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With the active contribution of the international community, the Royal Government of Cambodia (RGC) has achieved meaningful progress in its arduous task of reconstructing and rehabilitating the country that was materially and spiritually destroyed to its roots after 20 years of war and the genocidal regime of 1975-79. This progress is, of course, an encouraging sign for the international community to continue its assistance and |
Recently, Cambodia has been encouraged by the following actions from the international community:
On July 24-27, 1996 a delegation of Ambassadors of the European Union visited Cambodia. In recognition of the steady advances made by Cambodia, the delegation appealed for continued unconditional aid to Cambodia. In addition, an agreement was signed between the RGC and the European Commission providing $13.75 million in aid to Cambodia.
The First Consultative Group Meeting held in Tokyo on July 11-12, 1996 pledged US$500 million for 1996 as requested by the RGC. The participants expressed support for the RGC's policy and strategic planning in its "Public Investment Program 1996-1998".
The extension of full member status of ASEAN next year for the Kingdom of Cambodia was supported by all members of the Association of Southeast Asian Nations (ASEAN) and of the ASEAN Regional Forum (ARF) during the 29th ASEAN Ministerial Meeting (AMM) and the 3rd ASEAN Regional Forum in Indonesia on July 18-25, 1996.
The passage by the U.S. Senate of a bill granting Most Favored Nation (MFN) trade status to Cambodia is an essential factor not only in promoting progress in the economic field, but also in creating an environment favorable to continued improvements in human rights and democratic rule in Cambodia.
All these facts reflect a vote of confidence in the RGC and the progress made in Cambodia during the past three years. They constitute a great encouragement for Cambodia to continue on its road toward development, prosperity and democracy. The Cambodian government and people are deeply grateful for this show of confidence and support that gives us hope and optimism for the future of our motherland.
Signed Var Huoth
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On July 25, 1996 the US Senate passed the unconditional Most Favored Nation (MFN) trade status bill for Cambodia and returned it to the House of Representative for final approval. The bill will then be sent to the President for signature.
The statement contained in the bill said that :
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The news was warmly welcomed by the Cambodian government and people as well as by domestic and foreign businessmen.
The granting of MFN to Cambodia will benefit both Cambodia and the United States.
For Cambodia, MFN trading status, which would lower import duties on Cambodian products exported to the US from 80-90% to around 15-20%, will attract more and more businessmen interested in US markets to invest in producing in Cambodia, and thereby private investment will increase.
As a result of increased investment, a free-market economy and democracy will be stronger in Cambodia, more employment opportunities for Cambodians will be created, living standard of the people will be raised, and bilateral trade relations between Cambodia and the US will be promoted. Besides the strengthening of the Cambodian economy, MFN will also help counter the Khmer Rouge guerrillas.
In welcoming and thanking the passage by the US Senate of a bill granting Most Favored Nation trade status to the Kingdom of Cambodia, H.E. Samdech Hun Sen, Second Prime Minister of the Royal Government of Cambodia, has sent a letter to the US Senators, especially Senators Trent Lott, John McCain, Jesse Helms, Thomas A. Daschle, Charles Robb, Craig Thomas, Daniel Patrick Moynihan, Arlen Spector, William Roth, Claiborne Pell, Carol Moseley-Braun and Bob Graham. The letter reads as follows:
"I would like to express the heartfelt gratitude of the Cambodian people for your vote on 25 July 1996 in favor of granting most-favored nation status to the Kingdom of Cambodia.
I have the honor to inform you that this legislation is critical for Cambodia's national recovery and economic development, and your approval of MFN is a vote in favor of peace and progress. There can be no doubt that the "Real Winners" in your action last week are the Cambodian people. Increased investment will bring new employment opportunities for the citizens of this country and will improve their standard of living.
I am particularly pleased that you spurned the calls for restrictions and conditions in the legislation. Whatever problems Cambodia may have in these early days of democratic evolution, they cannot be solved by punishing the people. This would have been the result if obstacles had been created for foreign investment. However, you and your colleagues wisely rejected the counsel of those who oppose economic development in Cambodian and voted for the well-being of the people. We owe you a debt of gratitude for your vote of confidence in Cambodia's future.
Please be assured of my highest consideration."
Signed Hun Sen Second Prime Minister
Dear Cambodian Compatriots and American Friends,
On behalf of the Royal Embassy of Cambodia and in my own name, I take great pleasure in extending my profound gratitude to all Cambodian compatriots living in the United States as well as American friends for your indispensable and successful contribution in favor of the granting of unconditional MFN trading status to the Kingdom of Cambodia.
The success in getting MFN status is due to the joint effort of the Royal Government and the Royal Embassy in combination with the important contribution of the Cambodian community in the United States and all American friends, especially in writting and sending the US Representatives and Senators the letters and petitions urging unconditional MFN to Cambodia.
I am indeed profoundly grateful for and appreciative of this kind assistance. I firmly hope we can count on your future collaboration in helping Cambodia and in promoting the growth of bilateral relations in all fields between Cambodia and the United States.
