Thank you very much, dear friends.

I want first of all that you would understand and not be scared - I am not going to read the whole of this book. Because I have already read all this. This book is by a person held in high esteem not only in this country, but also in ours, in Russia, a person who is very much loved in very many countries of the world, President Jiang Zemin -- a book on socialism with Chinese characteristics, published in Russia. And I at the beginning, before my speech, would like to hand over with pleasure this Russian-language book to the Rector as a gift for the University.

Just now Mr. Rector and President Jiang Zemin told me very briefly about the history of your university.

Beijing University is not just a prestigious and the oldest institution of higher learning in your country. Bei Ta -- that's how Beijing University is called in your country - symbolizes both the history and the present dynamic evolution of China.

People in Russia well know that students and faculty members of Beijing University stood at the origins of the May Fourth Movement. President Jiang Zemin also told me about that a couple of minutes ago this morning. And the national patriotic elan born in those days largely predetermined the historic breakthrough which China accomplished in the 20th century.

Bei Ta graduates are famous not only in your country, but also far outside it. They are contemporary, highly educated specialists, brought up on the traditions of millennial Chinese culture. Now, too, they influence the development of the principal lines of China's policy, economy and science, to no small extent mold its relations with the world community, strengthening the positions of their country in the global space.

I know that in this hall there are also alumni of Soviet and Russian institutions of higher learning. It is especially pleasant for me to greet them. I know that many of you are bound with your Russian colleagues not only by fruitful cooperation, but also by personal friendship.

Your joint creative and professional successes are an example of effective cooperation and partnership. And the accumulated capital of good relations is a major support in this work.

And today in this audience, an exacting audience, a keen audience, I would like to share briefly my thoughts on key problems of the present-day world. And, of course, on the opportunities that are opening up before us, that are opening up in cooperation between Russia and China.

Esteemed friends.

Russia and China are two unique world civilizations. This is exactly how we are perceived in the world. And this is what to a significant extent determines the content of our bilateral relations, and the place of Russia and China in the world today.

Our peoples have a rich thousand-year culture and spiritual legacy. Legacy to which we remain faithful also in today's fast changing world.

In the twentieth century both Russia and China had serious historical trials. They went through profound social changes. Now too our countries are both coping with largely similar tasks.

On one hand, we have to engage in persistent work on modernizing the economy and raising its efficiency. On the other -- we are strengthening the national positions in international economic and financial systems. And in these undertakings we can, and I think, must rely on mutual support. Yesterday we spoke a great deal on these issues with the leaders of China and I think those are right who think that our potentialities can quite effectively complement each other.

President Jiang Zemin yesterday summed up in the course of our talks the results of ten years' cooperation. And he is absolutely right with the assessments which he made. I completely agree with them.

Russia well knows what successes the Chinese people have achieved under the leadership of President Jiang Zemin. It is not without meaning that this period in the current history of China is called the "great era of innovation and revival." I think that as an era of innovation and revival it would also be correct to describe the last decade in relations between our two states.

We are not merely good neighbors. We are equal partners who respect the interests of each other. It was proceeding from such principles in relations that we concluded last year the Treaty of Good-Neighborliness, Friendship and Cooperation.

This responsibility is particularly great today, when the processes of globalization are changing, forming up in a new way political, economic and financial relations among states in the world. It is necessary to impart to these processes a more controllable and predictable character. Otherwise, short-sighted egoism may end in a danger even for the most powerful states of the world.

Today Russia and China have important common tasks - to combat extremism and separatism, prevent regional conflicts and counter transnational crime. A serious task is to ensure stability in Asia. It seems that this region is currently ever more becoming a target of criminal designs and actions of international terrorism.

In this connection I believe that we need to strengthen coordination in the struggle against terror. It is necessary to continue our joint work in preventing the spread of weapons of mass destruction and the drain of nuclear and other dangerous technology.

It is necessary to combine the efforts of not only states, but also of business and scientific communities and public forces. In a word -- a concentration of intellectual potential is needed for the elaboration of comprehensive solutions to the key problems of today.

In realizing such solutions, moreover, we are duty bound to rely upon the rules of international law and the purposes and principles of the Charter of the United Nations. To actively use the universal character and capabilities of this organization and its institutions. And in dealing with crisis situations - to give priority to politico-diplomatic methods and within the framework of the decisions of the United Nations Security Council.

Disregard of international agreements and accords is absolutely inadmissible. Just as inadmissible is the practice of "double standards" and attempts at unilateral force-based decisions. And here our foreign policy approaches and priorities with China absolutely coincide.

We regard the present Russian-Chinese summit meeting as a landmark event in relations between the two states.

Today millions of people are involved in cooperation between China and Russia. This is a multilevel system of contacts, exchanges and ties in the most diverse fields. And continuously we must additionally feed this living mechanism with new ideas and initiatives.

