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China to aid Pak's ministry of Kashmir affairs

Anil K Joseph in Beijing

China will provide loans to Pakistan's ministry of Kashmir affairs under one of the seven agreements signed on Thursday amid heightened tensions between India and Pakistan, which has evoked 'serious concern' from Beijing.

The agreements, all covering the economic fields, were signed in the presence of Chinese President Jiang Zemin and visiting Pakistani President Pervez Musharraf.

Chinese Export-Import Bank will give loans to the Pakistani ministry that oversees affairs in Kashmir and northern areas, in addition for copper and gold mining projects in Pakistan as part of the agreements that would give a boost to the comprehensive partnership between China and Pakistan.

The summit on the first day of Musharraf's first visit to China was held amid growing tensions between India and Pakistan in the wake of the December 13 attack on Parliament in New Delhi.

Kashmir issue figured among other subjects at the Jiang-Musharraf meeting, according to the Pakistani official media.

But the Chinese foreign ministry said hours before the arrival of the Pakistani leader that it was 'seriously concerned' at the developments in the region.

China urged both sides to 'exercise restraint' and engage in dialogue to resolve their differences and maintain regional peace.

Pakistan's APP news agency quoting official sources said there was a complete unanimity of views on matters of mutual interest between the two sides during the Jiang-Musharraf meeting.

The two leaders had a one-to-one meeting for half an hour before the delegation level talks.

During the talks, Jiang said that Musharraf was an 'old friend' to the Chinese people and that he believed his visit will 'vigorously' advance the comprehensive partnership of collaboration.

"You are an old friend familiar to the Chinese people and you have made positive contributions to the development of the friendly relations and cooperation between our two countries and peoples. We appreciate that," Jiang said.

Musharraf called China his country's 'cornerstone' ally even as the two countries reaffirmed they are strong allies.

"The cornerstone of Pakistan's foreign policy is its close association and relationship with China," Musharraf said in comments signaling that China remains Pakistan's key ally and that their ties will not be affected by Islamabad's decision to join the US-led anti-terrorism coalition.

Musharraf told Jiang that China has been Pakistan's trusted friend and their relationship has remained time-tested.

"We are very positive that in the future... this strategic association and relationship will continue beyond old times," he said.

The visit marks the 50th anniversary of diplomatic relations between China and Pakistan.

President Musharraf was assisted in the talks by Finance Minister Shaukat Aziz, Commerce Minister Razzak Daud, Petroleum Minister Usman Aminuddin and Foreign Secretary Inamul Haq.

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