Yours sincerely, Var Huoth Ambassador
The First Consultative Group Meeting for Cambodia, coordinated and co-chaired by the Japanese Government and the World Bank, was held in Tokyo, Japan on July 11-12, 1996, with the participation of 17 aid donor countries, 7 international organizations and agencies, and some non-governmental organizations (NGOs). The Cambodian delegation led by H.R.H Samdech Krom Preah Norodom Ranariddh, First Prime Minister, and H.E. Samdech Hun Sen, Second Prime Minister attended this meeting.
The meeting recognized the important achievements made by the Royal Government of Cambodia (RGC) in developing the country during the last few years. The meeting expressed support to the RGC's development policies and strategies and encouraged it to continue its reform programs, which aim at strengthening the foundation for the economic growth and the continuation of progress and solution of all issues being faced in Cambodia.
The RGC presented to the meeting its "Public Investment Program 1996-1998" which needs an amount of US$1.7 billion. For the year 1996, the RGC requested US$500-520 million. The meeting supported the RGC's program and pledged US$500 million to accomplish the task in 1996. This figure does not include the NGOs' direct contribution of about US$17 million for 1996.
The aid can only be pledged for 1996. Every donor country and international organization has their own strict laws and legal procedures to manage their budgets, and most of them have difficulties in clearly determining the size of aid that they can provide to Cambodia for a period longer than one year.
At the end of the meeting, the First Prime Minister, on behalf of the RGC, underscored that the aid pledges reflected the support and confidence of the donors to the RGC's Public Investment Program.
At the invitation of the Government of the People's Republic of China, Cambodian Second Prime Minister Samdech Hun Sen led a delegation of the Royal Government of Cambodia in a working visit to China from July 18-22.
Before leaving the Cambodian international airport, the Second Prime Minister told reporters that the visit had been planned well in advance and was aimed at "understanding each other, brotherhood and long cooperation and ... can end all the suspicion of the past between the two countries."
During his visit, the Second Prime Minister, accompanied by Deputy Prime Minister and Co-Minister of Interior Sar Kheng and the Ministers in charge of the Office of Council of Ministers, Finance, Defense, and Commerce, held high-level meetings with President Jian Zemin and Prime Minister Li Peng, signed agreements on trade and investment, and visited southern Hunan province and the booming city Shenzhen.
A 14-member delegation of the Ambassadors of the European Union (E.U.) visited Cambodia for the European Days from June 24 to June 27, 1996.
During this visit, an agreement between the Royal Government of Cambodia and the European Commission on the Complementary Plan of the European Program of Rehabilitation of Cambodia (PERC) was signed. According to the agreement, additional aid of $13.75 million will be granted by the European Commission for rural development, human rights, democracy, and environmental protection in Cambodia.
The delegation praised Cambodia for the great progress in establishing a responsible and democratic government after years of war, and urged that foreign aid to Cambodia not be pegged to progress on human rights and democracy. The leader of the delegation, Italian Ambassador Leopoldo Ferri de Lazara, said:
"We have to see the Cambodian situation as improving and although we may not be completely satisfied with all aspects, many positive things have been done,
"If Cambodia is able to maintain present political framework until the 1998 national elections, a democratic and normal life will have been achieved after years of war and instability."
With regard to human rights and democracy, the Ambassador said:
"It was E.U. policy to allow sovereign countries to reach democratic status by their own means,
"This is a situation where the international community should help the Cambodians rather than condemn them,
"Our approach on human rights is that we feel if we continue our development aid we will see results".
It should be noted that PERC for the years 1991-1997 will have a total value of approximately US$135 million involving different sectors such as rural development, primary schools, institutional support, human rights, environment, de-mining, food for work and other rehabilitation projects.
H.E. Mr. Ung Huot, Minister of Foreign Affairs and International Cooperation, led a delegation to attend the 29th ASEAN Ministerial Meeting (AMM) and the 3rd ASEAN Regional Forum (ARF) in Jakarta, Indonesia from July 18-25, 1996.
The Minister addressed the 29th AMM on the preparation and the determination of the Royal Government of Cambodia for ASEAN membership by 1997, and in his address to the 3rd ARF on July 23, 1996, the Minister pledged the full commitment of Cambodia for an Asia Pacific zone of peace, stability and cooperation.
All country members of the ASEAN and the ARF were supportive of Cambodia to become a full member ASEAN by next year.
Cambodia attended the 26th and 27th AMM as Special Guest.
On July 28, 1995, during the 28th AMM in Brunei Darussalam, Cambodia was granted ASEAN observer status.
On April 3, 1996, H.E. Mr. Ung Huot formally submitted Cambodia's application for ASEAN membership to chairman of the ASEAN Standing Committee.
On July 1997, Cambodia is set to become an ASEAN member during the 30th AMM which will be held in Kuala Lumpur.
