It is a special privilege and honor for me to attend, on behalf of His Majesty Norodom Sihanouk, King of Cambodia, and the First and Second Prime Ministers of the Royal Government of Cambodia, the presidential inauguration for President Clinton to start his second four-year term. I would like to take this precious opportunity to wish the President a great success in his noble and high responsible mission in leading the United States toward the 21st century. I would also like to wish a new great progress to the good relations of friendship and cooperation between the United States and the Kingdom of Cambodia.
If we look back on the bilateral relations between the two countries during several past years, we can affirm that many remarkable and satisfactory achievements have been recorded. Since 1991 the Cambodian government has provided full cooperation and assistance to the United States in its search for American missing in action in Cambodia as a result of the war. Through the investigations jointly carried out by the US Embassy's Joint Task Force - Full Accounting (JTF-FA) and the Royal Government of Cambodia's Joint Prisoners of War/ Missing in Actions (POW/MIAs) Committee, six Americans have been found and identified.
The United States in turn has helped Cambodia so much in its historical mission to build peace, national reconciliation and democracy, as well as to restore and develop the country. US aid and assistance have been provided in various fields ranging from democratic initiatives to economic growth, from infrastructure to rural development, from education to health etc.…We Cambodians are very grateful for that help.
While we believe that a lot of progress has been made, we know that much remains to be done to make our bilateral relationship grow stronger every day. And so we will continue our efforts in the years ahead.
With the second term of President Clinton as US chief executive and the continued support of the US Congress for the democracy's march as well as the process of rehabilitation and development in Cambodia, we firmly hope that the already good relationship between the two countries will be further developed. The US Generalized System of Preferences (GSP) will be conferred upon the Kingdom of Cambodia in the near future. The bilateral treaty concerning the encouragement and reciprocal protection of investment, which is now in the process of negotiating, will be signed. The US Export-Import Bank will start its activity soon in Cambodia. More and more American companies and businessmen will go to Cambodia. The two-way trade flow between the two countries will be boosted. The US aid and assistance for Cambodia will be increased.
It is in that strong conviction that we are working to strengthen and broaden the relationship between the two nations.
Var Huoth
In an effort to protect the country's forest, the Royal Government has taken a strong public stance against illegal logging and timber export along the Cambodian border.
On October 24, the government approved the Forestry Policy Assessment proposed by World Bank, FAO, and UNDP, and the tougher Forestry Code. It also categorically prohibited logging companies from exporting timber in the unsecured and uncontrollable zones along the Cambodian-Thai border. December 31, 1996 was fixed as deadline for the export of the rest of the felled timber.
The request from logging companies for an extension of the December 31 deadline has been refused by the Ministry of Agriculture. Through a declaration dated December 26, the government reconfirmed the December 31 deadline. The declaration stated that with effect from December 31, at mid night, all exports of logs and sawn timber will be in contravention of Cambodia law. The final and semi-final products of processed wood permitted by the government will not be allowed to export unless they were controlled and verified by the national forestry agents.
To enforce its determination on log export ban, the Royal Government has put in place on January 1 a broad of measures, including the use of military forces in controlling the border areas. All individuals and companies found to be engaged in illegal activity will be arrested and all property will be confiscated.
Besides, to gather and process information to design a system that will enable the government to fight against illegal activities and collect and remit to the national treasury the correctly assessed revenue from all wood products originating from legal sources, the government has decided to set up a permanent log monitoring system. For this purpose, the government has approved a three-phase study plan to be carried out as soon as possible.
The Cambodia's National Assembly has passed the 400-article labor law on January 10.
The law provides for a broad of measures to protect workers' right, including the setting of a minimum wage, a 48 hour work week, overtime pay, compensation for accidents and paid leave.
Cambodia's Finance Minister Keat Chhon said the law was well-balanced. "This law will help us solve labor disputes in a peaceful way, in a legal way and not transform it into a political tool," he said.
The parliamentarians expect the legislation would serve as legal basis in settling the disputes between workers and managers.
The law is not only a legislation protecting workers' rights but also a prerequisite for Cambodia obtaining Generalized System of Preferences (GSP) status from the United States.
Considering that telecommunications is an important component in the social and economic development of the country, the Royal Government has put a priority in moving Cambodia toward an era of high technology telecommunications systems.
