US President George W. Bush said Saturday morning (local time) he expected to continue close work with Chinese President Hu Jintao on peace and prosperity for the two countries as well as the whole world.

"… We did commit to make sure our relationship is healthy and strong," Bush said in a brief meeting with the press after his talks with President Hu on the sidelines of the 12th Asia Pacific Economic Cooperation (APEC) Economic Leaders Meeting, which is being held in Santiago, the Chilean capital.

President Hu said he re-offered congratulations to Bush on his re-election, and looked forward to working with President Bush for stronger coordination and cooperation between the two countries.

The summit, lasting less than an hour under tight security, was their first face-to-face meeting since Bush won the US presidential re-election earlier this month.  

"We agree that the second term of President Bush will be an important period for continued development of China-US relations," Hu said.

The Chinese president pledged anew that China will move to flexible exchange rates that reflects market demands. China has tied its currency, the yuan, at a fixed rate to the dollar.

Bush told reporters: "… I look forward to working with him over the next four years to continue our close work on keeping peace, peace on the Korean Peninsula and peace throughout the Pacific region, and to spread peace throughout the world."

On the nuclear issue on the Korean Peninsula, Hu said both sides expressed the hope the issue can be solved peacefully through dialogue.

"What's very important is for the leader of the North Korea to understand that the six-party talks will be the framework in which we continue to discuss the mutual goal we all have, which is to rid the Korean Peninsula of nuclear weapons," Bush said.

Both Bush and the Chinese leader, Hu, expressed a commitment to success.

"I look forward to working with him over the next four years to continue our close work on keeping the peace - peace in the Korean peninsula, peace throughout the Pacific region and spreading peace throughout the world," Bush said.

"Both sides expressed the hope that the issue will be solved peacefully through dialogue," Hu agreed.

Hu added: "We are also committed to stronger coordination and co-operation between the two countries on economic matters and in terrorism, as well as important international and regional issues." 

The two presidents also exchanged views on the question of Taiwan.

"I expressed my high appreciation to President Bush's adherence to the one-China policy and the three communiqués, and to his opposition to Taiwan independence," Hu said.

In reviewing bilateral ties over Bush's first term, Hu said: "We expressed satisfaction over the positive programmes made in a constructive and cooperative relationship between the two countries."

Bush said he had talked with President Hu about how they will work over the next four years to continue to spread prosperity to both people, to make sure the relationship is fair and equitable on both sides.

Hu and Bush exchanged invitations for visits to each other's country.