DHAKA, 8 April 2005 — An agreement clearing the way for the first direct flights between China and Bangladesh was signed yesterday as Chinese Premier Wen Jiabao visited Dhaka on the second leg of his south Asian tour.

The new flights will link the Bangladeshi capital Dhaka with the south Chinese city of Kunming and the Chinese capital Beijing.

“The direct air link between Dhaka and Beijing will start on May 18,” Foreign Secretary Hemayetuddin said.

Wen, on his maiden tour of the region as premier, was given a 19-gun salute as he arrived at Dhaka’s Zia International Airport where he was greeted by Prime Minister Khaleda Zia and most of her Cabinet.

China is Bangladesh’s second biggest source of imported goods after neighboring India and officials say the number of people seeking to travel between the two countries is growing. National carrier Biman Bangladesh Airlines, which flies to 26 destinations, chose Kunming as it is the nearest Chinese city to Bangladesh and a long-haul destination would not be a financially viable at this point in time.

Bangladeshi and Chinese officials also signed a raft of other agreements covering development, trade and economic cooperation.

A large trade imbalance exists between the two countries and China would send a business delegation to Bangladesh later this year and arrange trade fairs to narrow the gap by increasing imports from Bangladesh, the foreign secretary added.

Chinese businesses have invested an estimated $137 million in Bangladesh, one of the world’s poorest countries, and provided more than 20,000 much-needed jobs.

Wen began his South Asian tour in Pakistan Tuesday. He will spend one day in Bangladesh and another day in Sri Lanka before heading to India on April 9 for four days.

Bangladesh and China also signed a key energy agreement that will see them cooperate on the peaceful use of nuclear energy and also explore coal mining.

“The accords were signed following official talks between the prime ministers of China, Wen Jiabao, and Bangladesh’s Begum Khaleda Zia,” Hemayetuddin said.

During the talks, China agreed to give Bangladesh concessional loans worth $600 million - including $400 million for setting up digital telephone exchanges in cities and urban centers. “The peaceful use of nuclear energy includes power generation, production of medicines and technology for treatment of patients,” Hemayetuddin said.

China also agreed to finance production and management at a 64 million ton capacity coal mine at Barapukuria in northern Dinajpur district.

The mine, developed by China National Import and Export Corporation at a cost of $251 million, went into production late last year. The coal will be primarily used by a planned 250-megawatt power plant at Barapukuria, energy ministry officials said.