At the invitation of Premier Wen Jiabao of the State Council of the People's Republic of China, Prime Minister Madhav Kumar Nepal of the Federal Democratic Republic of Nepal paid an official visit to China from December 26 to 31, 2009.

During the visit, Prime Minister Nepal called on President Hu Jintao and National People's Congress Standing Committee Chairman Wu Bangguo, and held talks with Premier Wen Jiabao. In a sincere and friendly atmosphere, the leaders of the two countries had an in-depth exchange of views and reached extensive understanding on the development of China-Nepal relations as well as on international and regional issues of mutual interest.

1. The two sides reviewed the time-honored China-Nepal friendly relations and exchanges, and noted with satisfaction that since the establishment of the diplomatic relations in 1955, China-Nepal relations have withstood changes of the international situation and have been growing in a consistent, steady and healthy manner. The characteristics of the relationship are equality, harmonious coexistence and ever-lasting friendship.

The two sides maintained that good neighborly friendship and deepening of mutually beneficial cooperation serve the fundamental interests of the two countries, meet the common aspirations of the two peoples and are conducive to peace and development in the region and the world at large. The two sides decided to establish and develop a China-Nepal Comprehensive Partnership of Cooperation featuring ever-lasting friendship on the basis of the Five Principles of Peaceful Coexistence.

The two sides agreed to respect each other's independence, sovereignty and territorial integrity, as well as each other's social system and development path chosen in the light of their respective national conditions, and respect and understand each other's major concerns and core interests. The two sides will adhere to the principle of peaceful coexistence, non-alignment and non-intervention in each other's internal affairs, develop all-round friendly exchanges and cooperation on the basis of equality and mutual benefit, share development experience, and embrace opportunities, add vigor to their good-neighborly and friendly cooperation, enhance ever-lasting friendship and achieve common development.

The two sides agreed to further promote exchange of high-level visits and contacts at all levels and make full use of the existing mechanisms, including the diplomatic consultation, the China-Nepal Joint Economic Committee Meeting, the Non-governmental Cooperation Forum to expand exchanges and cooperation among government departments, parliaments, parties, local governments and business communities of the two countries.

2. Both sides believed that economic and trade cooperation is an important part of the China-Nepal Comprehensive Partnership of Cooperation. The two sides agreed to further intensify cooperation in trade, investment, information technology, transportation, agriculture, infrastructure development, poverty alleviation and other fields on the basis of equality and mutual benefit. The leaders also agreed to direct the Bilateral Consultative Mechanism between the two countries to review all dimensions of our bilateral cooperation, explore new areas of cooperation, coordinate and facilitate actions, and make recommendations for further consideration at the higher levels.

The Nepalese side expressed thanks to the Chinese side for the long-standing valuable assistance for Nepal's economic development, extended a warm welcome to Chinese businesses to actively participate in hydropower construction and infrastructure development in Nepal and expressed readiness to cooperate with China to discuss the establishment of special economic zones in Nepal and attract Chinese companies for investment and development there.

The Chinese side stated that the Chinese Government encourages and supports competent and well-established Chinese companies to invest in Nepal. The Chinese side will provide necessary support and assistance to the Nepalese side in hydropower construction, infrastructure development, health, education, human resources development and other fields in the light of the economic and technical feasibilities of relevant projects. The Chinese side is ready to continue providing assistance to Nepal within its ability, and further carry out bilateral economic and technical cooperation and personnel exchanges to make positive contribution to its economic development in the changed context of Nepal.

Both sides expressed satisfaction with the implementation of various projects under Chinese assistance in diverse fields for the socioeconomic development in Nepal. The Nepalese side stated that the continued and enhanced level of Chinese cooperation extended in the current transitional phase would be of additional significance to the people of Nepal. The Chinese side stated that China is mindful of the development challenges faced by Nepal and will provide appropriate encouragement, incentives as well as concessional financing to mutually agreed projects to the best of its ability. The Nepalese side expressed sincere appreciation for the kind gesture and understanding.

The Chinese side stated that it will gradually provide to Nepal zero-tariff treatment to 95 percent of the products in accordance with its commitment made at the United Nations High-Level Event on the Millennium Development Goals. The two sides agreed to take measures to expand the bilateral trade and achieve sustained, steady and balanced development in the years ahead.

Both sides agreed to enhance various modes of connectivity such as land route and air services, between the two countries to promote proximity and linkages, facilitate bilateral engagement and collaboration as well as enhance other economic opportunities and benefits including improving land transportation infrastructure between the two countries.

The Chinese side stated that it supports Nepal's identification of agriculture as its priority area, and is ready to strengthen exchanges and cooperation with the Nepalese side in germplasm resources exchange, personnel training and joint cultivation of fine breeds and improved varieties. In this context, the Chinese side stands ready to provide assistance, within its capacity, to Nepalese agricultural institutes in terms of faculty and capacity-building.