- Title: CHINA: Iran offers energy cooperation at Asia summit in Shanghai
- Date: 15th June 2006
- Summary: (W2) SHANGHAI CITY, CHINA (JUNE 15, 2006) (REUTERS AND POOL) CHINESE PRESIDENT HU JINTAO SITTING DOWN WIDE OF SHANGHAI COOPERATION ORGANISATION (SCO) LEADERS SITTING DOWN IRAN PRESIDENT MAHMOUD AHMADINEJAD SITTING DOWN CLOSE UP OF RUSSIAN PRESIDENT VLADIMIR PUTIN SITTING AT MEETING SCO LEADERS SITTING IN TALKS/ HU SPEAKING
- Embargoed: 30th June 2006 13:00
- Keywords:
- Location: China
- City:
- Country: China
- Topics: International Relations,Energy
- Reuters ID: LVA84S70SHMRAVKZ0B0RH7EKRWUG
- Aspect Ratio:
- Story Text: Leaders from the six member countries of the Shanghai Cooperation Organisation (SCO) - China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan - are convened in Shanghai to discuss stepping up energy, counter-terrorism and economic cooperation.
Chinese President Hu Jintao, speaking at the summit in Shanghai on Thursday (June 15) said that the region although essentially stable faced a number of challenges and called for a unified approach to combat them.
"Just like the rest of the world, this region is basically stable. But at the same time the three forces (terrorism, extremism, and fragmentation) are rampant, drugs are widespread, cross-border crimes are serious, and particularly economic development is lagging. We need to comprehensively build up our cooperation, work for a long-lasting peace, shared glory and a harmonious region," said Hu.
Iranian President Mahmoud Ahmadinejad offered energy cooperation to oil-thirsty China and other countries on Thursday, seeking to win friends but avoiding direct mention of Iran's nuclear standoff with the West.
Ahmadinejad attended a summit of the Shanghai Cooperation Organisation (SCO) as an observer, but his presence threatened to upstage the meeting and irritate the United States.
"Extending these trade ties to political and cultural exchanges can play a role in enhancing regional and world stability and make the SCO a strong institution on a regional and global levels. We should work together to throw out any threats in the region," he said in a speech.
Ahmadinejad added that Iran, the world's fourth-largest oil producer, was ready to host a meeting of energy ministers from member countries to look at cooperation in exploration, exploitation and transportation.
Iran is China's third-biggest supplier of crude oil imports.
The SCO was born out of the "Shanghai Five", which was founded in 1996 to demilitarise the border between China and the former Soviet Union.
China now sees it as a way to protect development in the largely Muslim region to its west, arguing that it serves as a bulwark against terrorist activities and religious extremism.
But U.S. officials have suggested China and Russia want to use the group to counter Washington's influence in Central Asia, where the U.S. military has bases or access to facilities.
There were no direct references to frictions with Washington. But a declaration issued by member countries said they would not "allow their territories to be used to undermine the sovereignty, security or territorial integrity of other member states".
Iran's inclusion in the group -- albeit as an observer along with India, Pakistan and Mongolia -- has irked the United States, whose Defense Secretary Donald Rumsfeld has called Tehran the world's leading terrorist nation.
Iran is considering a package of incentives and penalties the five permanent members of the U.N. Security Council and Germany put forward to persuade it to abandon uranium enrichment.
Tehran says it has a right to a civilian nuclear programme, and denies U.S. accusations it is trying to build an atomic bomb.
If Iran rejects the package, the Western powers may push for U.N.-backed sanctions, a step China and Russia have resisted.
The Chinese foreign ministry welcomed on Thursday (June 15) Iran's willingness to discuss ways of solving its nuclear stand-off with the US and the EU and to consider a proposal put forward by the West.
"We have noted Iran's new position. We welcome Iran's willingness to talk to relevant parties. We hope Iran will seriously consider the package on offer and respond positively
China's President Hu Jintao met with his Russian counterpart Vladimir Putin for talks and a signing ceremony on the sidelines of the security summit on Thursday.
Once Cold War foes, ties between the two have been growing as China seeks to tap Russia's oil and gas resources to fuel its booming economy and with the two sharing common views on how the dispute over Iran's nuclear program should be resolved.
Trade between China and Russia, who share a 4,300-km (2,700-mile) border, reached nearly 30 billion U.S. dollars last year, and the two signed a series of energy agreements during a visit by President Vladimir Putin in March.
Beijing and Moscow also see common ground in trying to ensure stability in Central Asia and in checking U.S. presence there.
Observer nations Iran, Pakistan, India and Mongolia are also in attendance at the SCO summit, and Afghanistan is along as a guest of China.
Iran has applied to join the organisation.
UN sanctions have been threatened against Iran if it does not cease uranium enrichment, amid accusations it is trying to build an atomic bomb. Beijing and Moscow have said they are reluctant for sanctions to be imposed.
The SCO is one of China's first concerted forays into regional diplomacy.
The group held joint military exercises in March in Kyrgyzstan, Uzbekistan and Tajikistan. Next year they will be held in Russia.
Russian President Vladimir Putin said in bilateral talks with Ahmadinejad he agreed with Iran that all countries were entitled to peaceful use of nuclear energy, Russia's RIA news agency said.
But Putin added that nuclear technology must be used in such a way that it adheres to the international community's concerns, the report said.
Ahmadinejad told Putin that the positions of their two countries were clear and very close to one another.
Beijing's long-standing ties and growing trade with Iran give it some leverage in the nuclear dispute, but analysts say it is also constrained by the economy's dependence on Iranian oil.
Hu is to hold talks with Ahmadinejad on Friday.
Some in the United States and Europe are starting to worry as much about the timing of Iran's reply as its content. In Washington, a Western diplomat said the main concern was that Iran would string out a response until an International Atomic Energy Agency meeting in September.
During this time it could edge closer to mastering the ability to enrich nuclear fuel. - Copyright Holder: POOL (CAN SELL)
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