China, Turkmenistan Sign Landmark Gas Deal

Ashgabat, 17 July 2007 (nCa) --- Turkmenistan and China signed Tuesday a landmark gas deal and other agreements on the first day of the official visit of the Turkmen president to Beijing.

President Gurbanguly Berdymuhamedov, who left Ashgabat for Beijing early morning, had tête-à-tête and expanded talks with his Chinese counterpart, Hu Jintao, and both sides issued a joint communiqué that reflects growing relations between the two countries.

Turkmenistan and China established diplomatic relations in 1992 and the present visit of Berdymuhamedov coincides with the 15^th anniversary of bilateral relations.

Berdymuhamedov said that trade turnover between China and Turkmenistan had increased tenfold since 2000 and now it stands at US $ 340 million. He also said that Chinese companies are doing 45 investment projects in Turkmenistan with total value of US $ 878.2 million and 1.5 billion Yuan.

Sixteen enterprises with Chinese capital are registered in Turkmenistan. China is mainly active in oil and gas, communications, railways, transportation, healthcare, construction and trading in Turkmenistan.

The relations between the two countries registered a sharp upward trend in 2006 when late President Niyazov visited China last year.

Berdymuhamedov said that Turkmenistan attaches great importance to fulfillment of the general agreement on the pipeline project for transporting Turkmen gas to China. The agreement was signed by Niyazov and Hu Jintao in April 2006 in Beijing.

“We believe that the gas pipeline will be built according to the terms stipulated in the Agreement. Turkmenistan guarantees delivery of [committed] volumes of natural gas under the agreement,” said Berdymuhamedov.

The documents signed Tuesday include:

• Joint declaration signed by President Berdymuhamedov and Chairman Hu Jintao
• Agreement between the governments of Turkmenistan and China on technological cooperation
• Agreement between the governments of Turkmenistan and China for granting a Chinese soft loan to Turkmenistan
• Agreement between the ministry of education of Turkmenistan and ministry of education of China on cooperation in the field of education
• Agreement between CNPC and the Turkmen state agency for management and use of hydrocarbon resources for cooperation [PSA] on the contact territory ‘Bagtyarlyk’
• Agreement between CNPC and Turkmen state concern TurkmenGaz for sale-purchase of natural gas

According to the Chinese sources, Turkmenistan will supply 30 billion cubic meters of gas to China annually for a period of 30 years.

China will develop gas field at the right bank of Amudarya River under an agreement that is being called by the Chinese media as Amudarya River PSA.

The proposed pipeline between Turkmenistan and China can conveniently be called Central Asia Gas Pipeline (CAD Pipe).

Here is the unofficial translation of the joint communiqué issued Tuesday:

Joint Declaration – Turkmenistan and China

About further strengthening of relations and bilateral cooperation

President Gurbanguly Berdymuhamedov visited China on 17-18 July 2007 on the invitation of Chairman Hu Jintao of China.

During the visit President Berdymuhamedov and Chairman Hu Jintao held talks in frank and friendly atmosphere, exchanged opinion in details on bilateral relations and also some regional and international questions, representing mutual interest, and have reached complete mutual understanding.

1. The parties have emphasized that during the 15 years of bilateral relations the Turkmen-Chinese relations have shown the tendency of dynamic development, allowing to achieve high results on all round cooperation. High level of trust exists between the two states on policy, mutually advantageous cooperation in economy, mutual enrichment in culture, mutual support in international relations, bringing real benefits to the people of both the countries; both sides are satisfied with this state of affairs. Valuable gains have been achieved for the people of both the countries, which the sides are obliged to protect and augment. The parties highly estimate the important contribution of Saparmurat Niyazov, the first president of Turkmenistan, in developing the Turkmen-Chinese relations on the basis of friendship and cooperation.

2. The Chinese side emphasizes that further strengthening of both the friendship and cooperation with Turkmenistan is an important component of foreign policy of China. The Turkmen side underlines that all-round development of friendly relations and cooperation with China is one of the priority directions of the foreign policy of Turkmenistan.

The sides emphasize the importance of observance of principles incorporated in the communiqué and other political documents signed during the 15 years of diplomatic relations, will continue to maintain and develop contacts at various levels including the mutual visits at the highest level, carefully implement all bilateral documents, continuously expand and deepen exchanges and cooperation in the political, trade-economic, energy, security and humanitarian spheres, and lift the Turkmen-Chinese relations of friendship and cooperation to a new, even higher level.

