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Mr Putin and Mr Schroeder discussed bilateral economic cooperation and ways to boost it, as well as relevant international issues of mutual concern, such as the situation in Iraq.

The unilateral use of military force against Iraq would only bring suffering to millions of people and would further escalate tensions in the region, warned President Putin at the end of his meeting with Chancellor Schroeder.

Russia, Germany and France see eye to eye on the issue, said Mr Putin. All the three states believe there can be no military solution to the Iraqi conflict. Bringing pressure to bear on Iraq may help, but all related decisions must be based on the evidence provided by international inspectors. Most of the UN Security Council members, including China, have a similar stance on the issue, he said.

On the other hand, the President spoke against stoking up anti-American sentiment in protest of the U.S. militant position vis-a-vis Iraq.

The Russian President thanked the German leadership for their assistance in renovating the St Petersburg Philharmonic’s organ to mark the city’s 300th anniversary. He also said he was hopeful that the German Chancellor would join him in unveiling the newly refurbished Amber Room in a St Petersburg suburb in May 2003.

Mr Putin and Mr Schroeder drew up a schedule of meetings for the year ahead. They planned to meet four times in 2003. Two meetings will take place in St Petersburg to mark the city’s 300th anniversary and an anniversary of Siemens’ presence on the Russian market. The Presidents will also see each other at a G8 summit and will meet in Yekaterinburg for bilateral talks.