"Advancing China-U.S. relations serves the fundamental interests of our two countries and peoples and contributes to peace, stability and prosperity of the Asia Pacific region and the whole world," Hu said in a speech delivered at a dinner here hosted by friendly organizations in the United States.

First, the two countries should increase understanding, expand common ground and build long-term and stable constructive and cooperative China-U.S. relations.

"China values its relations with the United States, which are high on its foreign policy agenda," the president said, adding that China is committed to long-term peaceful coexistence, mutual benefit and common development with the United States.

The two countries should continue high-level exchanges, maintain and expand consultation at all levels, pursue strategic dialogue, foster strategic mutual trust and promote two-way cooperation.

Second, the two nations should seize opportunities, be creative,consolidate and expand the foundation for bilateral economic cooperation and trade, Hu said.

"Economic cooperation and trade are a pillar sustaining China-U.S. relations," he noted. "We should encourage Chinese and American companies, large, medium-sized and small ones alike, to build strong business ties and explore new opportunities for cooperation in such fields as telecommunication, environmental protection and services, and strengthen strategic consultation on energy and increase energy cooperation."

China and the U.S. should resolve trade disputes through consultation on an equal footing and expanding mutually beneficial cooperation, Hu said.

He said China will continue to honor its WTO accession commitments, expand market access, strengthen Intellectual Property Rights (IPR) protection and increase imports from the U.S.

China also hopes that the U.S. side will take positive steps to promote the growth of business ties between the two countries, Hu said.

The Chinese president also said the two nations should increase dialogue and cooperation on macroeconomic policy to facilitate the balanced and orderly growth of global economy.

Third, he said, the two countries should adhere to the principles, honor the commitments and properly handle the question of Taiwan in accordance with the three China-U.S. Joint Communiques.

"The question of Taiwan involves China's core interests," the Chinese president stressed, "The principles laid down in the three Joint communiques should be strictly observed. This is crucial forthe sound and stable growth of China-U.S. relations."

"China will continue to make every effort and work together with our Taiwan compatriots with every sincerity to ensure the peaceful and stable development of cross-Straits relations and China's peaceful reunification, Hu said.

But "we will never allow the 'Taiwan independence' secessionist forces to split Taiwan from China under any name or in any form," he stressed.

Hu appreciated the commitment by President George W. Bush and the U.S. government to adhering to the one China policy and the three Joint Communiques and their opposition to "Taiwan independence."

"It is our hope that the U.S. side will fully honor its commitment... This meets the common strategic interests of China and the United States and will contribute to peace and stability in the Taiwan Straits and the Asia Pacific region," Hu noted.

Fourth, he said, the two sides should maintain close consultation, take up challenges and strengthen communication and coordination on major international and regional issues.

The Chinese side is ready to deepen anti-terror cooperation with the U.S., work with the U.S. to uphold the international non-proliferation regime, properly address the Iranian nuclear issue through diplomatic means and negotiations, and continue to peacefully resolve the nuclear issue on the Korean Peninsula through the Six Party talks, Hu said.

China is also ready to strengthen consultation and coordination with the United States in environmental protection, public health and disaster relief and reduction, he added.

The Chinese side will continue to work with the U.S. to promote stability and prosperity in the Asia Pacific region, step up discussion and cooperation in the United Nations, APEC, ARF and other regional and multilateral fora in a common effort to promoteopen and inclusive regional and multilateral cooperation, the Chinese president said.

Fifth, Hu said the two nations should draw on each other's strengths, and strengthen friendly exchanges between the two peoples.

"China and the United States both have cultures that we take pride in and they have both made contribution to the human civilization and progress of mankind," Hu said.

"Therefore, China and the United States should step up cooperation in science and technology, culture and education, increase exchanges between our youths, media and think tanks and expand friendly exchanges between our provinces and cities," the president said.

Sixth, Hu said, the two sides should respect each other, treat each other as equals and view differences in a proper context and manage them properly.

China, in line with its national conditions, will continue to reform its political structure, develop socialist democracy, expand citizens' orderly participation in political affairs and ensure that people exercise democratic election, democratic decision making, democratic management and democratic monitoring in accordance with the law, the president said.

China takes human rights seriously, he stressed. The country respects and upholds human rights and this has been written into China's Constitution.

China will keep advancing human rights in the course of its social development. The Chinese people fully enjoy freedom of religious belief as provided for by law, Hu said.

"Due to different national conditions, it is normal for China and the United States to disagree on some issues," President Hu said. "We should seek common ground while shelving differences, conduct consultation on an equal footing and promote mutual progress through exchanges," he said.

The Chinese president arrived in Washington Wednesday evening from Seattle. The United States is the first leg of Hu's current five-nation tour, which will also take him to Saudi Arabia, Morocco, Nigeria and Kenya.