The process is being carried out through two important projects. A $40-million Japanese project to upgrade Phnom Penh's telephone network is considered as a start to directly link the country to the outside world. Work on laying cable, jointly undertaken by Nichimen Corporation, Fujitsu Corporation and Sumitomo Electric, are in progress along the main boulevards and roads in Capital Phnom Penh. By March, some 6,800 lines are expected to be ready for use and the additional 10,000 lines will be in operation by the end of 1997.
The other is the $17-million project to link Phnom Penh to the border town of Poipet via cables. In the future, the cables will be linked to Bangkok. The project, funded by German government, will start in early this year.
Besides, the F3 Satellite Earth Station, installed by Australia's Telstra Corp. under a business contract with Cambodia's Ministry of Posts and Telecommunications, has provided the country with access to Pacific Ocean satellites. By means of that station, Cambodia has started on January 17 direct telecommunications links to the United States and Canada, while links to other Pacific nations can be opened when required. The establishment of the direct links is hoped to lead to the reduction of tariff rates from February 1 and to the enhancement of all relationships, including business, between Cambodia and the two countries.
Cambodian Commerce Minister Cham Prasidh led a delegation to attend the four-day ministerial meeting of the World Trade Organization in Singapore early December 1996. Cambodia is an official WTO observer.
"Cambodia will enter the World Trade Organization after the country joins ASEAN," Minister Prasidh said after returning from Singapore. "We expect to be a member by the end of 1997."
The Minister also said that his Ministry will arrange all documents for membership, including a detailed policy of Cambodian economics and tax procedures.
"It is not an easy job to join the World Trade Organization, we need time to negotiate with them," he said.
It should be noted that Cambodia's efforts to improve its trade status have been recently rewarded with Most Favored Nation trade status from the United States. Cambodia also has Generalized System of Preferences status with 26 developed countries.
A delegation of the International Finance Corp (IFC) visited Cambodia early December 1996 to foster the cooperation between IFC and the Kingdom of Cambodia. IFC is the private sector investment of the World Bank.
The International Finance Corp will open its office in Phnom Penh within a few months, said Carol Lee, the leader of the delegation.
Cambodia's entry into the organization is expected to yield millions of dollars in loans from IFC for businesses in the country, said Harold Rosen, IFC manager for Southeast Asia and the Pacific.
The National Assembly is ready to pass legislation finalizing membership early this year. "Membership in IFC is part of our overall strategy of financing investment in Cambodia…public and private," said Cambodian Economy and Finance Minister Keat Chhon.
Australia has agreed to take care of Cambodia's $339,000 IFC membership fee, Australian Ambassador to Cambodia Tony Kevin said on December 11, 1996.
"The next step for us is to work with the private sector to bring economic growth to Cambodia," said Carol Lee. While the World Bank makes loans to governments, its private sector arm, the IFC, loans up to $100 million to private businesses that want to build infrastructure in, or provide services to, a developing country.
The International Finance Corp is looking at a new Phnom Penh power plant and a luxury hotel near Angkor Wat for its first investment projects in Cambodia, said Harold Rosen. The power plant and hotel projects would hopefully encourage other investors to come to Cambodia, he added.
The Asian Development Bank (ADB) opened its mission in Phnom Penh on December 18, 1996. The mission will assist the Cambodian government and the ADB to meet the objectives set out for the country and to coordinate projects by the ADB, other donor agencies and the government.
The ADB is now one of Cambodia's largest aid donors. Since the general elections in 1993, the ADB has provided Cambodia with nine loans totaling $246 million, including $105 million approved in 1996, and 47 technical assistance grants for nearly $39 million.
The ADB expects to lend an additional $ 85 million over the next three years, with another $10 million per year in technical assistance to help Cambodia in its transition to a market economy.
Germany's Minister of Economic Cooperation and Development Carl Dieter Spranger paid an official visit to Cambodia from January 22-25.
During talks with Cambodian leaders and ministers, he expressed much attention to the progress of democratic journey in Cambodia since the general elections in 1993.
On January 23, the Minister signed with Cambodian Foreign Affairs and International Cooperation Minister Ung Huot the Agreement on Financial Cooperation for 1996. Under the terms of the Agreement, the German government will provide 5 million DM (Deutsch Mark) for "Credit Scheme for the support of small scale enterprises" and another 5 million DM for " Sector Releated Project Health III".
Germany has provided Cambodia with more than 290 million DM in official development aid since 1993.
The Cambodian Mine Action Center was first established in June 1992 by the Supreme National Council. Its status is a national institution with a mandate to coordinate all demining activities in Cambodia.
CMAC's primary goal is "to achieve a state within Cambodia where the people can go about their lives free from the threat of mines and reconstruction and development activities can take place in a safe environment."
