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Finance Minister Xie Xuren and his Japanese counterpart Fukushiro Nukaga have agreed to work jointly to end the controversy created by allegedly contaminated China-made dumplings.Chinese Finance Minister Xie Xuren (L) shakes hands with Japan's Finance Minister Fukushiro Nukaga at the latter's office in Tokyo, February 10, 2008. [Xinhua]At the first-ever ministerial-level meeting since the food scare in Japan, the two ministers vowed to "keep searching for the real cause" that made 10 people fall ill after eating the dumplings."We must cooperate in the investigation to get to the root of the problem and to prevent such an incident so that it doesn't become an obstacle to our friendship," Nukaga told reporters in Tokyo yesterday. "And he (Xie) said he completely agreed (with the idea)."The two also agreed to hold another dialogue next month in Tokyo. Xie was in Japan to attend expanded discussions and meetings of the Group of Seven financial ministers. Representatives of Russia, South Korea and Indonesia were also invited to the deliberations.The ministerial-level meeting came four days after Lunar New Year's Eve, when Chinese and Japanese officials met in Tokyo and said they were ready to cooperate in the investigation.China is willing to fully cooperate and share information with Japan, Li Chunfeng, head of the five-member Chinese delegation, told reporters after the third round of talks at the Japanese Cabinet Office on February 6.The country had set up a joint investigation team with Japan to get to the truth as soon as possible, Li said, calling for an objective attitude and scientific measures to solve the problem.A joint investigation team that on Tuesday inspected the plant of Tianyang Food, which made the dumplings, did not find any "abnormality" with the production process."The plant (in Shijiazhuang, capital of Hebei) is very clean and well managed, and no abnormality was detected," Japanese delegation chief Harashima Taiji said on Wednesday.Chinese and Japanese journalists, too, visited the plant, where production was suspended on January 30. The plant employs about 800 people.Also on Wednesday, Japanese Health Minister Yoichi Masuzoe said someone could have deliberately tried to contaminate the dumplings."Judging from circumstantial evidence, we'd have to think that it's highly likely to be a crime," Masuzoe said in Tokyo.Chinese police and law enforcers in Japan's Hyogo prefecture, where the 10 people fell ill, have already set up a joint task force to probe the case.In a joint announcement, Hyogo police said that after finding large amounts of the pesticide methamidophos on and small holes in some of the dumpling packages they suspected someone deliberately tried to poison the product.Tianyang reiterated it has never used methamidophos and that the dumplings were always packed immediately after coming off the production line.China Daily - Agencies

The Ministry of Agriculture on Monday confirmed a bird flu outbreak in South China's Guangzhou, which began with the mass deaths of ducks on September 5.The outbreak was confirmed as a sub-type of H5N1 bird flu by the National Avian Influenza Reference Laboratory, according to the ministry.It said 36,130 ducks had been culled as of September 17, after farmers in Sixian Village and Xinzao Township in the Panyu district of Guangzhou reported the deaths of their ducks on September 5.The agriculture ministry and the Guangdong provincial government immediately implemented an emergency plan to deal with the outbreak and the ministry said the outbreak has been brought under control.It also said no further deaths of fowl have been reported in the Panyu district or nearby areas.The last reported case of H5N1 bird flu in China occurred on May 19 at Shijiping Village in Yiyang City of Hunan Province, which killed more than 11,000 poultry with another 52,800 birds culled.China has reported a total of 25 human cases of bird flu since 2003, which have resulted in 16 deaths.

WUHAN -- The rainstorm and floods have killed 68 people and 25 others were missing in central China's Hubei Province since the flood season began in June, according to local government. Another 402,200 people have been evacuated from affected areas, said Liu Hui, deputy head of the disaster relief office under the provincial civil affairs department at a press conference on Sunday afternoon. Hubei, which is also called "the province of thousands of lakes", has experienced six major rainstorms since June, which have triggered floods in more than 2,000 rivers, mountain torrents and landslides, causing an economic loss of more than 3,800 million yuan, said Liu. The central and local governments had allocated more than 90.5 million yuan of relief fund to the affected areas and all the evacuated people have been well accommodated, said Liu. "The evacuated residents have been arranged to live in tents, government buildings, schools or at their relatives and local governments have sent medical teams to treat the injured," said Liu. The official with the provincial flood control office warned local government of preparing for new floods as heavy rainstorms were said to hit Hubei from Tuesday to Friday. "Although the large rivers, like the Yangtze and the Hanjiang Rivers, remain calm so far, the water level of 2,000 rivers of smaller size have risen dramatically, posing a serious threat to the flood control in the counties where the dams are poorly maintained," said Guo Zhigao, deputy director of the provincial flood control office. In addition, most of the reservoirs in Hubei have used out its capacity and some were even reported with leakage and overflow, according to Guo. More than 90,000 people have been patrolling on the dams and around the reservoir and residents nearby have been asked to evacuated to safe places. (One U.S. dollar equals 7.6 yuan)

China, with a record .2 trillion of foreign-exchange reserves, will keep the "bulk" of its US dollar holdings because the currency is one of safest investment options, a People's Bank of China assistant governor said. The dollar remains "important" because trade and foreign direct investment is conducted mostly in the currency, Yi Gang told delegates at a meeting that was closed to the media at the World Economic Forum in Singapore. Asian central banks will continue to hold most of their reserves in dollars, he said. "Safety, return and liquidity are the three most important elements that people should consider when they talk about reserves," Yi said in a recording of the discussion that was obtained by Bloomberg News. "As far as we're concerned, the serious reduction of the dollar reserve is a small probability," he said, adding that any adjustments to its dollar holdings will be "incremental." China's gross domestic product expanded 11.1 percent in the first quarter, making it the world's fastest-growing major economy, led by sustained demand for its exports to the US and other trading partners. Diversification of the nation's foreign-exchange reserves will be gradual and won't hurt the dollar or financial markets, Market News International said last month, citing Ding Zhijie, one of five advisers to the reserves agency's committee. 'Gradual Process' China's trade surplus, which the Asian Development Bank estimated will climb by 45 percent to a record 7 billion next year, has sparked calls for further gains in China's yuan. Some US lawmakers have said that the yuan was undervalued by 40 percent to make China's exports cheap and pledged trade sanctions as punishment. The central bank expects the yuan exchange rate will gradually move toward a "market-oriented direction," Yi told reporters after the meeting Monday. The currency has risen about 8.6 percent since the dollar link was abandoned in July 2005. "The central bank of China has the responsibility to keep the exchange rate at more or less a stable level," Yi said. "The mechanism is more toward a market-oriented direction."