Cambodia's Foreign Affairs and International Cooperation H.E. Mr. Ung Huot paid an official visit to the Philippines from August 6-8, 1996. The visit was aimed at strengthening relations and to discuss cooperation and assistance which the Philippines has provided.
During his visit, the Minister held talks with President Fidel Ramos and other top officials and met interested businessmen to talk about investment opportunities in Cambodia.
President Fidel Ramos offered to help promote English in Cambodia and develop its agriculture and public health services to facilitate Cambodia's entry into ASEAN.
A Cambodian team of three sportsmen and two sportswomen attended the Centennial Olympic Games in Atlanta, between July 19 and August 4, 1996. This is the first time Cambodia has participated in the games after a break of more than 20 years due to war. Cambodia last sent its team to the Olympic Games in Munich in 1972. Cambodia rejoined the International Olympic Committee (IOC) in 1996.
The three men on the team are To Rithia 29, 42 km marathon, Hem Nampath 25, 200m swimming, and Wath Cham Roerun 25, wrestling. The two women are Ouk Chanthon 22, 100m sprint, and Hem Raksmer 14, 100m swimming.
The First Prime Minister H.R.H. Norodom Ranariddh, who is also president of the National Olympic Committee of Cambodia, said that the training given to the athletes was less than ideal. However, he said that the important thing was to participate and to fly the Cambodian flag in Atlanta. The First Prime Minister also said training facilities and programs will be improved as the country develops.
The forestry sector represents a valuable sustainable resource base for the economy. Cambodia's forest areas constitute a major national asset. Output in this sector has increased from 2.1% of GDP in 1990 to 5.9% in 1995. Illegal logging, which poses the highest threat to this resource, is being curtailed through the imposition of a ban on log and sawn timber exports. At the same time, logging concessions have been granted with a view to ensure the long-term sustainable exploitation and reforestation which can be monitored and which will yield assured and regular incomes.
The recommendations of the Forestry Management Study recently conducted by international agencies are now being considered for more effective sustainable management of forestry resources. The recommendations will provide the basis for future action including:
Cambodian Finance Minister Keat Chhon in a meeting in Phnom Penh on July 1, 1996 with diplomats and representatives of financial institutions, said :
The Government approved on June 19, 1996 a new legislation proposed by the Ministry of Defense aimed at neutralizing the Royal Cambodian Armed Forces. The bill has already been sent to the National Assembly for debate.
When passed, the draft law, will prohibit members of political factions from holding positions in the armed forces and will require the armed forces to choose between their political and military posts. It will require the armed forces personnel to give up their party positions and their seat in the National Assembly.
The Ministry of Defense will hold a seminar to inculcate a sense of neutrality among military personnel and to make them understand the need for them to stop attending political meetings and showing support for political parties.
The Government's Public Administration Reform, which is a part of the Public Investment Program 1996-1998, articulates that the Government is committed to reducing the number of civil service personnel by 20% from the present 143,855 by end 1997. This calls for various measures including early and voluntary retirements, as well as benefit package for those who will leave the civil service. A comprehensive departure scheme has been prepared and adopted in this regard. The total cost of implementing the scheme (including benefit packages) is estimated at about US$54.2 million. While waiting for the implementation of the overall reform of the civil service career and wage systems, there is a need to motivate persons occupying key positions in the civil service. There is also a need for on-the-job training fueled by the implementation of economic and institutional reforms which require short term adjustments and strengthening of civil servants' capacities. A training center will be created for implementing a national plan of intensive training in management and business administration for key civil servants.
The Government is committed to continuing the process of restructuring and reform of the security apparatus and reducing the size of the security forces from 125,000 to about 85,000 personnel by end-1997. A comprehensive Cambodia Veterans Assistance Program has been prepared to help personnel leaving the armed forces to re-integrate into civil society in an orderly manner. This program will cost about US$70 million.
Sponsored by the Coalition for Free and Fair Elections and funded by the Australian government, a two day conference was held in Phnom Penh on July 11-12, 1996. The United Nations Secretary General's Representative to Cambodia Benny Widyono, addressed the Conference on Free and Fair Elections and said :
According to the statement made by the European Union Ambassadors delegation during its visit to Cambodia on June 24-27, 1996, the European Union will offer technical assistance to Cambodia in the two upcoming elections.
The Cambodian Assistance to Primary Education project, a US$30 million US-funded aid program to Cambodian primary schools, was launched on July 8, 1996 in Phnom Penh by Cambodian Education Minister Tol Lah and US Ambassador Kenneth Quinn and senior US Agency for International Development officials.
The project, signed in August 1995, will provide training to some 45.000 primary school teachers and headmasters, establish a system of "school clusters" throughout much of Cambodia, and provide training to the Education Ministry.
Tourism is on the rise in Cambodia. More than 100,000 foreign tourists and businessmen visited Cambodia during the first five months of 1996, an increase of 30.6 percent compared to the same period last year.
A total of 18,392 people arrived in May, including 12,704 people traveling as tourists and 5,018 people on business. That is 16 percent higher than in May 1995.
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