The Hindu : India announces $10m credit line for Cambodia, Laos

Online edition of India's National Newspaper
Thursday, Nov 07, 2002

International

International

India announces $10m credit line for Cambodia, Laos

Vientiane (Laos) Nov. 6. In a clear commitment to help lesser-developed ASEAN countries, India today announced a $10 million Line of Credit each for Cambodia and Laos on exceptionally preferential terms and signed a host of other agreements to boost trade and defence cooperation with the two South-East Asian countries.

The accords on the Lines of Credit were signed after the Prime Minister, Atal Behari Vajpayee, held wide-ranging talks with his Cambodian and Laotian counterparts, Hun Sen and Bounnhang Vorachit, in Phnom Penh and Vientiane during the course of a day-long hectic schedule in the two countries. "Both the credit lines are on exceptionally preferential terms with low interest. These have been done keeping in view India's commitment to help both Cambodia and Laos to boost their economies," the Secretary in the External Affairs Ministry, R.M. Abhyankar, told presspersons.

Mr. Vajpayee reached here this afternoon on a two-day visit from Phnom Penh after attending a meeting of the first India-ASEAN Summit in the Cambodian capital. This is the first visit by an Indian Prime Minister to Laos in over 45 years. Jawaharlal Nehru had visited the South-East country in 1954.

Besides the credit lines, the repayment of which is spread over 25 years with a grace period of five years, agreements were signed with Cambodia in Phnom Penh for enhancing trade, carrying out restoration of the 1,000-year-old Ta Prohm temple in the world-famous Angkor Vat complex and extending cooperation in technical education.

Mr. Abhyankar said the loans would help boost Indian investments in the two countries to bring them on a par economically with other members of 10-member ASEAN, which has declared its intention of working towards establishing a free trade area with India.

Four agreements were also signed between India and Laos. The countries would cooperate in combating trafficking of drugs and psychotropic substances, have cooperation in the defence sector and waive visas for those holding diplomatic and official passports. On the defence front, India kept its commitment by handing over parachutes and agreed to supply computers and broaden the personnel training arrangement. A consignment of jeeps and trucks for the Laotian armed forces, which would be manufactured by the Tata group, would be delivered soon. The agreements on the credit lines take care of the requirements specified under the WTO.

According to the accord on the Ta Prohm temple, situated in the Cambodian city of Seam Reap, India would provide Rs. 25 crores to restore the 11th century temple, which was initially dedicated to Lord Brahma and is now a Buddhist place of worship. The "difficult" restoration work would take about a decade and be carried out by the Archaeological Survey of India. India had successfully restored the Angkor Vat temple after undertaking a similar exercise in 1987.

Mr. Abhyankar said that Laos supported India's candidature for a permanent seat in the United Nations Security Council.

The agreements with Cambodia and Laos assume significance as Phnom Penh is the current chairman of ASEAN, and Vientiane would assume the post in 2004.

During the talks with the Laotian Premier, Mr. Vajpayee agreed to extend cooperation in setting-up a speciality hospital and in upgrading facilities at the Vientiane airport. Mr. Vajpayee had to fly to Phnom Penh and Vientiane in a smaller Airbus A-320 aircraft as the runways there could not accommodate an Air India Boeing 747, which the Prime Minister uses while travelling abroad.

Mr. Abhyankar said Mr. Vajpayee's appreciation of Laos' cash gift of $50,000 during last year's earthquake in Gujarat struck a "receptive chord" during talks with his counterpart here.

Both Cambodia and Laos stressed on the need for Ministerial and official-level exchanges with India to continue enhanced cooperation in various fields.

Mr. Vorachit also hosted a banquet in Mr. Vajpayee's honour, which was attended by the External Affairs Minister, Yashwant Sinha, the National Security Adviser, Brajesh Mishra, and India's Ambassador to Vientiane, among others. — PTI

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