On the afternoon of June 4, visiting President Hu Jintao and his Mongolian counterpart Nachagyn Bagabandy held a formal talk.

Bagabandy extended a warm welcome to Hu for his first visit to Mongolia since he took office as Chinese president and expressed his brief that Hu's visit would definitely push forward the Mongolia-China relations.

Hu gave a positive assessment of the fruitful cooperation between the two countries in various areas in recent years.
He stressed that China's new leadership would assume a more active attitude to develop friendly cooperation with Mongolia, in accordance with the guideline of remaining good terms and good partner with neighbors.  

To promote the China-Mongolia ties to a new high in the new century, Hu made a four-point proposal. First, China proposed that, on the basis of the existing friendly relations between the two countries, the China-Mongolia partnership of good-neighborliness and mutual trust be established. The two countries would forever be good neighbors, good friends and good partners. Second, the frequent exchange of top-level visits between the two countries should be continued in the interest of further expanding bilateral relations. Third, efforts should be made to promote mutually beneficial trade and economic links between the two countries and seek cooperation of various channels, fields and types. Fourth, the two sides should strengthen their cooperation in international and regional affairs in joint efforts to maintain peace and stability in the region.

Bagabandy noted that the Mongolian and Chinese peoples live as neighbors for generation, and in the recent years had witnessed the rapid development of bilateral ties on the basis of mutual respect and mutual trust. He added that it was Mongolia's long-term state policy to steadfastly develop friendly and mutually beneficial cooperation with China. He also said that Mongolia fully approved of the Chinese side's proposal for establishing the partnership of good-neighborliness and mutual trust and other positive suggestions, reiterated that it would firmly adhere to its One China policy.

The two heads of state also had an in-depth exchange of views on ways to further expand and deepen bilateral trade and economic cooperation. Both sides agreed to conduct cooperation in finance, infrastructure and the fight against sandstorms. Bagabandy said Mongolia attached importance to its trade and economic cooperation with China and expressed its thanks to China for providing preferential loans to Mongolia as a way of encouraging large cooperation projects. He added that Mongolia also welcomed China's inclusion of Mongolia in the list of destination countries for Chinese tourists.

The two leaders also briefed on each other the economic and social development in their respective countries and exchanged views on the situation in the region, the regional cooperation in Asia and other issues.

After their talks, Hu and Bagabandy attended the signing ceremony for cooperation documents, including an agreement on economic and technological cooperation between the two countries. They held a joint press conference after that. Both said they were satisfied with the results produced at their talks and stressed that strengthening China-Mongolia friendship and cooperation was in the fundamental interests of both sides. The two presidents also pledged joint efforts to establish and develop the China-Mongolia partnership of good-neighborliness and mutual trust.