Kong Quan: Good afternoon. First, let me extend my welcome to the delegation of senior diplomats from the Foreign Ministry of Laos to our Press Conference. I wish you a smooth journey in China.

For the sake of our cameramen, please turn your mobile's sound off. Thank you for your cooperation. Now the floor is open.

Q: What message will NPC Chairman Wu Bangguo bring to the DPRK during his visit over the weekend?

A: You seem to be announcing a visit to the DPRK by Chairman Wu Bangguo on my behalf. (Laughter)In fact, Chinaand the DPRK have the tradition and mechanism of exchanges of high-level visits. The two sides have had talks with each other on the matter. If there are any definite news, I will let you know as soon as possible.

Q: The United Statesvetoed the UN draft resolution urging Israelto stop expelling Arafat. What is your comment?

A: The Chinese delegation has actively participated in the deliberations on the resolution. We voted for the resolution. We are resolutely opposed to Israel's decision to expel Chairman Arafat or to pose a threat to his own safety through other means.The situation in the Middle Eastis highly complicated. We condemn any suicide attack on civilians and call for its immediate end. At the same time, we condemn the "targeted cleansing" policy by the Israeli side towards the occupied territories. If the strange circle of trading violence with violence persists, the Middle Eastpeace process cannot move forward. We call on both Israeland Palestineto go along with the international peace-making efforts. Trading violence with violence should be stopped. One should return to the path of a political settlement as soon as possible.

Q: People are watching closely China's upcoming manned space mission. What is China's attitude towards cooperation with the foreign countries in the outer space? Has Chinaconducted any such cooperation with other countries? Are there any plans in the future?

A: I hope that our manned space programme could be realized as soon as possible. Chinahas actively stood for international cooperation in the peaceful use of the outer space. As far as I know, Chinahas explored upon or conducted such cooperation with some countries, including Russiaand the EU. Chinawill continue to carry out cooperation with other countries and international organizations in this area.

Q: You mentioned about China's wide-ranging cooperation with Russiaand the EU. Has Chinadiscussed about the issue with the United States?

A: Chinahas been positive in international cooperation on the peaceful use of the outer space. I could make some inquiries about the details.

Q: Recently, China's trade policy came under attack from many people in the United States. They criticized Chinafor failing to earnestly honour its WTO commitments. Does Chinabelieve that such criticism is out of political motives, such as the U.S.presidential election? Do you think it is fair? Will it affect Sino-U.S. relations?

A: At the last Press Conference, a correspondent raised this question. It was on the same day of the speech by the U.S. Secretary of Commerce. It was impossible for me to get the detail of the speech. Since you have raised this question again today, I will give you a more detailed answer. The relevant report actually covers three questions. First, a general comment on Sino-U.S. trade relations. Second, China's implementation of its commitment to the WTO. Third, China's protection of the IPR.

First, Sino-U.S. economic cooperation and trade is an important component of the bilateral relations. The United Statesis China's second largest trade partner. Chinais America's fourth largest trade partner. In recent years, Sino-U.S. trade has grown rapidly. U.S.direct investment in Chinahas been expanding. Sino-U.S. economic cooperation and trade have extended to new areas. China's vase market has provided huge business opportunities to U.S.businessmen. According to incomplete statistics, U.S.trade with Chinahas created hundreds of thousands of jobs. It has played an important role in ensuring the long-term stability of price and inflation in the United States. It also contributes to the healthy economic development and the improvement of people's living standard. Thus, Sino-U.S. economic relations and trade are mutually beneficial. After China's membership in the WTO, China's market will be further expanded. Sino-U.S. cooperation in the economic and trade field will also expand and deepen without any doubt. We hold that the steady and healthy development of bilateral ties serves the long-term interest of the two countries. One should properly handle questions and frictions in the bilateral trade and commerce, so as to promote the healthy development of the trade. The two sides should remove interference from non-economic factors through talks on the basis of mutual trust and understanding. The questions in the bilateral trade should be dealt with in a positive and practical attitude through equal consultations, so as to ensure the healthy and stable development of bilateral ties.

Some people blame Chinafor failing to fully honour its commitment to the WTO. Such allegations are totally unacceptable. In fact, after becoming a member of the WTO, Chinahas earnestly honoured its commitments and made tremendous efforts in the endeavor. Namely, we have, as promised, reduced the tariff level from 15.3% in 2001 to 12% at the moment. At the same time, we have honoured our promises by removing some non-tariff measures and issuing tariff quotas. The openness of the service and commodity markets has been pushed ahead step-by-step according to plan. More importantly, we clarified and modified the relevant laws and regulations. Now they are already, or basically in line with China's commitment to the WTO. In terms of transparency, we have done a lot by establishing reporting and consultative institutions. Now we are accepting examinations upon China's performances during the transitional period by the various institutions of the WTO. From the initial result of the examination, the WTO speaks positively and affirmatively of China. As a big and responsible nation, Chinais steadfast in honouring its commitments. On the other hand, we are confronted with many questions and unexpected difficulties. However, these could not undermine our determination. One fundamental reason is that membership of the WTO serves our objective of reform and opening-up, as mentioned in the decade-long talks on the entry into the WTO. It is also a strategic decision by the Chinese Government facing the globalization trend. It is in our fundamental and long-term interest. We are fully confident of doing our own things well and striking a balance of rights and obligations within the WTO framework.

