China and its western neighbor Nepal should and will have still closer ties, President Jiang Zemin told visiting Nepalese King Gyanendra Bir Bikram Shah Dev on Wednesday.

During their first official meeting, Gyanendra said that as China's close friend, Nepal would adhere to its friendly policy towards the nation and adhere to the "one China" principle. Nepal would allow nothing to deter the smooth growth of bilateral relations, nor would it permit its territory to be used as venues for any activity undermining China's interests, he stressed.

President Jiang agreed with the Nepalese king on his positive evaluation of bilateral ties, saying that no historical problems or present disputes exist between the two countries, who face only the common task of further improving their friendship.

China supports the efforts of Gyanendra and the Nepalese government to crack down on anti-government rebels, Jiang said, adding that his country opposes and condemns all violence and terrorist activities.

Nepal borders China's Tibet Autonomous Region with Nepal to the south of Mt Everest and Tibet to the north. China and Nepal traditional enjoy good relations.

Gyanendra said Nepal cherishes its friendship with China, and Nepal-China ties have withstood the test of changing times. The two nations share broad common interests and identical views on many regional and international affairs.

Nepal welcomes an even more prosperous China and calls for it to play a bigger role in the international arena, he said.

The king thanked China for supporting and helping Nepal in the past, pledging his kingdom's readiness to boost cooperation with China, especially with the Tibet Autonomous Region.

He said he and his government would try their best to impress Nepal-China friendship, which had already benefited the Nepalese people, on the younger generations.

The smooth path of Sino-Nepalese ties was attributed to Nepal's late King Birendra, Jiang said, and he hoped that King Gyanendra's current visit would lift bilateral ties to a new level.

President Jiang set forth a four-point proposal for promoting Sino-Nepalese friendship and cooperation.

Both sides should conduct a range of multi-level exchanges, he said. Apart from continuing the traditional practice of top leaders' visits, more exchanges should be encouraged between congresses, political parties, industrial and commercial circles, the press and non-governmental organizations from both countries.

Moreover, he noted, both sides should try harder to explore bilateral trade and economic cooperation, to elevate exchanges and cooperation between China's Tibet and Nepal and to boost communication and cooperation in regional and international affairs.

An agreement on trade between China's Tibet and Nepal, to be signed late Wednesday, would greatly facilitate communication and cooperation between Tibet and Nepal, he added.

"We sincerely thank Nepal for its long-standing support in issues like Tibet, Taiwan and human rights," Jiang said, noting that he hoped to continue such good cooperation in the international arena.

Nepal is one of China's important neighbors, he said, and despite their differences, both sides have always supported each other as equals. China is "a trustworthy neighbor of Nepal".

Jiang also praised the role of King Gyanendra in maintaining political stability, economic growth and improving people's living standards.

King Gyanendra, who is here for a seven-day state visit to China at the invitation of President Jiang, arrived in Beijing on Tuesday.