China Prepares to Provide Loans of US$55 Million to Cambodia

Posted on 2 February 2008.

The Mirror, Vol. 12, No. 545

“Phnom Penh: The government of the People’s Republic of China prepares to provide low-interest loans of US$55 million to Cambodia, while China will allow Cambodia to export an extra number of goods into China without collecting taxes on them. This was announced by Mr. Yang Jiechi, the Chinese foreign minister, as he met to discuss in the afternoon of 1 February with his counterpart, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Mr. Hor Namhong.

“After both sides discussed for approximately half an hour, the Cambodian and the Chinese foreign ministers held a joint press conference.

“Deputy Prime Minister Hor Namhong said that he considered the present tour of the delegation, led by the Chinese foreign minister to Cambodia, as the first top-level visit from the People’s Republic of China to Cambodia during the 50th anniversary celebrations of diplomatic relations between the two countries.

“Both sides agreed, in view of the long-term good friendship and the active and fruitful cooperation between the two countries, which have been established by the former Father King Norodom Sihanouk and other persons of top-ranking leadership until now, there are now also His Majesty Norodom Sihamoni, the King of the Kingdom of Cambodia, and Samdech Akak Moha Senapadei Dekchor Hun Sen, the Prime Minister of the Kingdom of Cambodia, who are the successors to further strengthen the relation between the two countries.

“Deputy Prime Minister Hor Namhong informed the Chinese side about the current situation in Cambodia, about politics and the economy, which show improvements in all the sectors, while Cambodia is experiencing a high rate of economic growth. This growth cannot be seen without relation to the assistance received from the Chinese people and the Chinese government. Taking the opportunity, Deputy Prime Minister Hor Namhong profoundly thanked the Chinese people and government for providing Cambodia with a lot of assistances in all sectors.

“Deputy Prime Minister Hor Namhong said, ‘We have agreed that China’s investment in the hydropower sector, worth nearly US$1 billion, is very important for the development of the economy and for investments in Cambodia.’

“He added, ‘We have also agreed that both ministries of foreign affairs would hold meetings frequently and regularly to support the cooperation in all sectors, including on the international stage.’

“Mr. Yang Jiechi also thanked and highly evaluated the Cambodian government for always supporting the One-China Policy of the People’s Republic of China, and for strongly protesting against acts calling for the independence of Taiwan, using the trick to ask for membership in the United Nations.

“Deputy Prime Minister Hor Namhong confirmed that the Cambodian government still considers the island of Taiwan as a province of the People’s Republic of China, and this province cannot be separated from China, even though some tricks are attempted to do so. He further stated that past tricks of Taiwan, and eventual future tricks, cannot cause dangers in the region.
“Particularly in relation to the development of the Cambodian economy, Mr. Yang Jiechi continued to support the investment in hydropower in Cambodia, also encouraging many more Chinese tourists to visit Cambodia, and China will make preparations to provide for more duty-free arrangements for goods coming from Cambodia. Nowadays, the Chinese side provides such arrangements for more than 400 items from Cambodia being exported to China without paying import tax.

“According to Deputy Prime Minister Hor Namhong, the Chinese side provided Cambodia in the past years with low-interest loans of US$300 million for the construction of infrastructure, and with these loans, Cambodia built two bridges and four sections of national roads.

“Mr. Yang Jiechi stated that China is prepared to grant Cambodia further loans of US$55 million, to build the road from O Pong Man, Steung Treng, to Ban Lung, Ratanakiri, after the completion of National Road 7 towards the Lao border.

“Mr. Yang Jiechi expressed the hope that both countries of Cambodia and China would continue to improve their friendly relation and their cooperation, and China always supports Cambodia’s role on the international stage.

“Availing himself of the opportunity, Mr. Yang Jiechi invited Deputy Prime Minister Hor Namhong to pay a formal visit again to the People’s Republic of China soon in 2008.

“It should be noted that in the morning of 1 February, Mr. Yang Jiechi was granted an audience with His Majesty Norodom Sihamoni, the King of the Kingdom of Cambodia, and in the afternoon the Chinese foreign minister was also granted an audience with Samdech Akak Moha Senapadei Dekchor Hun Sen, the Prime Minister of the Kingdom of Cambodia.

“Mr. Yang Jiechi arrived in Phnom Penh in the evening of 31 January, and he will conclude his formal visit to Cambodia in the morning of 2 February, leaving for China by a special flight.”

Rasmei Kampuchea, Vol. 16, #4505, 2.2.2008