MANILA, THE PHILIPPINES: China signed a series of investment and loans agreements with the Philippines yesterday as Premier Wen Jiabao visited the country.

The agreements, covering trade, cultural protection, agriculture, transport and customs cooperation, were signed in the presence of Wen and Philippine President Gloria Macapagal-Arroyo, at the conclusion of over an hour of talks.

Wen flew to Manila late yesterday after the Association of Southeast Asian Nations (ASEAN) summits in Cebu, in the central Philippines.

Philippine President Gloria Macapagal Arroyo welcomes Premier Wen Jiabao during their meeting in Manila yesterday. Wen is in Manila for a two-day state visit after attending the 12th ASEAN summit in Cebu. AP

His official visit came a day after China signed an agreement on trade in services with the 10-member ASEAN, a further step towards establishing a free trade area between China and ASEAN by 2010.

A $500-million loan agreement will allow the continuation of the Northrail Project, a rail link between Metro Manila and Central and Northern Luzon, while another memorandum of understanding worth $500 million will provide funding for other key infrastructure projects, Philippine government officials were quoted by local media as saying.

The Chinese government is financing more than 80 percent of the Northrail project through official development assistance.

The two countries have also signed a framework agreement to expand and deepen bilateral trade and economic cooperation. The deal will prioritize agriculture, fisheries, public works, infrastructure and housing among other areas.

Wen told Arroyo that China-Philippines relations were going through a "golden period."

"China hopes to work with the Philippines to promote China-ASEAN development and East Asian cooperation" while cementing bilateral ties, said Wen.

Speaking about the ongoing joint development of the South China Sea between China, the Philippines and Vietnam, Wen said the project was of great significance to safeguarding peace and stability in the region, as well as enhancing mutual trust between the three countries.

He said he hoped the three countries would reach an early consensus on the next stage of the development of the South China Sea.

Arroyo said she appreciated China's aid to the economic and social development of her country, saying the Philippines consider China as an important cooperative partner.

She said her country hopes more Chinese companies will invest in the Philippines, particularly in agriculture, fisheries and infrastructure.

Both also agreed that the two countries would strengthen their partnerships in finance, disaster prevention and rescue and defense.

Wen and Arroyo last met in late October during the Philippine president's official visit to China for the China-ASEAN Summit in Nanning, capital of South China's Guangxi Zhuang Autonomous Region.

Trade expected to double

China and the Philippines are expecting their bilateral trade volume to double from $17.56 billion in 2005 to at least $30 billion in 2010.

Negotiations for the planned free trade agreement were facilitated by an economic partnership forum held last June when Commerce Minister Bo Xilai visitd the Philippines.

Local media reported yesterday that the Philippines Department of Agriculture would also sign 19 agribusiness agreements with China, covering the development of over 1.2 million hectares of land for rice, corn, and highvalue crops in separate deals.

(China Daily 01/16/2007 page2)