China provided its ideological ally Cuba 600 million dollars in loans and grants Wednesday during a visit to strengthen ties by the Asian giant's parliamentary head Wu Bangguo, diplomatic sources said.

Wu, the second most powerful man in China's ruling Communist Party, arrived Tuesday night on the communist-ruled island for a three-day visit.

He and Cuban parliamentary chief Ricardo Alarcon oversaw the signing of a series of agreements, including for a loan worth 260 million dollars for the purchase of 10 grain shipments, as well as a 300-million-dollar loan to help improve Cuba's telecommunications network.

A Chinese credit also will be invested in Cuban television, a spokesman of China's diplomatic mission told AFP, without specifying the amount.

In addition, Beijing donated nine million dollars, offered an official credit in the same amount, and provided a one-million-dollar preferential line of credit, all for investment in projects determined by Cuba's government.

The two nations also broadened cooperation in areas such as traffic signal systems, agriculture and animal husbandry.

Wu is to hold talks with senior Cuban officials, and meetings have not been ruled out with President Raul Castro and Fidel Castro, the revolutionary icon who handed the presidential reins to his younger brother last year.

The visit coincides with a trip to Asia by Cuban Foreign Minister Bruno Rodriguez, who was in Beijing on Wednesday.

China is a vital source of funding for Cuba, and is its second largest trading partner after Venezuela, with annual bilateral trade reaching about 2.6 billion dollars.

Source: AFP