China, Russia and four Central Asian states set up a permanent administrative body yesterday in Beijing to co-ordinate their fight against terrorism and increase economic and trade links, a senior official said yesterday.

Foreign ministers from the Shanghai Co-operation Organization (SCO), which also includes Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, hailed the inauguration of SCO Secretariat yesterday, promising to maintain peace and stability in the region.

"Fighting three evil forces (terrorism, separatism and extremism) is a priority in the group's co-operation field,"said the group's new secretary general Zhang Deguang.

He told the press that all member states are now preparing for a document on anti-drug trafficking, believed to be a major source of revenue for terrorists.

Besides security co-operation, the group is also paying considerable attention to partnerships in economic and trade sectors.

Zhang described collaboration in security as well as economic and trade sectors as "two wheels of a car,'' which means progress in both fields are significance for the development of the group.

"I strongly believe in the historic mission of the SCO, which is to serve as a bridge between the European and Asian continents,"said Russian President Vladimir Putin in the congratulatory message for the inauguration of secretariat.

All presidents of member states sent messages, expressing their determination to make the SCO an important part of the global security system.

President Hu Jintao met all foreign ministers yesterday, urging them to make "practical achievements in anti-terrorism, security and economic and trade sectors."

The secretariat has a staff of 30 from all member states. They are under the leadership of one secretary general and three deputy secretary generals. It is made up of three working groups, responsible for political and security affairs; economic, trade and cultural affairs; as well as press and law affairs, said Zhang.

The SCO, born as the Shanghai Five in 1996, included Uzbekistan in 2001.

Zhang said that the budget of the organization this year is US$3.5 million, with US$2.16 million for the secretariat and the rest for the anti-terrorism centre in the Uzbek capital of Tashkent. All members will share the budget voluntarily, according to Zhang, noting China and Russia each share pay 24 per cent, followed by Kazakhstan at 21 per cent, Uzbekistan at 15 per cent, Kyrgyzstan at 10 per cent and Tajikistan at 6 per cent.

Zhang told the press that SCO member states are working on a protocol on accepting new members expected to be passed at the summit meeting in this summer.

"We are going to provide such status as observer and dialogue partners to countries with co-operative willingness to (join) SCO," Zhang said. "The organization is an open body, adopts the non-aligned and non-confrontation policy."

(China Daily 01/16/2004 page2)