3. The Turkmen side emphasizes that it will continue to adhere to One China policy, [acknowledges that] the Peoples Republic of China is the sole government, representing all of China, and Taiwan is an integral part of the territory of China. Turkmen side is against any attempts to create Two Chinas, or one China and one Taiwan, opposes independence of Taiwan in any form, including de-jure independence of Taiwan, is against the participation of Taiwan in any international or regional organization where only the sovereign states can be the participants, and will not support any official contacts with Taiwan.

The Turkmen side supports all efforts of the Chinese government aimed at unification of the country, considers Taiwan an internal matter of China in which there should be no interference of external forces. The Chinese side highly appreciates this basic position of China.

The Chinese side confirms respect and support for the chosen path of Turkmenistan for development on the basis of its internal situation, supports Turkmenistan’s efforts for protection of state independence, sovereignty and territorial integrity, also for social stability, economic development and national harmony. The Chinese side supports the policy of permanent neutrality of Turkmenistan and considers that it plays a constructive role in the development and in the preservation of stability in the region.

4. The parties emphasize that they will continue to render firm support to each other on basic questions related to fundamental interests of the parties, including, will not allow the use of their territory by the third state or other forces for activities that can cause damage to the other party.

5. The parties highly estimate the positive results of the Turkmen-Chinese trade-economic cooperation achieved during the last years, are completely determined to undertake effectual measures to attain complementary advantages in trade, engineering, finance, resources and other spheres, to promote implementation of agreed projects of economic cooperation in such important areas as energy, transportation, communication, chemical industry, construction, textile and food processing industry, to raise the quality and level of bilateral trade-economic cooperation.

The parties, with pragmatic positions, will promote development of effective mechanism of activity of intergovernmental commission on trade-economic cooperation to the fullest to realize its role as stimulus of bilateral economic cooperation. The parties, according to the legislations of both the countries, will give the physical and legal persons and other economic subjects on the territories of states favourable conditions and provide protection for normal trade-economic activity.

6. The parties mark that the general agreement between Turkmenistan and China for the gas pipeline project, signed on 3 April 2006, carries great importance. The parties, proceeding from the strategy of development of long-term mutually advantageous cooperation between the two countries, will accelerate the process of negotiation on energy cooperation, to finish the construction of the gas pipeline as early as possible, and to move the bilateral practical cooperation in trade-economic, energy and other spheres on a way of all-round development.

7. The parties mark that the agreement between Turkmenistan and China on struggle against terrorism, separatism and extremism, signed on 3 April 2006, carries great importance. The parties confirm that they will carefully implement the agreement to further strengthen coordination and cooperation between the law enforcement agencies of both the countries, will resolutely fight the ‘three evils’ including, with vigour, the ‘East Turkestan’ to protect the peace, security and stability of both the countries and the Central Asia region.

8. The parties consider that the humanitarian cooperation is an important component of Turkmen-Chinese relations, bridge of friendship, connecting the hearts of the people of th two countries. The parties are fully determined to further strengthen the exchanges and cooperation in the fields of culture, education, sports, tourism, and to stimulate expansion of friendly contacts between the local and public organizations, to support joint realization of days of culture and art, and exchange of delegations between the youth organizations.

9. The parties consider that the countries of Central Asia have original historical and cultural traditions, and the world community should respect the independent choice of the people of each state of Central Asia to choose its own way of development on the basis of national peculiarities. Stability and security of the Central Asian countries, their steady economic development and continuous social progress corresponds to the common expectations and fundamental interests of the people of each country of the region, and have important place in preservation of peace and stability in Asia and all over the world. The parties, together with other countries of Central Asia, will apply efforts using the available mechanism of regional cooperation to transform this region into a region of peace and harmony.

10. The parties underline that the UN is the most universal, representative and influential international organization, playing important role in preservation of peace in the world, assisting general developing, and stimulating international cooperation. The parties support the necessity of optimum reforms in the UN to raise its relevance and efficiency, to strengthen its ability to resist different kinds of dangers and especially to increase its contribution to general development. At the time of reforms it is necessary to carryout democratic consultation to search for common opinion. The parties will coordinate and consult more often on the question of UN reforms and other interesting questions.

11. President Berdymuhamedov invited Chairman Hu Jintao for official visit to Turkmenistan. Chairman Hu Jintao expressed thanks for the invitation and would visit Turkmenistan at a time convenient for both parties.

The President of Turkmenistan, Gurbanguly Berdymuhamedov

Chairman of the Peoples Republic of China, Hu Jintao

Beijing, 17 July 2007