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Chen Liangyu, secretary of the Shanghai Municipal Committee of Communist Party of China (CPC), met on Monday with the Chinese Kuomintang (KMT) Party Honorary Chairman Lien Chan.

Chen, also member of the Political Bureau of the CPC Central Committee, extended a warm welcome to Lien, who arrived in the eastern metropolis on Monday noon after his two-day visit to the eastern province of Zhejiang.

Chen congratulated on the successful holding of the Cross-Strait Economic and Trade Forum which ended on April 15 in Beijing.

In its latest move to promote trade and economic cooperation across the Taiwan Straits, the mainland announced 15 new policies to benefit Taiwan compatriots at the forum.

The preferential policies will greatly promote the development of cross-Straits relations as well as form closer economic ties between Shanghai and Taiwan, said Chen.

"Taiwan compatriots have made a great contribution to the development of Shanghai, and Shanghai has played a significant role in promoting across-Straits exchanges and economic cooperation," said Chen.

Shanghai will try its best to create a sound environment on the investment, work and study for Taiwan people and to protect their rights and interests here, said Chen.

Lien Chan said he was grateful to the hospitality of the Shanghai municipal government and people here.

The mainland's preferential policies have been well received by Taiwan and more Taiwan residents will be able to expend their business in Shanghai, which will bring a brighter future for cooperation between Taiwan and Shanghai, said Lien.

Before his meeting with Chen Liangyu, Lien and his wife Lien Fang-yu, visited the Yangshan Deepwater Port in Shanghai, a mega-port project on the East China Sea, on Monday afternoon.

Lien arrived in Beijing on April 13 to attend the Cross-Strait Economic and Trade Forum.

(Xinhua News Agency April 25, 2006)