CMAC has its headquarters in Phnom Penh and 4 regional demining units:
Two major objectives:
An eight-member delegation of the US House of Representatives visited Cambodia from January 13-15, 1997. Accompanied by senior staff members, the delegation includes Rep. John Porter of Illinois, Rep. Jay Dickey of Arkansas, Rep. Jerry Costello of Illinois, Rep. Eliot Engle of New York, Rep. William Lipinski of Illinois, Rep. Frederick Miller of Florida, Rep. Connie Morella of Maryland, and Rep. Roger Wicker of Mississippi.
During their stay, the US Representatives called on Samdech Chea Sim, President of the National Assembly, H.R.H Samdech Krom Preah Norodom Ranariddh, First Prime Minister, H.E. Samdech Hun Sen, Second Prime Minister, H.E. Mr. Ung Huot, Minister of Foreign Affairs and International Cooperation, and other ministers of the Royal Government. The delegates also met local human rights groups.
In a news conference at the end of the visit, Rep. John Porter, head of delegation, praised the progress toward democracy in Cambodia, and said that their fears about human rights and environmental abuses had been allayed during this visit.
"Obviously, we have ongoing concerns about human rights, press freedom, the environment, including logging and the like. I think they have been allayed fairly well by the discussions we have had," said Rep. Porter.
"Our impression is that the intentions are there to address those issues forcefully," he added in referring to the meetings with Cambodian First and Second Prime Ministers.
Rep. Porter also told reporters that the delegation, which will report back to Congress, will try to gather support from their congressional colleagues for a substantial increase in US aid to Cambodia.
"We would like to get the numbers up. We feel that the United States ought to continue the human rights funding that we have, the democracy funding that we have… we'd like to see more funding to build some infrastructure like highways and we'd like to do better if we can on the mine-clearing."
The Cambodia's National Assembly has, on January 17, ratified the Investment Incentive Agreement between the Kingdom of Cambodia and the United States. The agreement, signed on August 4, 1995 during the visit to Cambodia by Secretary of State Warren Christopher, will enable the Oversea Private Investment Corporation (OPIC) to operate fully its economic activities in Cambodia.
It should be noted that OPIC plays a very important role in promoting US investment abroad. It assists US investors through two principal programs: the insurance of investment against certain political risks, and the financing of such enterprises through direct loans and /or loan guarantees. OPIC also sponsors investment missions and reconnaissance surveys for evaluating a specific investment opportunity in a developing country.
In congratulating Senator John McCain on his appointment as Chairman of the Senate Commerce, Science and Transportation Committee, Ambassador Var Huoth, on January 17, has sent the Senator the following letter:
Dear Senator McCain:
Let me begin by saying that I still remember with great pleasure the recent wonderful event in Phnom Penh where you were welcomed and honored by the leadership and people of Cambodia. The success of your visit has further strengthened the ties of friendship and cooperation between the Kingdom of Cambodia and the Unites States.
I have learned that you have been appointed as Chairman of the Commerce, Science and Transportation Senate Committee. I wish to congratulate you on your new responsibilities which has a particular significance as we move toward a new century.
With your broad and rich experiences, I believe you will assume your additional duties successfully. I also hope that our excellent and strong cooperative relations will be further consolidated. I take this opportunity to wish you success in these new endeavors.
In response to an article "To Control Cambodia, Rivals Are Stripping It Bare" in the New York Times of December 22, H.E. Ambassador Var Huoth wrote to the Editor of the newspaper on what is failed to report by the author, especially the measures and strong actions taken by the government against illegal logging in Cambodia. The letter, dated December 30 and was rewritten for publication in the New York Times of January 2, reads as follows:
To: The Editor of the New York Times
Dear Sir:
I would like to take exception to your allegations regarding the continuation of the export of logs, published in your December 22 news article "To Control Cambodia, Rivals Are Stripping It Bare". You failed to report that the Royal Government of Cambodia only allowed the export of logs felled before April 1995. The decision was made due to the limited capacity of sawmills in Cambodia to process logs that had been left damaged by tropical weather. It should be mentioned that no logs felled after April 1995 are allowed to be exported and the government has already ordered the review of all logging concessions given to foreign and local companies in order to ensure sustainable development. However, the deadline for the cessation of the exportation of logs from Cambodia has been set for December 31, 1996. From this date on, all exports of logs and sawn timber will be in contravention of Cambodian Law. The final and semi-final products of processed wood permitted by Royal Government of Cambodia will not be allowed to export unless they were controlled and verified by the national forestry agents. There will be no exceptions to this ban.
