Beijing - A memorandum of understanding (mou) was inked here late Friday between Iran's Khuzestan province and china's Shandong province.

The mou was signed by Iranian ambassador to china Fereydoun Verdinejad and the director general of Shandong province's foreign affairs department, Jang Wei Ling.

Based on the agreement, the two sides will cooperate in the agricultural and industrial fields as well as in the exchange of technology and agricultural products including participation of Shandong oil and petrochemical companies in Iranian projects.

The provinces will also exchange delegations in order to boost mutual ties and be familiarized with the other side's capabilities.

During the session, Verdinejad expressed the hope that the two countries will meet the mou's objectives. The Chinese official, for her part, announced the Chinese province's readiness to expand ties with the Iranian side.The first Chinese delegation will visit Khuzestan province anytime between September 23-october 22, 2002