On June 14, 2002, President Jiang, on a state visit to Iceland, held talks with Islandic Prime Minister David Oddsson at the national culture building in Reykjavik. The two sides exchanged views on bilateral relations and major international issues of common concern.

Oddsson warmly welcomed President Jiang on the part of the Icelandic government and its people. He said the Icelandic side highly appreciates China's position that countries should be equally treated despite their size, which is vividly embodied by the three decades' healthy development of bilateral relations and President Jiang's current visit.

Jiang recalled his good talks with Oddsson when the latter visited China in 1994 and expressed his pleasure to see him again. Jiang said that bilateral relations have grown well and cooperation in fishery has deepened. Iceland has become China's important partner in aquatic products trading in Northern Europe while the two sides have begun cooperation in new fields such as shipbuilding. The relavant departments of the two countries are now discussing about strengthening cooperation in the areas of tourism and geothermal energy utilization.

Jiang said that China has always attached great importance to the friendly cooperation with Iceland in various fields. China and Iceland share wide-ranging common interests in maintaining world peace and promoting common development and have respective advantages in economy and culture. The two sides can strengthen exchanges and contacts at various levels and expand mutually beneficial cooperation in trade, science and technology. Jiang said that both sides should encourage and support the relevant departments and non-governmental sectors to carry out various cultural exchanges and he hoped the two sides to work together to deliver even greater achievenments in bilateral friendly cooperation.

Oddsson said that in the recent years Iceland-China relations have maintained a good momentum with frequent mutual visits at various levels and constant new achievements in exchanges and cooperation in trade, economic and cultural fields. He also said that his government observes and sticks to the One China policy and is committed to the development of full-range cooperation with China to raise it to a higher level in the new century.

The two sides also exchanged views on major international issues. President Jiang briefed Oddsson on China's basic judgement on current international situation and its principled position on certain international issues. He particularly stressed that, although the current international situation is intricate and complex, the core issue is still peace and development. The world is rich and colorful, and its diversity should be recognized. Different countries can not and should not follow a single mode of development. Exchanges and dialogue between different cultures are a driving force for the advance of human civilization. Different cultures and social systems should and can co-exist in the long term, draw on each other's strengths to offset their own shortcomings and achieve common development through seeking common ground while shelving differences. Jiang said that China is against any form of terrorism. The international community should strengthen cooperation in this regard, tackle the problem in a comprehensive way by adopting political, economic, diplomatic and legal means, and give full play to the positive role of the United Nations. He also expressed his welcome to the relaxation of tensions between India and Pakistan, and appreciated the measures both sides have taken to this end. He stressed that China sincerely hopes that India and Pakistan can resume dialogue as soon as possible, and resolve all disputes including the Kashmir issue through negotiations, so as to maintain peace and stability in South Asia.