China and Kyrgyzstan, two members of the Shanghai Co-operation Organization (SCO), signed a joint declaration on Friday, pledging to strengthen co-operation on border control and security to further consolidate bilateral ties.

President Hu Jintao and his Kyrgyz counterpart Kurmanbek Bakiyev made the deal after an hour's meeting in the Great Hall of the People in downtown Beijing.

Hu said China is willing to join hands with Kyrgyzstan to continue to fight against the three forces terrorism, extremism and separatism to maintain regional peace and stability.

The two countries signed a series of documents to this effect and set up a mechanism for co-operation.

The two leaders also vowed to crack down on all forms of terrorism including East Turkistan terrorist forces under the SCO multilateral mechanism.

Besides anti-terrorism, China and Kyrgyzstan also see common ground in advancing the substantive co-operation and sealed another 13 accords in the fields of economy and technology, intellectual property protection, education, sports and loans.

The China CAMC Engineering Company sealed a deal with a Kyrgyz counterpart to build a cement factory with 2,500 tons of daily production, the first commercial deal under the US$900 million loan from China to SCO member states.

According to Ren Hongbin, president of the China National Machinery Industry Corporation, the project is worth US$77.8 million.

China has offered SCO member states US$900 million worth of loans in the form of preferential buyers' credit for members who buy Chinese exports. China would offer favourable conditions on these loans.

Kyrgyz President Kurmanbek Bakiyev also held talks with Premier Wen Jiabao and top legislator Wu Bangguo earlier on Friday afternoon.

He will attend the China-Kyrgyz business forum and visit the compound of the China CAMC Engineering Company on Saturday morning before returning to Kyrgyzstan in the afternoon.

He is scheduled to return to China next Thursday to attend the SCO summit meeting, which will be held in Shanghai.