On 2 September Foreign Ministry Spokesperson Kong Quan held a regular press conference.

Kong: Good afternoon. Today is the first press conference after the summer break. From the last press conference on 17 July, we have 26 new correspondents from 7 countries and I see some of them today. I'd like to warmly welcome them here.

During the summer break the Information Department has organized 6 briefings and large interviews for you and assisted 10 organizations including provincial governments in organizing 10 briefings, with over 300 person/time to participate. So you may not have enjoyed very much the not so hot summer in Beijing and you were even busier with the six-party talks.

Today we also have 20 correspondents from 19 news agencies from Nepal and Sri Lanka for interviews in China. I would like to extend my warmest welcome on behalf of the Information Department of the Foreign Ministry.

Now two news announcements:

At the invitation of President Hu Jintao, President Johannes Rau of the Federal Republic of Germany will pay a state visit to China from September 10th to 17th.

At the invitation of Foreign Minister Li Zhaoxing, Hon.Phil Goff, Minister of Foreign Affairs and Trade of New Zealand, will pay an official visit to China from September 12th to 13th.

Now the floor is open.

Q: The DPRK delegation issued a statement in the Beijing airport on 30 August, mainly saying that it did not hope to continue the six-party talks and it did not hold any anticipation. This is a fact widely reported by many media. What is your comment?

A: The nuclear question of the Korean peninsula has its complicated background and origin and the DPRK and the US have long been in a hostile state. The most important significance of the six-party talks this time is that the six parties sit together for the first time to have consultations on relevant question. Secondly various parties were able to know each other's concerns through the talks which was conducive to laying a foundation for reducing difference and expanding consensus in the future. The Chinese side is fully aware of the complexity of the question and the difficulties and twists in between. But it is believed that with the consensus among the six parties, the dialog process will continue to reduce mutual doubts with the enhancement of mutual understanding and further develop and expand the already existing consensus so as to lead to the final solution of the question.

Q: Vice Foreign Minister Wang Yi clearly indicated after the talks that various parties agreed not to take extreme actions to aggravate the question. The delegate of the DPRK said that it was not necessary to continue the talks while Wang Yi was making that remarks. Is this inconsistent with the remarks made by Wang Yi? Does this mean that the six-party talks will not continue as is hoped by Wang Yi?

A: The nuclear question of the Korean peninsula is very complicated and various parties have their own considerations, concerns and suggestions. Various parties have reached some consensus and differences also are shown. We hope that various parties can continue to keep contact and close communications, further study earnestly the positions expounded by various parties in the talks and make preparations for the next talks. Various parties all agree not to take moves that may complicate and aggravate the situation and we hope that they can adhere to such consensus.

Q: Vice Foreign Minister Wang Yi said while being interviewed in Manila that the reason that there is no joint statement or communiqué is the hostile policy taken by the US against the DPRK. Does the Foreign Ministry share the view?

A: I have not followed him to Manila nor have I seen his remarks. Please allow me raise this question to him after he returns. In fact various parties have all expounded their views and positions through the talks and reached some consensus. Vice Foreign Minister Wang Yi summarized the important consensus at the press conference last Friday afternoon, including of course the positive factors shown by the DPRK and the US.  To issue a kind of joint document is not the only form to summarize the talks this time. It is important that various parties can continue the dialog process through joint efforts to bring about the peaceful settlement of the nuclear question of the Korean peninsula ultimately.

Q: Can I draw the conclusion that China is disappointed with the comment made by the DPRK towards the six-party talks last Saturday? Is it that the DPRK has pulled cold water while the atmosphere of the talks reached climax? Another question, Japan said that it would compensate the victims of the gas leak in Qiqihar. What is your comment?

A: China has no reason at all to feel disappointed. As an Asian country, permanent member of the UN Security Council and a big developing country, China hopes to make its own efforts for peace and stability in Asia and the world. Since the nuclear question propped up once again, the Chinese side has always made its own consistent efforts, which have been fully affirmed by the other five parties and the international community. Of course the six-party talks also enabled us to see further the complexity and difficulty of the question. It is because of these that the Chinese side urged various parties to make further efforts, enhance communication, keep contact, bridge gap and find ways to solve the question peacefully. The Chinese side is therefore not disappointed and it will make joint efforts with the international community and the other parties included so as to make its own contributions to the peaceful settlement of the nuclear question of the Korean peninsula.

As to the poisoning incident in Qiqihar, the Chinese and the Japanese sides have kept contact and consultation on this. We urge the Japanese side to handle it properly and implement as soon as possible.

Q: The US Treasury Secretary John Snow arrived in China today for a visit. Many countries including the US and Japan urged China to adjust the RMB exchange rate. What is your comment? I phoned the Ministry of Finance and they asked me to refer this question to you. Thanks.

