China, US seek stronger military ties ( exchanges of top military officials, professional staffs)

BEIJING, Feb. 1 (Xinhuanet) -- Chinese Defense Ministry and its US counterpart rounded off their first special policy dialogue here Tuesday with both voicing their satisfactions, a sign of warming ties between two militaries of the two countries.

The two-day closed-door talk covered a wide range of issues, including the Taiwan issue, maritime military security and exchange programs in 2005, said a Chinese military spokesman Tu Qiming, who is in charge of the American and Oceanian affairs in the Foreign Affairs Office (FAO) under the Chinese Defense Ministry.

The two sides had "a very clear and direct exchange," said Deputy Under Secretary of US Defense Ministry Richard Lawless, who was leading the US side in this security dialogue.

We are "pleasantly surprised and pleased" with many issues being discussed and we know we are "successful in some areas," said Lawless, who is responsible for the Asia Pacific region in the US defense ministry.

The Chinese side is satisfied with the dialogue, as the meeting was conducted in a "candid, cooperative and constructive" atmosphere and the result is "fruitful," Tu gave a media briefing,after Deputy Chief of the General Staff of the Chinese People's Liberation Army Xiong Guangkai held a talk with Lawless Tuesday morning.

The US officials here are "very representative, which demonstrates our desire to have a very good exchange," Lawless told Xiong, adding the United States would like to push forward the military exchanges at various levels.

Noting the Taiwan issue remains "the biggest factor" affecting China-US relations, Xiong said China hopes the United States will honor its commitment to adhering to the one-China policy, observing the three Sino-US joint communiques and opposing "Taiwan independence".

Lawless said the United States "hopes the Taiwan issue can be peacefully resolved."

According to Tu's briefing Monday, US Defense Secretary Donald Rumsfeld expressed the interest to visit China this year, but the exact date was still under discussion.

"Both sides agreed to promote their military ties through more pragmatic exchanges," Tu said.

This year will see exchanges of top military officials, professional staffs and military institutions between the two militaries, Tu said.

Citing the on-going communication between the two ministries as"smooth," Tu said installing a hotline between the two ministries is under discussion.

Tu also said the two sides did not touch upon the European Union's arms embargo against China or nuclear issues on the KoreanPeninsula.

Last week, a US delegation headed by former US Defense Secretary William Perry came to east China's Shanghai for a seminar on Sino-US security.

Perry was also hosted by Chinese Premier Wen Jiabao and Chinese Defense Minister Cao Gangchuan. Enditem

China, Cuba sign oil production contract
02/01/2005 -- 10:59(GMT+7)

Havana (VNA) - The Cuba Oil Company (Cubapetroleo) signed a production contract with the China Petroleum & Chemical Corp (SINOPEC) to work in areas around the Cuban island believed to contain oil deposits, Cuba's Ministry of Basic Industry reported on Monday.

The deal was reached during an early Sunday meeting attended by Li Lianfu, China's ambassador to Cuba, Cuba's Basic Industry Minister Yadira Garcia and Minister of Government Ricardo Cabrisas, according to the report.

"The contract confirms ascending political and commercial relations between the two countries," it said.

Economic and trade cooperation between the two countries have developed quickly, particularly after a two-day visit to Cuba by Chinese President Hu Jintao in November 2004, during which a number of bilateral cooperation agreements were signed.

In late December, Cuban President Fidel Castro announced the discovery of a crude oil deposit off the coast of Santa Cruz del Norte, east of Havana, containing up to 100 million barrels.

Cuba currently produces 75,000 barrels of oil daily, about half of what it needs. -Enditem

(One of the company to make Air Force One is own by China)JOHN YOUNG, ASSISTANT SECRETARY OF THE NAVY: Both teams were required with their proposal to submit a certification that there were compliant with the applicable provisions, statutes and regulations, as I said, including buy America provisions. Both teams have done that. And beyond that, it's not a factor in the source selection.

(

SYLVESTER: Senator Chris Dodd from Connecticut, where Sikorsky's parent company is based, released a statement today, saying, "Sikorsky should have won this contract hands down. In my view, the United States government should not be outsourcing its security overseas, and that's exactly what this decision does. It's unconscionable that America's chief executive will be flying around in a foreign helicopter," end quote.

Now, Lockheed said they are honored that the Pentagon has placed its trust in the company for this vital mission, and they are committed to meeting the demanding requirements of the U.S. government. Analysts say the Lockheed design may have clinched the contract for the company.

LOREN THOMPSON, LEXINGTON INSTITUTE: The long-term trend in presidential transportation is when you buy something new, it's bigger. Air Force One now is much bigger than it used to be. The same thing is happening with the president's helicopter. Lockheed Martin offered three engines instead of two. They offered a more spacious helicopter. They won.

(END VIDEO CLIP)

SYLVESTER: The first helicopter will be tested in 2008, but the fleet won't be operational until 2009 -- Lou.

DOBBS: Lisa, can Sikorsky do anything about this? Can it protest the deal, ask for a review of the Pentagon's decision?

SYLVESTER: Well, the Pentagon will present to Sikorsky its justification material, essentially why they lost this contract. The company will then have a week to review, and then they can file a protest, asking the General Accountability Office to do an independent congressional review. But Lou it's very unlikely that the decision will be overturned -- Lou.

DOBBS: Despite the fact that Lockheed Martin has never built a helicopter in its entire history?

SYLVESTER: This is one of those really interesting things where you had outside pressure, Italy and Britain directly lobbying the White House for this contract. So it's going to be interesting to see how much of the outside influence the foreign government influence played in this final decision, although the Pentagon will say that politics was not a deciding factor, Lou.

DOBBS: No, but it's certainly interesting that the president of the United States would be the, if you will, the prototype passenger for the Lockheed Martin's first venture into building a helicopter.

Thank you very much, Lisa Sylvester.

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