By Prak Chan, Reuters
PHNOM PENH -- China has pledged more than US$500 million in soft loans and grants to Cambodia and Prime Minister Wen Jiabao thanked it for helping Beijing maintain good relations with the regional grouping ASEAN, a Cambodian junior minister said.
A summit of the 10 members of
the Association of Southeast Asian Nations (ASEAN) in July failed to
issue a joint communique for the first time in the group's 45-year
history after disagreement over the wording of a section on territorial
claims in the South China Sea.
Cambodia,
which chairs ASEAN meetings this year, was accused by some countries in
the group of stonewalling in support of its ally, China.
The South China Sea has become
Asia's biggest potential military flashpoint. China's claim over the
huge area has in particular set it against ASEAN members Vietnam and the
Philippines.
Four loan agreements for
unspecified projects worth about US$420 million were signed when
Cambodian Prime Minister Hun Sen visited China over the weekend,
Secretary of State for Finance Aun Porn Moniroth told a briefing late on
Monday.
Another three loan agreements,
worth more than US$80 million, are expected to be signed this year, Aun
Porn Moniroth said, adding that Wen had also promised a grant of 150
million yuan (US$24 million) as “a gift” for Cambodia to use on any
priority project.
“The Chinese government also
voiced high appreciation for the part played by Cambodia as the chair of
ASEAN to maintain good cooperation between China and ASEAN,” Aun Porn
Moniroth said.
According to China's Xinhua News
Agency, Wen said China “will closely coordinate with Cambodia and
support the country to make the upcoming series of meetings for East
Asian leaders a success.” Those meeting are in Cambodia in November.
Chinese investment in Cambodia
totaled US$1.9 billion last year, more than double the combined
investment by ASEAN countries and 10 times more than the United States,
which is trying to extend its influence in the region.
Aun Porn Moniroth said Premier
Wen had given “positive consideration” to Hun Sen's proposal that China
provide new loans of between US$300 million to US$500 million per year
for the next five years for unspecified projects.
He also said a Chinese firm
planned to invest US$2 billion to build a steel plant in Cambodia
employing about 10,000 people and with the capacity to produce 3 million
tons of steel a year. He gave no details so it was not possible to
verify how far advanced the plans were.
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