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¡¡¡¡Chinese president Jiang Zeming who is currently on a state visit to Italy held a formal talk with Italian president on 22nd at the presidential palace. President Jiang pointed out that although Italy and China are geographically far away from each other and important differences exist in their respective social systems, cultural traditions, and the levels of economic development, the two countries have so far maintained a very friendly bilateral relationship. At present, the cooperation between the two countries has been expanding in terms of both the depth and the width, Italy being an important trade partner of China in Europe. The economies of both countries are characterized by strong complementarity and there is tremendous potential for both countries to undertake economic and trade cooperation. The Chinese government support and encourage Chinese business communities to conduct more contacts with their Italian counterparts so as to make the economic and commercial cooperation between the two countries more constructive and fruitful.

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¡¡¡¡The Reagan administration's most serious foreign policy problem surfaced near the end of the president's second term. In 1987 Americans learned that the administration had secretly sold arms to Iran in an attempt to win freedom for American hostages held in Lebanon by radical organizations controlled by Iran's Khomeini government. Investigation also revealed that funds from the arms sales had been diverted to the Nicaraguan contras during a period when Congress had prohibited such military aid.

¡¡¡¡The ensuing Iran-contra hearings before a joint House-Senate committee examined issues of possible illegality as well as the broader question of defining American foreign policy interests in the Middle East and Central America. In a larger sense, the Iran-contra hearings, like the celebrated Senate Watergate hearings 14 years earlier, addressed fundamental questions about the government's accountability to the public, and the proper balance between the executive and legislative branches of government.

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