BEIJING - China marked the start of a state visit by Iraqi President Jalal Talabani on Thursday with agreements to reduce IraqÂ’s debt by a large marginÂ’ and expand economic cooperation. The countries also were expected to discuss a 1997 deal for ChinaÂ’s National Petroleum Corp. to develop the billion-barrel Al Ahdab oil field. The US$1.2 billion contract was signed by the company, also known as PetroChina, and the government of former Iraqi leader Saddam Hussein. PetroChina began renegotiating the Al Ahdab deal in October. The project could be reactivated if IraqÂ’s Parliament passes a hotly debated oil law.
Talabani, accompanied by a large delegation of ministers, met with Chinese President Hu Jintao late Thursday, but reports on their talks did not mention them discussing IraqÂ’s rising violence. 'Your visit here shows that the new Iraqi government wants to develop China-Iraqi friendship,Â’ Hu told Talabani at the Great Hall of the People, the seat of ChinaÂ’s legislature, following a formal welcoming ceremony. 'I hope we can develop our relationship and the questions that interest both our countries,Â’ Hu said.