A: Please tell first who suggested you to do so? (laughter)

There are different opinions internationally towards the RMB exchange rate. M any countries stand for a stable exchange rate. Spokesperson of the Ministry of Foreign Affairs is not the authoritative person to answer this question but I can introduce to you relevant remarks made by Premier Wen Jiabao. He met with the former US Treasury Secretary Robin and IMF Managing Director Horst Kohler and will meet with Mr. Snow tomorrow. Now there has been some discussion saying that the RMB exchange rate is fixed but this in fact is not complete. Since the exchange rates converged in 1994, China has adopted a single and administrated floating foreign exchange system which is based on demand and supply of the market. This system is not a fixed one. Of course the forming system of the RMB exchange rate will improve with the constant development of the country and it is certain that a stable RMB helps China's, Asian and the world economic development. You may still remember that there were many rumors about the RMB exchange rate back in the Asian financial crisis in 1997 and China, as a responsible country, did not depreciate its RMB at the time, which helped the Asian countries to get out of the shadow of the crisis and take on the road of economic recovery. Generally speaking, China will continue to keep its RMB exchange rate stable. 

Q: Taiwan began to add "Taiwan" on the cover of its so-called passport to differentiate people from Taiwan and the PRC. What is the comment from the Chinese mainland?

A: The explanation is unacceptable and the move is what we are resolutely opposed to. To add the "Taiwan" on its so-called passport by the Taiwan authorities is a manifestation of its splittist activities aimed at progressive independence of  "Taiwan" and another gross move to undermine cross-strait relations. We are resolutely opposed to it.

Q: France and Libya have solved their disputes through consultation. Do you think it will help the motion put forward by the UK to the UN on a halt of sanctions against Libya? China has decided to reduce its army and will it have any impact on its foreign policy?

A: The people of Libya have suffered a lot from the sanctions and we hope that the relevant question can be solved properly as soon as possible and that the sanctions can be abolished as soon as possible.

Chairman Jiang Zemin of the Central Military Commission announced yesterday that the People's Liberation Army would be reduced by 200,000 by 2005 and he summarized comprehensively the important significance of the move in his speech. I have nothing to add.

Q: As you have said the nuclear question of the Korean peninsula is very complicated. It is recently reported that the question will be handed to the UN Security Council. What is your comment?

A: The six-party talks took an important step forward in the peaceful settlement of the question. Various parties all hope that the dialog process can continue, solve the concerns of various parties and solve the question peacefully. When the talks have made progress and various parties have reached some consensus, we think that the intervention by the UN Security Council should be prudent.

Q: Is there any progress in the talks between the Central Government and Dalai Lama?

A: The door of contact between the Central Government and Dalai Lama is open. The key is that he, not only in words but also in deeds, truly gives up the proposal of "Tibet's Independence", stops all the activities aimed at splitting the motherland, openly acknowledges that Tibet is an integral part of China, that Taiwan is a province of China and that the Government of the People's Republic of China is the sole legal government representing all China. The contact channel between the two sides is unimpeded.

Q: You said that you are not disappointed by the statement made by the DPRK after the talks. But later the DPRK also said that it had no choice but to enhance its nuclear capability. Under such circumstance, can you tell us whether the next round of talks will be held in Beijing and when we can know the specific time?

A: In the six-party talks, various parties all made clear their positions. Frankly speaking there are both many important consensus and serious differences, especially between the DPRK and the US. The tension between the two sides has lasted for over 50 years, with policy factor in between including the US policy towards the DPRK. After the talks, all parties need some time to study seriously the positions of the others and consider the principles of the next phase. We hope that all parties can, proceeding from safeguarding peace and stability in Asia and the world, continue to make efforts towards the direction of solving the question peacefully through dialog and diplomacy. I can not answer precisely when the next round of talks will be held. It needs to be discussed by the parties. As to whether the next round of talks will be held in Beijing, the Chinese side is flexible and open on this. So long as the proposals are conducive to the peaceful settlement of the question, we will give them positive consideration since our ultimate goal is to solve the question peacefully, ensure denuclearization on the peninsula, and safeguard peace and stability on the peninsula, Asia and the world at large.

Q: Vice Foreign Minister Wang Yi strongly hinted in Manila that the US policy towards the DPRK was the main obstacle to the peaceful settlement of the question. Can you further explain which US policies need to be changed?

A: The antagonism and disputes between the DPRK and the US are serious. The DPRK said that it was under threat and the negative US policy created serious obstacles to it. This all shows the lack of mutual trust between them. We therefore hope that the two sides can further expound their concerns and considerations through further talks, make clear their hopes and demands, keep contact and communication and narrow difference through talks so as to lay a foundation for the peaceful settlement of the question. As to the detailed questions like how the US threatens the DPRK, these are all questions that need to be further discussed in the next round of talks and especially between the US and the DPRK.

If there is no further question, thanks for coming to the first press conference after the summer break.