We already have quite a list of interesting programs, including in the areas of energy, high technology and transportation. These projects not only bring appreciable mutual benefits and create new jobs. In essence - they alter the whole configuration of the economic infrastructure of Eurasia. And this is our common contribution to the development of world integration processes.

I believe scientific-technical cooperation between the two countries is opening up new opportunities. All the more so as we have a serious base - the wide experience of joint work accumulated over the decades in the most diverse fields of science and technology. The present-day joint developments in the field of high technology have a great future. They -- with the proper support of our governments -- may well occupy a worthy place in international markets.

Coordinated efforts in protecting the environment are equally important. And the scientists of our countries are quite capable of coordinating steps in the struggle against diseases that present a danger to health and in the full sense of the word to the future of humanity.

The benefits from joint work are fully appreciated in the regions of Russia and China as well. And I consider that direct interregional cooperation can become a key element of our bilateral ties. It is no coincidence that the Russian delegation today includes both the plenipotentiary representative of the President of Russia in the Siberian Federal District and the heads of a number of subjects of the Russian Federation which directly adjoin Chinese territory and actively cooperate with their colleagues, the governors of China's provinces.

We see Russian-language centers developing in China, and Chinese-language centers in Russia. A decision has been adopted to establish cultural centers and hold annual festivals of culture of the two countries. Our plans call for the promotion of cooperation in sports, tourism, cinematography, and the media. China has won the right to be the capital of the Olympic Games of 2008 and we are confident that this will be a vivid event in international life, in international sporting life. I am confident that China will get ready for this major undertaking and wish Chinese sportsmen success.

Finally, we have started creating joint educational institutions. It is gratifying that Beijing University also acts as a leader here. And as the Rector told me several minutes ago, Beijing University has organized joint postgraduate training with Moscow State University.

Yesterday I had a meeting with the General Secretary of the Chinese Communist Party, Comrade Hu Jintao. I believe that there are all the possibilities for us to develop with the representatives of the "fourth generation of leaders" the same good personal relationship as we had with their predecessors.

The scope of the tasks we are charting today is very great. And, of course, it is for young people, in the first place the young people of Russia and China, to accomplish many of them.

Chinese philosophy is rich in wise sayings. One of them reads: "May descendants enjoy coolness in the shade of trees planted by their ancestors." The saplings of friendship, which have been grown by our peoples, have already turned into mighty trees. And I am confident that you not only will appreciate the results of what has already been done, but will also yourselves initiate many good deeds which will be for the benefit of our great peoples.

In conclusion I would like to once again thank you for the warm welcome and wish success both to your own university and prosperity, of course, well-being and prosperity to the entire Chinese people.

Thank you for your attention.

Questions to President Putin from Chinese students and teachers.

Question: Esteemed Mr. President. I am a teacher of Russian language and literature. As is known to us, interest in Russian culture is very great among the leaders of our country. While visiting Tsarskoye Selo, for example, our President Jiang Zemin read a work by Pushkin. Will you please say how you usually acquaint yourself with Chinese culture and generally with China? Thank you.

Answer: Speaking of President Jiang Zemin, he not only reads poems in Russian, he also sings Russian songs, he speaks and sings in the English and Italian languages.

And I must say that in the club of leaders of states, in which, as young people in our country say, there is constant "hanging around," we all the time keep gathering somewhere together to solve different questions, President Jiang Zemin, I would say even without exaggeration, is treated with great respect and love. I simply can't keep up with him. I even do not set myself such tasks.

As to Chinese history, culture, philosophy and literature, I can firmly tell you that in Russia all this has aroused a sincere and very great interest practically over the entire period of existence of Russia as a state.

We very often use the phrase "great country," "great nation," "great state." If there is something to which this can be applied in full, then it is Chinese culture.

In our country, though not as much as one would like, nevertheless there are references to Chinese culture both in school programs and in university programs. This is always present, so to speak, on our intellectual stage in Russia.

Today among young people there is growing interest in China generally and in the Chinese language and Chinese culture in particular.

I already said in my interview to Chinese television that quite unexpectedly for me even my daughters had taken up Wu Shu. And one of them has quite recently taken up the study of the Chinese language. In earnest -- she is taking classes with a teacher several times a week.

I must tell you that this was absolutely unexpected for me, I am frankly speaking -- well, that means there is a need among young people. She is sixteen. This is, of course, a sign of the growing interest in China. So that for me there appears one more very close channel for obtaining information on your country.

Question: Esteemed President Putin, Esteemed President Jiang Zemin, Esteemed Rector Xu Zhihong, good morning. I have the following question - the process of reforms causes a redistribution of interests. Esteemed President Putin, when you are carrying out such very bold reforms in Russia, how do you resolve and regulate questions relating to redistribution of interests. Especially when your actions, your measures become a hindering factor in the realization of the interests of certain groups of persons? Thank you.

