Chinese Premier Wen Jiabao says Australian uranium will only be used for peaceful purposes. (file photo) (Reuters) 
Prime Minister John Howard and Chinese Premier Wen Jiabao have witnessed the signing of a nuclear safeguards agreement between the two nations.
The pact clears the way for the Australian uranium industry to export to China.
Mr Howard says he is happy with the terms of the nuclear agreement.
"I am satisfied that the safeguards that are there will be enforced," he said.
The agreement will ensure that Australian uranium is only sold to electricity companies and there are international inspections of Chinese nuclear facilities.
Speaking through a translator, the Chinese leader emphasised the uranium would not be used for military purposes.
"China and Australia are conducting nuclear co-operation and this is solely for peaceful purposes," he said.
It is understood China wants to import around 20,000 tonnes of uranium, about double Australia's current production.
Mr Wen says the relationship between Australia and China has never been better.
"I feel that China-Australia relations have never been as good as they are today," he said through an interpreter.
"There are no issues left over from history and there are no cultural matters standing in the way of our bilateral relations."
Mr Howard told the Chinese leader that the bilateral relationship has changed dramatically.
"This is a very important visit and you and I have had a very good discussion and I made the comment at the beginning that of all the important relationships Australia has with other countries, none has been more greatly transformed over the last 10 years than our relationship with China," he said.
