china myanmar12dec1
china myanmar 12dec1
bbc news
Chinese President Jiang Zemin has held talks in Rangoon with Senior General Than Shwe at the start of his first visit to the military-ruled country.President Jiang was earlier given a lavish red-carpet welcome on arrival for his three-day trip.
The Associated Press news agency reported that representatives of the two countries signed seven agreements after the talks between the two leaders.
The visit comes after a decade of cooperation between the two states but also amid some tension over drug-trafficking and Burma's military links with India
The agreements signed on Wednesday cover technical and economic cooperation, investments, security and cooperation in fisheries.
Burma relies heavily on China for arms and investments.
'Friendship'
According to AP, Chinese Foreign Ministry spokesman Kong Quan told a news conference that Beijing was offering $100m in aid and investment to Burma.
Most of that disbursement was to go towards human resources development, he was reported as saying.
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The cross-border drugs trade is on the agenda
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But a BBC correspondent says that although the two countries have been close allies for more than a decade, there has been growing friction between them recently.
He says China is likely to demand that Burma do more to stamp out the cross-border drugs trade.
Nevertheless, President Jiang could not have received a warmer welcome from the country's top three leaders.
As well as Than Shwe, chairman of the ruling State Peace and Development Council (SPDC), President Jiang was also greeted by Vice Chairman General Maung Aye and head of military intelligence Lieutenant-General Khin Nyunt.
The visit comes as Burma faces increased international pressure from leaders and human rights groups to release from house arrest pro-democracy leader Aung San Suu Kyi.
The 1991 Nobel Peace laureate was placed under house arrest in September 2000, 10 years after her National League for Democracy (NLD) won a landslide election that the military refused to recognise.
Democracy hopes
Over the last year, Aung San Suu Kyi has been holding secretive United Nations-brokered talks with junta leaders which have raised hopes of a breakthrough.
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Aung San Suu Kyi: Secret talks with military
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However in comments reportedly made to former Japanese Foreign Minister Kabun Muto, Aung San Suu Kyi cautioned that dialogue had yet to start in full.
"It is a period in which both sides are attempting to erase mutual mistrust," she was quoted by Japan's Jiji Press news agency as telling Mr Muto.
Her comments were reported following a statement by Burma's ruling State Peace and Development Council saying it was committed to creating a "functioning democracy".
But the NLD has said talks must start yielding more tangible results.
Indian influence
Chinese officials have said that Mr Jiang's visit is aimed at "enhancing understanding, friendship and co-operation" and will include the signing of bilateral agreements.
Our correspondent says China is also aiming to strengthen its influence in Burma to counter the regime's growing military ties with India.
On Tuesday Burma announced the release of more than 200 Chinese prisoners ahead of Mr Jiang's arrival as "a sign of goodwill".
An official statement did not say why the prisoners had been jailed, but an opposition report said some had been arrested on charges of illegal entry