[Title] DECLARATION ON THE ESTABLISHMENT OF THE SHANGHAI COOPERATION ORGANIZATION

The heads of state of the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan,

Highly assessing the positive role played by the Shanghai Five during the five years of its existence in promoting and intensifying relations of goodneighborliness, mutual trust and friendship between the participating states, strengthening security and stability in the region, and facilitating collective development,

Unanimously believing that the establishment and development of the Shanghai Five was in line with the needs of mankind and the historic trend towards peace and development in the conditions prevailing after the end of the cold war, revealed the enormous potential of good-neighborliness, unity and cooperation through mutual respect and mutual trust between the states belonging to different civilizations and having various cultural traditions,

Particularly noting that the agreements on confidence-building in the military field and on the mutual reduction of armed forces in the border area signed in 1996 and 1997 in Shanghai and Moscow respectively by the heads of the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan, as well as the final documents signed during the meetings in Alma-Ata (1998), Bishkek (1999) and Dushanbe (2000), made an important contribution to the maintenance of peace, security and stability in the region and around the world, greatly enriched the practice of modern diplomacy and regional cooperation, and had a profound and positive impact on the international community,

Being firmly convinced that in the environment of dynamic development of processes of political multipolarity and economic and information globalization in the 21st century, upgrading the Shanghai Five" mechanism to a higher level of cooperation will help in making more effective use of emerging possibilities and addressing new challenges and threats,

Solemnly declare the following:

1. The Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan hereby establish the Shanghai Cooperation Organization.

2. The Shanghai Cooperation Organization aims at: strengthening mutual trust, friendship and good neighborliness between the member states; encouraging effective cooperation between them in the political, trade, economic, scientific, technical, cultural, educational, energy, transport, environmental and other fields; making joint efforts to maintain and ensure peace, security and stability in the region and establishing new, democratic, just and rational international political and economic order.

3. In the framework of the Shanghai Cooperation Organization, annual official meeting of the heads of state and regular meetings of the heads of government of the member states shall be held alternately in each of the member states. In order to expand and intensify cooperation in all fields, new mechanisms may be established, as appropriate, in addition to the existing mechanisms of the meetings of the heads of the relevant departments, and also permanent and temporary expert working groups may be formed to study plans and proposals on further development of cooperation established.

4. The "Shanghai Spirit" formed in the process of the Shanghai Five development, described by mutual trust, mutual benefit, equality, joint consultations, respect for cultural diversity and aspiration for collective development, is an invaluable asset gained by the countries of the region over the years of cooperation. It will grow and in the new century will become a norm in relations among the states members of the Shanghai Cooperation Organization.

5. The states members of the Shanghai Cooperation Organization firmly adhere to the purposes and principles of the United Nations Charter, principles of mutual respect for independence, sovereignty and territorial integrity, equality and mutual benefit, resolution of all issues through mutual consultations, non-interference in internal affairs, non-use or threat of use of military force, and renunciation of unilateral military superiority in neighboring areas.

6. The Shanghai Cooperation Organization has been established on the basis of the agreements on confidence-building in the military field and on the mutual reduction of armed forces in the border area signed in 1996 and 1997 in Shanghai and Moscow respectively. Cooperation within its framework is already under way in political, trade, economic, cultural, scientific, technical and other areas. The principles embodied in the aforementioned agreements define the basis for relations between the states members of the Shanghai Cooperation Organization.

7. The Shanghai Cooperation Organization is not an alliance directed against other states and regions, and it adheres to the principle of openness. It declares its readiness to develop dialogue, contacts and cooperation of all kinds with other states and relevant international and regional organizations, and on the basis of consensus admit as new members states that share the objectives and goals of cooperation in the framework of the organization, and the principles set forth in paragraph 6 and also other provisions of this Declaration and whose admission may contribute to such cooperation.

8. The Shanghai Cooperation Organization attaches priority to regional security and it takes all necessary efforts to maintain it. The member states shall closely cooperate in order to implement the Shanghai Convention on Combating Terrorism, Separatism and Extremism, including through the establishment of a regional anti-terrorist structure of the Shanghai Cooperation Organization with headquarters located in Bishkek. In addition, appropriate multilateral documents will be developed on cooperation in curbing illicit trafficking in arms and narcotic drugs, illegal migration and other types of criminal activity.

9. The Shanghai Cooperation Organization employs the enormous potential and broad possibilities of mutually beneficial cooperation of the member states in the area of trade and economy, and it makes efforts to promote further development of co-operation and diversification of the types of such cooperation among member states at bilateral and multilateral level. To this end, in the Shanghai Cooperation Organization's framework, a negotiation process will be launched on the issues related to establishing favorable conditions for trade and investment, and a longterm program of multilateral trade and economic cooperation will be developed, as also relevant documents will be signed.

10. The states members of the Shanghai Cooperation Organization strengthen the consultation mechanism and coordinate actions on regional and international issues, provide mutual support and develop close cooperation on major international and regional issues, and jointly promote peace and stability in the region and around the world, believing that maintaining global strategic balance and stability in the current international situation is of particular significance.

11. In order to coordinate cooperation and organize interaction between the competent ministries and departments of the states members of the Shanghai Cooperation Organization, a Council of National Coordinators of the member states is hereby established. The activities of this Council are governed by the provisional statute approved by the ministers of foreign affairs of the member states. The Council of National Coordinators is entrusted on the basis of this Declaration and the documents adopted earlier by the heads of state in the framework of the Shanghai Five, to proceed to drafting a Charter of the Shanghai Cooperation Organization that will contain clear provisions on the objectives, subject matter, goals and directions of future cooperation in the Shanghai cooperation organization's framework, principles and procedure for the admission of new members, legal force of its decisions and means of cooperation with other international organizations, and submit it for signature during the meeting of heads of state in 2002.

In summing up the experience of the past and assessing future prospects, the heads of the member states firmly believe that the establishment of the Shanghai Cooperation Organization signals the launch of the new stage in the development of cooperation among the member states and is in keeping with the trends of the modern era, realities of the region, and fundamental interests of the peoples of all the member states.

Shanghai, June 15, 2001