Some reports also blamed Chinaof its protection of the IPR. You are resident correspondents in China. You must have noticed that the Chinese Government has stepped up its efforts in the protection of IPR and cracking down of piracy through legislation, law enforcement and administrative measures. Encouraging renovation and protecting IPR serve China's economic development and China's fundamental interest. Some isolated piracy cases, once found, are immediately cracked down upon by the Chinese governments at various levels according to law. The international community and the relevant countries should not have any doubt upon the determination and work by the Chinese Government in the protection of IPR.

Q: Yesterday, a Hong Kongnewspaper Ta Kung Pao reported that there are several criminal cases along China's border with the DPRK recently involving illegal trespassers from the DPRK. Please confirm. It is reported from the ROK media that China's border forces along its border with the DPRK has amounted to 150,000. Please confirm.

A: On the question about the increase of crimes along China's border with the DPRK, I have not read the relevant reports. According to my knowledge, the border is generally stable. The two sides have maintained exchanges in such areas as trade. The two frontier forces have also kept links with each other in the joint efforts to safeguard tranquility and stability along the border.

On the reported mass of Chinese troops along the border with the DPRK, as I mentioned during my last Press Conference, there is no such a thing. Since the beginning of September, in order to unify the administrative system of China's land border, we have transferred the responsibility of guarding the Sino-DPRK border from the frontier forces of the Public Security to the frontier troops of the PLA. This is totally a normal adjustment. The change of guard has already completed.

Q:How many troops are there at China's border with the DPRK?

A: Troops that are required to guarantee security at the border.

Q: Will Korean nuclear issue feature high on Cao Gangchuan's visit to the US?

A: Last Thursday I was asked about his visit to the US, I checked about it and I'd like to tell you what I found out. At the invitation of the US, Vice Chairman of the Military Committee of the CPC Central Committee, State Councilor and Defense Minister Cao Gangchuan will pay a visit to the USin the later half of October. It's just been discussed preliminarily by the two Ministries of Defense. Further details are still under discussion.

It's an important visit to enhance bilateral military exchanges, which will promote mutual understanding and common consensus and constitute a significant part of the bilateral ties. Mr. Cao will mainly discuss military exchanges between the two countries with the USbut I also believe that he will have the opportunity to exchange views with the USon international and regional issues of common interest.

Q: Can you tell us how much economic aid Chinaoffers to other countries each year? And how much DPRK gets from China?

A: In the first place, I'd like to stress that Chinaremains to be a developing country. We offer some economic aid to other developing countries within our capacity. The figure is not a big one and I don't have with me the specific number. One thing for sure is that Chinawill continue to give various forms of economic aid to other developing countries within its capacity, including free assistance, loans and economic cooperation.

Follow-up: Is that a secret?

A: No, it's not. Just that I happen not to have the figure, which should not be very huge, since Chinais itself a developing country.

Q:UN General Assembly declined to list Taiwan's "representation" in the UN on the agenda of this session's UN General Assembly, what's your comment?

A: I made remarks on the question this morning. Beijing time this dawn, the General Committee of the 58th United Nations General Assembly refused to list on the agenda of this session's UN General Assembly the proposal submitted by Gambia and a handful of other countries for the so-called Taiwan's "representation" in the UN through a Chairman's decision. It's already been its 11th times. This again proves that one Chinais a basic principle universally recognized in the international community. It demonstrates the firm determination of the vast number of UN members to safeguard the UN Charter and Resolution 2758 of the UN General Assembly.

It's unpopular for a handful of countries to table such kind of proposal under the instigation of Taiwanyear by year. It's also detrimental to the One China principle recognized by the international community.

Q: The 8th Regular Prime Ministers' Meeting between Chinaand Russiawill be held in Beijingnext week. Will the oil pipeline project be discussed then?

A: Russian Prime Minister will visit Chinafrom September 24th to 25th, which is the 8th regular meeting between the Premier and the Prime Minister. Director Ma Ka of the National Development and Reform Commission attended an important meeting of the China-Russia Energy Cooperation Subcommittee in Moscownot long ago. Officials in charge of energy of both countries had in-depth exchange of views in the energy cooperation and reached an agreement to continue to expand and broaden the cooperation in the field of energy on the basis of the principle defined in the Joint Statement by the heads of states this May, including the oil pipeline project. I believe that during their meeting, they will summarize the overall bilateral ties, economic and trade cooperation in particular and draw plan on further cooperation of mutual benefit including that in the field of energy.

Q: Do you think Chinawill become the main issue in the US Presidential election? How will Chinatry to reduce the impact of being bashed upon?

A: I'm afraid you fail to address the question to the right person. What I can tell you is that Chinavalues its relationship with the US. The USis the largest developed countries and Chinathe largest developing one. We have a lot in common. We also have divergences. But our common grounds far outweigh our differences. We have always hoped that the UScould properly handle the Taiwanquestion, the most important question at the core of bilateral relationship. The US should strictly abide by the three Sino-US Joint Communiqués and the One China policy reaffirmed by its leadership on many occasions and the commitment to oppose to the "Independence of Taiwan" so as to promote the healthy and steady development of China-US relations. Chinastands ready to work with the USto enhance mutual trust and broaden mutual understanding and common consensus so as to promote the cooperation of mutual benefit to grow more extensively.

Thank you for your presence.