China wrapped up the second phase of its joint anti-terror drill with western neighbor Kazakhstan on Saturday in Yining, in western China's Xinjiang Uygur Autonomous Region.

The Yining exercise, which began at 9:30 a.m., was a 5-part simulation of a battle in which Chinese guards gradually force terrorists into a narrow valley and cliff caves.

It lasted two hours and ten minutes, with groups of mock terrorists being eliminated by police forces consisting of artillery, police dogs, cavalry, special services and other troops.

Chinese troops taking part in the "Tianshan-I (2006)" exercise in Yining were mainly border police and anti-terror special forces.

Some 700 policemen equipped with advanced weapons including armed helicopters and armored anti-riot vehicles were deployed in the exercise, the police authority said.

Around 100 observers from Shanghai Cooperation Organization (SCO) member states - China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan - were in Yining to evaluate the drill.

Highly satisfied, they applauded the troops taking part, police said.

The drill is the first ever joint SCO anti-terrorism exercise to associate the two countries' law enforcement bodies and special forces.

China and Kazakhstan on Thursday finished the first phase of the drill in Kazakhstan's eastern Almaty region. Kazakhstan's border-guard force also mobilized armed helicopters, armored anti-riot vehicles and other sophisticated military equipment.

China's police authority said the exercise was held to demonstrate the SCO's progress in combating terrorists in the region, namely the "three evil forces" of terrorists, splittists and extremists.

According to China's Ministry of Public Security, the exercise was a concrete demonstration of the consensus on enhancing security cooperation reached by SCO member states at the SCO summit in June, and a means to improve coordination between law enforcement departments and special services.

International terrorism has threatened security in the region, police officials earlier said.

In December 2003, China identified a couple of "East Turkistan" groups as terrorist organizations. The groups are believed to have troubled China's western region, especially the Xinjiang Uygur Autonomous Region, for years.

"The exercise will help establish SCO's active role in maintaining regional security and stability," said Meng Hongwei, China's vice minister of public security and commander of the Chinese troops for the drill.

Meng said the police force will also explore new patterns of security cooperation through the exercise, noting that both traditional combat forces, like cavalry, and modern forces, are taking part in the drill.

"Security in the SCO states is generally stable, but we cannot ignore the challenges in fighting terrorism," Meng said.

He said the "three evil forces" were still active in the region while crimes such as cross-border drug trafficking were on the rise.

"The SCO should provide more opportunities to cooperate," said Meng, adding that the fight against terrorism was a tough, long-term task.

China shares a 1,700-kilometer border with Kazakhstan, the longest after its boundary with Russia.

Dr. Feng Yujun, of the China Institute of Contemporary International Relations, said the two countries settled border disputes in 1999, and cross-border anti-terror cooperation is of great political and strategic significance to both of them.

A number of anti-terror exercises have been carried out by the SCO member states, including the war game codenamed "Peaceful Mission - 2005" held by Chinese and Russian forces. The SCO member states will stage another round of anti-terrorism military exercises in Russia next year.