4. Build cross-border infrastructure in order to facilitate international passenger and cargo traffic connecting China/Yunnan with Southeast Asia, including key projects such as the Kunming-Bangkok Highway, Pan-Asia Railway, and Lancang-Mekong River Waterway. Yunnan and Myanmar should take cooperation action to connect the Kunming-Rangoon road with the Irrawaddy River. The East Line of the Pan-Asia Railway in the East Line of the Pan-Asia Railway in Yunnan province (Yuxi-Hekon section) should be constructed as soon as possible. The preconstruction phase of the middle line of the Kunming-Bangkok and the western line of the Kunming-Dali-Baoshan-Mandalay Railways should be completed. Further improvements of the Lancang-Mekong waterway should also be undertaken and direct flights from Kunming to each of ASEAN countries started soon. Mean while, the higher-level road network of Yunnan province should be linked with its peripheral countries in 2007. Cross-border infrastructure also requires the full implementation of the Agreement on the Facilitation of Cross-border Movement of Goods and people, which not only covers the GMS transportation network but also “ software’’ requirements described below. In the process, Kunming would be transformed into a modernized international center of trade, investment and tourism.