UPDATE 1-China, France agree to repair damaged ties

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BEIJING, April 1 (Reuters) - China and France agreed on Wednesday to repair ties damaged after a series of recent spats, including over Tibet, with both pledging high-level talks and cooperation to tackle the global financial crisis.

Bilateral relations began deteriorating after the disruption of the Paris leg of the Olympic torch relay last summer by pro-Tibet activists. China has ruled Tibet with an iron hand since its troops marched into the region in 1950.

Further incidents, including Paris' decision to make Tibet's spiritual leader, the Dalai Lama, an honorary citizen, have fuelled tensions and led to sporadic boycotts of French firms operating in China such as retailer Carrefour (CARR.PA).

"Both sides reaffirm the high importance of Sino-French relations and are willing to strengthen the all-round strategic partnership on the basis of mutual respect and paying attention to each sides basic interests," said a joint statement carried on the website of China's Foreign Ministry (www.fmprc.gov.cn).

The document was issued by both countries' foreign ministries and agreed upon after many rounds of talks, it added.

It said that France "fully understands" the importance and sensitivity of the Tibet question, and recognises that Tibet is an inseparable part of Chinese territory.

"On the basis of this spirit and the principle of not interfering in internal affairs, France refuses to support any kind of 'Tibet independence'," the statement said.

"Both sides are willing to strengthen communication and coordination, to jointly deal with the global challenge of the international financial crisis," it added.