A Foreign Ministry spokesperson said yesterday that claims by the US Defense Secretary that China's defense budget is now the largest in Asia and third largest in the world were "totally groundless."

"In recent years, following the pace of China's economic development, defense spending has indeed increased a little," said Liu Jianchao at the ministry's regular press conference. "But the bulk of this is for improving officers' and soldiers' living conditions. China has neither the intention nor the capability to drastically increase its military buildup."

Donald Rumsfeld had said during an international security conference in Singapore on Saturday that China was spending too much on a military buildup, risking an unbalanced military situation in the Asia-Pacific region.

"Since no nation threatens China, one wonders: Why this growing investment? Why these continuing large weapons purchases?" he had asked.

In fact, Liu said, compared with other major countries, China's military spending has always been low. "Last year, defense expenditure was 211.7 billion yuan (US$25 billion) and US military spending US$455.9 billion -- 17.8 times that of China."

"Any words or deeds that create and hype up a Chinese military threat are unfavorable to the peace and stability of the region and the world," he said, adding that China hoped the US would respect this and do more for the healthy development of Sino-US relations.

UN reform

Liu also reiterated that decisions over UN Security Council reform should be fully democratic and allow broad consensus.

Although member states have not yet reached a consensus, Germany, Japan, Brazil and India, the Group of Four, have proposed a draft resolution on Security Council expansion and are pushing for a vote on it. Such a move "is not conducive to the solidarity of UN members and runs counter to the original intention of UN reform," Liu said.

It is reported that the Group of Four will delay submission of the draft resolution on UN reform to the General Assembly until at least next month from the initially targeted June.

Economic aid cannot offset wartime past

Liu said Japan's economic assistance to other Asian countries cannot offset the harm it caused them in the past.

"Japan does not face up to history. It is trying to gloss over its past," he said in response to Japanese Foreign Minister Nobutaka Machimura's remarks on Monday.

Machimura called China's criticism of Japanese Prime Minister Junichiro Koizumi's visits to the Yasukuni Shrine "outrageous," and Japanese officials have complained China was ignoring Tokyo's economic assistance to developing countries.

The Yasukuni Shrine in Tokyo honors 14 convicted Class-A war criminals responsible for WWII atrocities along with all other of the country's war dead.

"Japanese leaders' worshiping at the Yasukuni Shrine constitutes a negation of Japan's history of aggression against other countries," said Liu.

He said that while it is good of Japan to offer development assistance, its "wartime past cannot be erased" with it.

US-DPRK officials' meeting welcomed

Liu said China welcomed Monday's meeting in New York between officials of the US and the Democratic People's Republic of Korea (DPRK).

The US was represented by Joseph DiTrani, US special envoy to the six-party talks, and Jim Foster, director of the State Department's Office of Korean Affairs. They conferred with DPRK officials on the resumption of six-party talks on the Korean Peninsula nuclear issue, following their working talks in New York on May 13.

"China always welcomes and encourages contacts between the US and DPRK, and is making efforts to promote their meeting." Liu said, adding that the meeting was quite "helpful."

"We should not lose hope for the settlement of the Korean Peninsula nuclear issue at any time," Liu said.

The six-party talks have been stalled since last June as the DPRK accused the US of adopting a hostile policy toward Pyongyang.

Liu called on all parties to keep patient and play a constructive role in promoting the early resumption of the new round of six-party talks.

China supports Pakistan, Iran, India becoming SCO observers

Liu said China welcomed and supported Pakistan, Iran and India in becoming observers in the Shanghai Cooperation Organization (SCO).

At a SCO foreign ministers' meeting held last Saturday in Astana, capital of Kazakhstan, SCO member states agreed in principle to give the three countries SCO observer status. The SCO will make a formal decision on the issue at a summit in Astana in July.

Liu said the three are influential in the region, and China believes it would further promote mutually beneficial cooperation.

Member state foreign ministers and vice foreign ministers attended Saturday's meeting, with the Mongolian foreign minister attending as an observer.

They discussed furthering cooperation and preparations for the forthcoming SCO summit, and exchanged views on other international and regional issues.

The SCO, set up in June 2001 to promote regional cooperation and fight terrorism, extremism and separatism, includes China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

Armenian foreign minister to visit

Liu announced that Armenian Foreign Minister Vardan Oskanyan will visit from June 12 to 14 at the invitation of Foreign Minister Li Zhaoxing.

(China Daily, Xinhua News Agency June 8, 2005)