"Firstly, the two sides should strengthen strategic common ground and enhance mutual political trust," Hu told the National Congress of Brazil.

Building on the current dialogue mechanisms, China and Latin America should set up a more comprehensive platform for cooperation, he added.

"China sincerely hopes to have normal state-to-state relations with all Latin American and Caribbean countries to create favorable conditions for mutually beneficial cooperation," said the Chinese president.

Secondly, the two sides should be practical and at the same time creative to tap potential for economic cooperation, Hu said.

The two sides should make great efforts to optimize trade and develop cooperation in high-tech sectors and industries with high added value, he added.

Mutual investment should be taken as priority in short- and medium-term economic cooperation with a long-term view of a free trade area or other forms of mutually beneficial trade arrangements through negotiations, he said.

"Thirdly, the two sides should attach importance to cultural exchanges to deepen mutual understanding," the Chinese president said.

The two sides need to enhance friendship through the establishment of culture centers in each other's countries, the promotion of tourism, mass media exchanges and educational exchanges, and the creation of Sino-Latin American youth festivals,he said.

Hu also spoke on Taiwan in his speech.

"The Taiwan issue is China's internal affair," he said. "The Chinese government and people have confidence, determination, wisdom and capability to realize the ultimate reunification of thecountry."

"Following the principles of peaceful reunification and 'one country, two systems,' with utmost sincerity, we will spare no efforts to seek a peaceful solution to the Taiwan issue.

"However, we will never tolerate 'Taiwan independence'; we willnever allow anybody, by any means, to take Taiwan away from China."

Before his speech, Hu met separately with leaders of both houses of parliament.

Hu arrived here Thursday for a state visit, the first leg of his four-nation Latin-American tour, which will also take him to Argentina, Chile and Cuba.

Hu is expected to attend the Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation slated for November 20-21.