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China and Australia have agreed to develop a relationship of all-round cooperation for the mutual benefit of both nations in the 21st century, Chinese Premier Wen Jiabao, said in Canberra Monday.

"This means that China and Australia will have consultation and dialogue on political, economic and cultural issues, as well as other major international topics," Premier Wen said at a joint press conference with Australian Prime Minister, John Howard.

Wen, who held talks with Howard prior to the press conference, described the common understanding reached between them after an in-depth exchange of views as "very important."

Speaking of the details of the relationship Wen said there were four key points.

First, according to the Chinese leader, the governments of the two countries should continue to meet and discuss issues of common interest. 

Second, China and Australia should work together to enhance economic cooperation in all areas. Currently what was important for the two countries was to complete negotiations for the establishment of a free trade zone between them. 

Third, Wen said, the countries would work together to ensure growth in cooperation in science, technology, culture, sports, tourism and a number of other fields.

Fourth, China and Australia should work together to ensure there was consultation and coordination on major issues on a bilateral level.

During his official visit Wen stressed that China's foreign policy was open. China was ready and willing to live in peace with all other world nations, the Chinese leader added.

Prime Minister Howard said his talks with Wen covered the whole range of economic and political relationships between Australia and China.

"Of all of the major relationships Australia has with other countries none has been more completely transformed than the relationship with China over the last ten years," he said. He described the transformation of the relationship with China as "remarkable."

(Xinhua News Agency April 4, 2006)