Countries Sign Five-Year Trade Deal

A new five-year trade pact between China and Pakistan includes an agreement to co-develop military aircraft including Airborne Warning and Control Systems (AWACS).

The deal was sealed in a meeting between Pakistan's President General Pervez Musharraf and China's President Hu Jintao last Friday. Musharraf says it will boost bilateral trade between the two countries.

Part of the agreement included a Memorandum of Understanding (MOU) between the Pakistan Air Force (PAF) and state-owned Chinese Electronics Technology Corporation (CETC).

A statement from PAF says the MOU provides "for long-term collaboration and co-development in the fields of aircraft manufacturing and other related fields including AWACS."

The statement specifies the two agencies will collaborate in the improvement and further development of a Chinese Airborne Early Warning System with the stipulation that "the same may be delivered to Pakistan in coming years."

Collaboration between the two countries on the development of military hardware isn't new. PAF is already teamed with China Aviation Technology Import-Export Corporation (CATIC) in developing the JF-17 "Thunder," the Pakistani version of China's FC-1 "Fierce Dragon."

The JF-17 is a light, multi-roll fighter armed with medium-range weapons and can be used for both air-to-air and air-to-ground duties. Pakistan will reportedly take delivery of eight JF-17s this year.

The relationship between China and Pakistan is long-standing with most of the aid flowing one way. China has helped Pakistan with such projects as developing nuclear power generation and building a deep-sea port.

China's Hu said, "We feel proud to be friends of Pakistan and will further enhance our strategic relationship."

During the trade visit Musharraf took the opportunity to mention the continuing conflict between Pakistan and India vowing to resolve the differences. "Success in this endeavor would usher in a new era of peace and prosperity in South Asia," he said.

FMI: http://islamabad.usembassy.gov, www.pakistanconsulateny.org