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China, Australia likely to sign agreements on nuclear energy, uranium
2006-03-28 01:50:27 THE ASSOCIATED PRESS

BEIJING, March 27(AP) -- China and Australia are likely to sign agreements on nuclear energy and uranium during Chinese Premier Wen Jiabao's visit there next month, a Foreign Ministry official said Monday.

But the official said he didn't know whether Wen would discuss soaring iron ore prices after Australia expressed alarm this month at suggestions that China, the world's biggest steel producer, might try to limit prices paid to Australian ore suppliers.

Agreements due to be signed include a general pact on "peaceful use of nuclear energy" and a more specific deal on the "exploration and exploitation of uranium," said Liu Lieyi, director-general of the ministry's Department of American and Oceanian Affairs.

"During Premier Wen's visit, it is likely these two documents will be signed," Liu said at a news conference. He didn't give any details of the proposed agreements.

Wen will be in Australia April 1-4 during an eight-day trip that also will take him to Fiji for a conference with Pacific island nations on April 5. He also goes to New Zealand for two days and stops in Cambodia.

Australia and China have had "fruitful cooperation" on energy and mineral resources in the past, he said.

Wen, who will be making the first visit to Australia by a Chinese premier in 18 years, is also expected to discuss economic and trade cooperation, political issues and regional security during talks with Prime Minister John Howard.

Australia reacted with alarm this month when Beijing said it might intervene in contract talks between Chinese steelmakers and Australian iron ore suppliers if prices were deemed unreasonable.

A Chinese Cabinet minister later said the government would let the market set prices. But the government warned that Chinese companies can't afford another price increase after a 71.5 percent jump over the past year.

On Monday, Liu said he did not know whether Wen and Howard would specifically discuss the iron ore issue, but said the two countries need to resolve the rising prices.

"What we should do in this area is to strike a balance between supplies and providers so that we have an arrangement that can serve long-term interests on both sides," he said.

Wen is to be accompanied by Foreign Minister Li Zhaoxing, Commerce Minister Commerce Bo Xilai and Ma Kai, head of China's economic planning agency, National Development and Reform Commission.

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