administrative Personnel on the Langcang-MekongRiverwas successfully held in China.

VI.undefinedHuman Resources Development

The year 2001 was the first year after China's announcement that it would inject another US$ five million to the China-ASEAN Cooperation Fund.Chinaproposed 14 cooperation projects, 13 of which were approved and already carried out. The ASEAN side put forward 2 projects, both of which are under implementation.

In 2002, 13 cooperation projects have been approved by both sides, namely Training Course on Road & Traffic Management and Applicable Technology for ASEAN countries, Project of Establishing an ASEAN AIDS Laboratory Network, China-ASEAN Seminar on Mass Media Cooperation, China-ASEAN Training Course on Earthquake Prediction Techniques, Agricultural Biotechnology Training Course for ASEAN Countries, Training Program on Information Communication Management & Technology for High/Middle-level Officials and Technicians of ASEAN Countries (altogether 5 training courses), China-ASEAN Exchange of Delegations (the first phase, Workshop on Understanding Modern China), ASEAN-China Workshop on Marine Science and Technology and the 2ndChina-ASEAN Information and Communication Technology Seminar. Till now, five of these projects have been completed. The rest will have been concluded by the end of this year and the beginning of next year.

VII.Scientific and Technological Cooperation

Chinaalways attaches importance to and supports enhanced cooperation among East Asian countries in science and technology.When the China-ASEAN Joint Committee on Science and Technology met for its second session in Boao, Hainanin October 2001, the two sides put forward a number of proposals on cooperation programs.The China Seismological Bureau organized a China-ASEAN Seminar on Seismology in October 2001 and a China Applicable Technology Exhibition was put on in Vietnamand Cambodiain December the same year.China-ASEAN Training Course on Earthquake Prediction Techniques will be given in Chinathis December.

VIII.Cooperation in the Field of Non-traditional Security Issues

At the last Summit, Premier Zhu Rongji proposed that 10+3 countries gradually expand their political and security cooperation to non-traditional security issues while continuing to focus on economic cooperation. Chinahas suggested that a 10+3 Ministerial Mechanism on Combating Transnational Crimes be established to enhance 10+3 cooperation in this field.

As for drug control, China has closely cooperated with ASEAN countries, jointly launched a drug control cooperation mechanism with Myanmar, Thailand, Vietnam, Cambodia, Laos and the UNDCP and signed the "Plan of Action of ASEAN and China Cooperative Operations in Response to Dangerous Drug" with ASEAN. China, Laos, Myanmarand Thailandalso convened a four-state ministerial conference on drug control.

In May 2002, Chinasubmitted a "Position Paper on Enhancement of Cooperation in the Field of Non-Traditional Security Issues" at the ARF Senior Officials Meeting.At the 10+3 Foreign Ministers' Meeting in July this year, Chinaproposed a 10+3 ministerial meeting on combating transnational crimes, which received unanimous support.This meeting will be conducted back to back with the ASEAN Ministerial Meeting on Transnational Crimes.

With a view to further developing comprehensive cooperation between Chinaand ASEAN, the Chinese side made a proposal to the ASEAN side in October 2002 that a Joint Declaration of China and ASEAN on Cooperation in the Field of Non-Traditional Security Issues be issued at this year's Summit. At present, the two sides have basically reached consensus on this issue.

IX.undefinedTourism Cooperation

At present, all of the ten ASEAN countries have become official destinations for Chinese tourists.In 2001, the number of tourist visits from ASEAN countries to Chinatotaled 1.984 million. Chinahas signed governmental tourism cooperation agreements or MOU for tourism cooperation with ASEAN countries including Thailand, Singapore, the Philippines, Vietnamand Myanmar.In January 2002, the First 10+3 Tourism Ministers' Meeting was convened in Yogyakarta, Indonesia, marking the formal launching of tourism cooperation within the 10+3 framework.

X.Transportation Cooperation

At the last Summit , Premier Zhu called for the convocation of a China-ASEAN transportation ministers' meeting. In September this year, the First China-ASEAN Transportation Ministers' Meeting was held in Indonesia on the basis of two China-ASEAN Senior Transportation Officials Meetings in the same country in May and September this year.