China for projects in Mekong basin

By Amit Baruah

SINGAPORE, NOV. 26. China has expressed interest in getting involved in the transport sector in Indo-China, precisely the area of cooperation agreed to by the six-nation Mekong-Ganga Cooperation (MGC) launched by India, Myanmar, Thailand, Laos, Cambodia and Vietnam, earlier this month.

``In the new century, China will enter a new stage of developing a well-to-do society in an all-round manner and accelerating the modernisation drive. To achieve this grand objective that we have set for us, we need a surrounding environment conducive to stability and development,'' the Chinese premier, Mr. Zhu Rongji, said at the ASEAN+China meeting yesterday.

Making it clear that China was interested in actively promoting the development of infrastructure projects in the Mekong river basin, he said this should focus on transportation, environmental protection and tourism.

``Last April, China, Laos, Myanmar and Thailand signed the Agreement on Commercial Navigation on Lancang-Mekong River. China has harnessed all the navigation courses in its territory in preparation for navigation by the four countries. The Chinese side will also fund the dredging of the navigational course in Lao and Myanmar territories to ensure early realisation of navigation along the Lancang-Mekong river,'' the Chinese leader said.

Stressing that the highway between Kunming (China) and Bangkok was an important link between the ASEAN and China, Mr. Zhu said the completion of this project would promote trade and cooperation.

``When conditions are ripe, China will undertake to build the part of the highway in the Lao territory in cooperation with Laos, Thailand and the Asian Development Bank so as to ensure early completion of Kunming-Bangkok highway,'' he said.

The Vientiane declaration, issued by the six-nation MGC, also refers to the need to ``deploy efforts to develop transportation networks in the region in particular the East-West corridor project and the Trans-Asian Highway''.

While the Chinese appear to understand the region better and clearly have the resources to commit themselves to such infrastructure projects, it remains to be seen whether the MGC initiative will be a serious one which can implement the promises made in the Vientiane declaration.

Indian officials have referred to the possibility of raising multilateral finance for the highway project, which is hardly a new idea. Given the direct announcements made by the Chinese premier, it is apparent that Beijing is serious about its commitment to the region and its development.

On Malaysia's proposal for a Trans-Asia Railway, Mr. Zhu said this project, once completed, might be linked to the Eurasian ``land bridge'' in the Chinese territory, thus forming an international thoroughfare which would link all countries on the route and would be open to all of them. ``China supports the building of such a railway and wishes to participate in its construction through bidding.''

Referring to the $31.96 billion trade between China and the ASEAN in the first 10 months of this year, Mr. Zhu said this was 47.9 per cent higher than what was registered during the same period last year.

``The ever-closer economic cooperation and trade between China and the ASEAN make it necessary for both sides to further facilitate an unfettered exchange of goods, technologies, capital and information. It might be advisable in the long run for China and ASEAN countries to explore the establishment of a free trade relationship between them.''

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Section  : International
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