The six-nation Shanghai Cooperation Organization, initially set up as a political alliance, took a step toward economic integration

The six-nation Shanghai Cooperation Organization, initially set up as a political alliance, took a step toward economic integration Tuesday with China proposing the creation of a central Asian free trade zone. The alliance, formed in Shanghai in 1996 and upgraded in 2001 to battle terrorism in the wake of the Sep. 11 attacks in the U.S., includes China, Russia and four central Asian nations - Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. China's Premier Wen Jiabao proposed the creation of a free-trade zone as a long-term objective during talks Tuesday with his five counterparts, the official Xinhua News Agency reported. In the lead-up to the creation of such a zone, Wen said the Shanghai Cooperation Organization should work together to streamline cross-border trade between the six nations by reducing red tape and non-tariff barriers. Wen also proposed greater cooperation between the six nations on major development projects, including transportation, energy and telecommunications. He urged the six nations to improve technical cooperation in industries such as agriculture, home appliances, light industry and textiles, the Xinhua report said. Russian Prime Minister Mikhail Kasyanov said the six documents signed during Tuesday's meeting marked the organization's shift from a political to an economic phase. "Our organization's initial phase has essentially come to an end," Kasyanov told reporters.