Answer: In the course of any transformations, any transformations affect somebody's interests. The most important thing is that all these transformations should aim exclusively to ensure economic growth, the development of the country, the improvement of the living standards of the greater part, the bulk of the population, the overwhelming majority of people. And then these actions will always be justified, always will be understood.

And the second point. Plan and carry out everything with the utmost openness. In this case even insignificant errors and mistakes can be understood and from them all of society, not just those who only plan some or other steps, must draw conclusions, correct them and move on in the right direction. I do not think that there is a tragedy here, I repeat - the most important thing is that the measures should all be aimed at achieving a national result and that all of the actions should be democratic in nature, should be utterly transparent and understandable to the most ordinary citizen of the country.

Question: President Vladimir Putin, hello. My question concerns relations between Russia, NATO and the United States. NATO's eastward expansion is currently proceeding very intensively. And, we presume, the three Baltic states will soon join this alliance, the NATO alliance. And these countries, as we know, always were a "buffer zone" between Russia and the NATO countries. Do you think Russia will in the not too distant future be able to again build this "buffer zone" between Russia and NATO? This is in the first place. And secondly, my question also concerns relations between Russia and the United States in Central Asia and in the Caspian Sea area. The character of relations between your two countries bears a similar character like your relations on the NATO issue. And how do you think -- in the present situation where Russia has certain requests in certain relations with the United States, how Russia will settle its relations and ties with the US in this field in Central Asia and in questions related to the Caspian Sea, to oil development and production? Thank you.

Answer: With regard to NATO. As is known, this bloc was created in the period of confrontation between the two sociopolitical and world systems -- the Warsaw Treaty, on the one hand, and NATO, on the other. Therein was the logic of the creation of this bloc. At that period of time there arose a certain equilibrium between the two blocs. It was largely thanks to this equilibrium that stability and international peace were then ensured.

Now there is neither the Warsaw Treaty nor the Soviet Union, which was the core of this bloc. Therefore, at first glance, there has disappeared the meaning of the organization "NATO" itself. And so, well, they now rush about in order to find work for themselves, thinking of what to busy themselves with. There is no enemy, after all. With whom are they to struggle? Now you broke into laughter in the hall, yet this is a serious question, as a matter of fact.

At the same time, new threats have appeared -- international terrorism, the spread of weapons of mass destruction, extremism of the most diverse kinds, political and religious extremism. All this also existed before, but these "diseases" have now become especially acute, have become global and are really threatening the world space and international peace.

The leaders of major NATO countries have begun ever more frequently to speak of the necessity of transformation towards a change of the priorities of the activity of this organization.

We also believe that these threats are today real. And in order to counter just these threats, we have set up together with NATO a joint organization, the so called Council at 20; that is, the nineteen NATO countries plus Russia. We are satisfied with the way our joint work is developing on these issues. We do not rule out that with due consideration of our national interests and if this transformation of NATO does really take place, our relationship with this organization can expand in some way.

As to the NATO expansion, we take a negative view of this. We see no point in this and hold that the very fact of mechanical expansion does not strengthen international security. Although, in order to be absolutely frank, objective, well, first, it has to be said that any country has the right to choose the system for its security which it considers necessary. Secondly, I repeat, in order to be objective in full, it has to be acknowledged that the countries which enter NATO, evidently, presume that this creates for them a situation of being part of the Western club, a situation of stability, provides better conditions for the development of the political and economic sphere.

As to the "buffer zone," it is necessary if beyond this space, beyond this "buffer" there begins a hostile environment. We would not like that somebody would consider that a hostile environment begins beyond the boundaries of the Baltic states for Russia.

We will build relations of friendship, good-neighborliness and equal partnership with all the countries in the world, including Europe, with all the NATO countries. We are counting on others to relate to us in the same way. If we encounter a different approach, Russia will respond accordingly.

With regard to relations with the United States. This is our biggest, one of the largest trade and economic partners. Our partner in the antiterrorism coalition. Our joint actions in this direction are sufficiently effective.

At the same time, I must say that our positions on key international questions do not always coincide. We consider it absolutely counter-productive to lead relations into the field of confrontation. On the questions on which our opinions with the United States do not coincide, we will, of course, defend our national interests, on questions and on regions.

As to the Caspian Sea region, we, of course, have there our own interests, both economic and political, and we will persistently implement our decisions and try to achieve the aims which we have set for ourselves. This also applies to the zone, I repeat, of the Caspian Sea, rich in energy resources and oil. There, too, we may have some coinciding interests with the United States. Well, interests are changing, particularly in the field of energy policy, slightly changing in the world with consideration of the unstable situation in the Middle East. The world economy is interested in stable supplies of energy resources from new regions. One of the few regions which can ensure the volume of supply, the quality, the logistics is Russia, Siberia, our Far East, and the Caspian Sea region. This is big, large-scale work, there will be enough room here for all and the promise of benefits is great. It is in this way that we are going to act. We hope that our partners will reciprocate.


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