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said that the Russians were satisfied with most areas of their relationship. They had signed 24 Agreements with the Chinese last year including a declaration on principles

Trade had reached record guiding their bilateral relations.

The aim was to move levels last year totalling $5.6bn.

Their previously forward and build upon these agreements. shared ideology provided a good basis for improving the relationship. They shared many mutual interests including a wish to move to a market-economy. Border negotiations were very important and had led to a number of open-checkpoints. The Russians had demonstrated flexibility over such talks. Kyrgizstan, Kazakhstan, Turkmenistan and Tajikstan had formed a united delegation and during Jiang's visit to

The only Russia last year had signed several agreements. 54km of border which remained a problem were not adjoining Russia. The Russians had no objections to FSU States

The Chinese were, surprisingly, negotiating separately. equally flexible aiming only for stability in the border

areas.

20. Mr Solovyev continued saying that there were a number of areas where relations could still be improved, including talks on reducing military forces and increasing Confidence-Building Measures.

The Russians hoped next year

The Russians had

As far as military

to conclude an agreement with the Chinese on the latter. They also wanted to begin talks on reducing military forces in Asia. This could have a significant impact on the area. The time was right to begin the process. good contacts at every level, amongst the leadership, ministries and individual organisations. cooperation was concerned the Russians stressed that they were cautious over their arms-sales policy. known they had supplied a number of SU27 fighters. was no intention to upset the balance of power. continued to press the Chinese to take the fullest part in

As was well

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