On the afternoon of July 10, 2002, President Jiang Zemin met with visiting Nepalese King Gyanendra Bir Bikram Shah Dev at the Great Hall of the People. Jiang put forward some proposals on further promoting Sino-Nepalese good-neighborly friendship and cooperation. He pointed out that Nepal is an important neighbor of China's. Despite their differences, China and Nepal have always treated and supported each other as equals; China is a trustworthy friend of Nepal's.

King Gyanendra first expressed his thanks for the warm hospitality of the Chinese side. He said that Nepal has good feelings toward China; both he and the late King Birendra highly cherish the friendly relations between Nepal and China. Gyanendra said that as close neighbors, Nepal and China have kept good relations that have withstood the test of changing times as well as trials and hardships. The two nations share broad common interests and identical views on many regional and international affairs. Nepal welcomes an even more prosperous China with greater achievements made in all fields, and calls for it to play a bigger role in the international arena. He thanked China for supporting and helping Nepal in the past years, pledging his kingdom's readiness to boost cooperation with China, especially with the Tibet Autonomous Region. He said that Nepal borders China's Tibet Autonomous Region. There are great potentials of cooperation and exchanges. Nepal is willing to play a more active part in the development of Tibet.

Nepal reiterated that as a close friend of China, Nepal would adhere to its friendly policy towards China and the One China policy. He stressed that Nepal would allow nothing to deter the growth of bilateral relations, nor would it permit its territory to be used as venues for any activity undermining China's interests.

Gyanendra said that the friendly relations have already benefited the Nepalese people. He and his government would try their best to sustain and develop the good relations for the younger generations.

President Jiang agreed with the Nepalese king on his positive evaluation of bilateral ties, saying that no historical problems or present disputes exist between the two countries, who face only the common task of further improving their relationship in the new period.

Jiang said that the smooth path of Sino-Nepalese ties is attributed to the importance attached and efforts made by the Nepalese royal family, especially the late King Birendra. During Jiang's visit to Nepal in 1996, he and the late king reached an agreement on establishing Sino-Nepalese good-neighborly partnership for the generations to come. Jiang said that the Chinese side will forever cherish the memory of the contributions King Birendra has made to the friendship between the two countries. The Chinese side is also willing to lift bilateral good-neighborly and friendly ties to a new level, taking King Gyanendra's current visit as a good opportunity.

President Jiang set forth several proposals on further developing the Sino-Nepalese friendly and good-neighborly cooperative relations:

First, both sides should actively conduct a full range of multi-level exchanges. Apart from continuing the traditional practice of top leaders' visits, more exchanges should be encouraged between parliaments, political parties, industrial and commercial circles, the press and non-governmental organizations from both countries, in order to increase mutual understanding and trust. He mentioned that the Sino-Nepalese Friendship Association has just been formally founded recently, which has offered a new channel for the enhancement of non-governmental exchanges.

Secondly, both sides should vigorously expand the Sino-Nepalese trade and economic cooperation. Both economies in China and Nepal have their respective strengths of complementarity. To strengthen the mutually beneficial cooperation is in the common interests of both countries. The Chinese side hopes this kind of cooperation could develop on a broader scale and more deeply.

Thirdly, both sides should actively promote exchanges and cooperation between China's Tibet and Nepal. Tibet and Nepal share border, which provides a particularly favorable natural condition for the development of cooperation. Jiang said that an agreement on trade and other issues between China's Tibet and Nepal, to be signed that day, would greatly facilitate communication and cooperation between Tibet and Nepal.

Fourthly, both sides should boost communication, coordination and cooperation in regional and international affairs. Jiang said that the Chinese side sincerely thanks Nepal for its long-standing and precious support on issues like Tibet, Taiwan and human rights, noting that he hopes to continue such good cooperation in the international arena.

Jiang also highly praised the active role of King Gyanendra in maintaining political stability, promoting economic growth and improving people's living standards. He said that China supports the efforts of Gyanendra and the Nepalese government to crack down on anti-government rebels, adding that the Chinese government opposes and condemns all violence and terrorist activities. He also said that he believes King Gyanendra and his government have the capability to maintain peace, stability and development of the country.

After their meeting, the two headsof state attended a signing ceremony on economic, technical, and trade cooperation agreements between China and Nepal. The persons in charge of the related departments of both countries signed the two agreements.