KEY POINTS:
CEBU - New Zealand remains on track to sign a free trade agreement (FTA) with China by April 2008 - making it the first developed country to do so -Prime Minister Helen Clark says.
Helen Clark and Chinese Premier Wen Jiabao held a 45 minute bilateral meeting late last night (NZT), ahead of a major summit of Asia-Pacific leaders in the Philippines city of Cebu today.
After the talks Helen Clark said both she and Mr Wen believed an FTA could be completed before April 2008.
"They would like to see agreement reached by April 2008 and I said that given that it is in both our interests both of us the sooner the better," she said.
In 2004 New Zealand was the first developed nation to enter into negotiations with China, which will enter their 10th round in a fortnight. Australia and Iceland have since entered negotiations, but officials believe New Zealand remains ahead.
Helen Clark said New Zealand's dairy sector was proving a sticking point in talks, but the purpose of last night's talks was to give the negotiators a clearer direction.
"I believe it did. Mr Wen has always said dairy was not an issue for him and that is very important for us," Helen Clark said.
New Zealand's dairy industry - often seen as a threat - could actually provide other countries with an opportunity to grow their own dairy export sector through the sharing of New Zealand's advanced agricultural technology in joint ventures.
Helen Clark said it was clear, despite huge variance in the two countries' sizes, that China valued its relationship with New Zealand.
Mr Wen was particularly supportive of New Zealand's work to achieve stability in the Pacific, where both countries had an interest.
"The Chinese place a great deal of emphasis on peace and stability and they are very concerned about what has happened in the South Pacific this year.
"In the case of both Solomon Islands and Tonga Chinese people were targeted in riots and lost their livelihoods, had all their property destroyed and China was involved in the evacuation of its citizens so its of tremendous concern to them."
There had been increasing co-operation between the two countries in the Pacific in recent years, particularly regarding aid priorities.
That was set to continue.
Both leaders also affirmed that China must play a leading role in six-party talks aimed at resolving the Korean nuclear crisis.
"We see China as having a unique role in resolving the issues with North Korea.
"We know that China does not want to see the Korean peninsula nuclearised. We know that North Korea doesn't listen to anyone very much, but if it does listen to someone it will be China and its role in hosting these talks, keeping some momentum going, is greatly appreciated."
Helen Clark and Mr Wen last met in April, during a visit by the Chinese Premier to New Zealand.
At the time they committed to twice yearly bilaterals.
In December Helen Clark also held talks with Hong Kong chief executive Donald Tsang and she will also make an official visit to the Chinese administrative authority of Macao on her way home from the Philippines.
* Grant Fleming travelled to the Philippines with the assistance of the Asia New Zealand Foundation
- NZPA