Contrary to your assertions that the government colluded in logging activities, the government has taken strong actions against illegal logging by shutting down scores of sawmills, arresting hundreds of offenders, confiscating thousands of cubic meters of timber, and issuing fines in the millions of dollars. The failure to report the efforts made by the government is misleading and biased.
The forests, Cambodia’s main natural resources, are central to the livelihood of the Cambodian people. Deforestation is the main concern of the government. To cope with the deforestation, the Government has already approved the Forestry Policy Assessment proposed by the World Bank, FAO (Food and Agriculture Organization), UN Development Program, and the Forestry Code proposed by the Ministry of Agriculture, Forestry and Fisheries. The Government cooperated with its neighboring countries to stop illegal logging and timber export along the borders with the aim of properly protecting the common environmental heritage.
The two decades of war have left tremendous problems and devastated legacies for the present Cambodia: poverty, insecurity, anarchy, rural underdevelopment, unemployment, etc. However, we are proud to note that the Royal Government of Cambodia has recorded great achievements in rebuilding the country, and let us not forget that "Rome was not built in a day".
Last week, the Government reaffirmed its strong commitment to enforce the upcoming deadline on the export of timber. Speculation on how effective this enforcement will be, however, before the deadline has come into force, is unfair and without foundation.
At the invitation of the Presidential Inaugural Committee, H.E. Ambassador Var Huoth, together with other heads of Diplomatic Missions to the United States, attended the following official ceremonies marking the inauguration of President Clinton and Vice President Al Gore in their second term.
On January 17 at 4:00 p.m., a Buffet in honor of the President and the Vice President. H.E. Ambassador conveyed to President Clinton and Vice President Al Gore the congratulation and best wishes of His Majesty Norodom Sihanouk, King of Cambodia, and the First and Second Prime Ministers of the Royal Government of Cambodia. The Ambassador also profited that occasion to express, on behalf of the Cambodia's Minister of Foreign Affairs and International Cooperation and on his own behalf, his gratitude to Secretary of State Warren Christopher for his support and active contribution to the strengthening of the bilateral ties. He also congratulated Secretary of State Designate Madeleine Albright on her nomination to that important position.
On January 20, the Presidential Inauguration at the Capitol Hill, a luncheon at the Blair House, the parade in honor of the President and the Vice President, and the Presidential Inaugural Ball at the Union Station.
At the invitation of the Governor of Pennsylvania, H.E. Ambassador Var Huoth participated in the second Pennsylvania Farm Show International Day, on January 10-11, at the Farm Show Complex in Harrisburg, Pennsylvania.
In a meeting with Pennsylvania Governor Tom Ridge and Agriculture Department Secretary Charles C. Brosius, the Ambassador informed them of the general situation in Cambodia, especially on politic and economic fields.
Ambassador Var Huoth also had a meeting with over twenty businessmen organized by Shagin & Anstine LLC company. He informed them of the economic growth and investment opportunities in Cambodia.
The Ambassador also profited that occasion to meet with our Cambodian compatriots in that area and informed them of the current situation in their homeland.
It should be noted that the Pennsylvania Farm Show is the largest indoor exposition in the United States, with about 16 acres of commercial exhibits, the finest livestock, and thousands of displays of the high quality products Pennsylvania has to offer to the world. The show is also an opportunity to meet Pennsylvania's food producers, processors and agricultural businesses, and to see first hand the diversity of Pennsylvania agriculture, the Commonwealth's number one industry.
H.E. Ambassador Var Huoth visited Washington State from January 24-29.
During his stay the Ambassador met with Rep. Rick White and Rep. Jack Metcalf, Senator Slade Gorton's Staff Assistant Steven Buri, University of Washington Vice Provost Steven G. Olswang, City Council of Seattle, leaders of King County, Mayor of Tacoma and US businessmen. The discussions focused on general situation, especially the investment opportunities in Cambodia and the way to foster the economic and trade relations between Washington and Cambodia. The establishment of a sister-city relationship between the two main sea port cities Seattle and Sihanoukvill and the exchange of students were also subjects of the discussions.
Ambassador Var Huoth also visited Cambodian pagodas in Seattle and Tacoma, and attended several programs organized by the Cambodian Community in the State. During the meetings, he informed his compatriots of the current situation in their homeland.
He also accorded interviews to US TV and journalists, and the Cambodian language radio in Seattle.