Text of report in English by official Chinese news agency Xinhua (New China News Agency)

Kunming, 9 April: China and Thailand will jointly build an economic and trade zone in Chiang Rai of northern Thailand, according to a letter of intent signed between authorities of the two countries.

The project will include a Chinese Commodities Town in Chiang Rai and a duty-free industrial park in Chiang Saen, 70 km from Chiang Rai, according to sources with the Kunming High-Tech Development Zone, the Chinese party to the agreement.

The Thai parties of the pact include the Board of Investment and the national petroleum corporation.

Chinese sources said the building of the economic and trade zone marks that the proposed Sino-ASEAN [Association of Southeast Asian Nations] free trade zone has entered an experimental stage.

By the said pact, the two sides agree to complete the construction of the Chinese Commodities Town in two years and the duty-free industrial park in 10 years, with the total investment at 5bn yuan.

A joint venture will be launched by the two sides to implement the pact, the sources said.

Source: Xinhua news agency, Beijing, in English 0209 gmt 9 Apr 02