On the occasion of the universal New Year 1997, I would like, on behalf of the Royal Government of Cambodia, the Royal Embassy and in my own name, to wish our Cambodian compatriots, our American friends, and the readers of the Embassy Newsletter all the best for the New Year.
In welcoming the New Year, I would also like to take this occasion to highlight what has been accomplished by the Embassy since our formal re-opening on July 20, 1995. After the arrival in Washington, DC. on May 27, 1995 of a team that I have the honor and the privilege to lead, and with the assistance and support from many Cambodian compatriots and American friends, the Embassy started to function immediately. The Embassy's plan of action focused on establishing and strengthening the relationship with the US executive and legislative institutions, US businessmen, and the Cambodian community.
In the past twenty months, the Embassy has established and maintained regular contacts and good relations with many key officials in both executive and legislative branches of the United States government. Access to US institutions has become much broader for the Embassy. Numerous meetings to pursue issues of importance to the two countries have been held. Through all these contacts and meetings, the relationship in the interests of the two nations has been strengthened and broadened. One of the most fruitful and proud results is that MFN trade status has been conferred upon the Kingdom of Cambodia. Now the Embassy is working to obtain designation for Cambodia as a least-developed beneficiary developing country under the provisions of the US Generalized System of Preferences ( GSP ).
In light of the key role played by business as the driving force for economic development and in contributing to the process of rehabilitation and reconstruction of the country, the Embassy has concentrated attention and efforts on greater contact with the business community. Through personal contacts, letters, and meetings, relationships are being established and developed every single day. The publication by the Embassy of the newsletters and informational documents have reached out to Americans to inform them about the process of economic rehabilitation and development in Cambodia and the abundant investment opportunities , as well as, the tourist attractions and the country's cultural richness. As a result, US businessmen had expressed considerable support for granting MFN trade status to Cambodia, several companies have invested in Cambodia, and many others have shown an interest in studying the opportunities.
With regard to another very important goal--building relationships with our compatriots, I am pleased to report that our contacts with the large and vibrant Khmer community members have gained forward momentum. We have benefited considerably from the advice, assistance, support, and participation of our compatriots in various ceremonies, meetings, social events and other activities hosted by the Embassy. The encouragement and support provided by our compatriots in favor of granting MFN to Cambodia have been gratefully welcomed and greatly appreciated by the Embassy. The entire staff of the Embassy and I have been given great honor and opportunity to attend various events sponsored by the Khmer community. We have also traveled to Massachusetts, California, Colorado, Texas, New York, Georgia, and other states to meet with our countrymen and countrywomen.
As we take pride in what we have accomplished so far, we know we still have much more to do. With the coming of the New Year, we will double our efforts to do everything we need to do to strengthen and broaden the good relations between the two countries and between the Embassy and our compatriots as well.
Var Huoth
H.R.H. Samdech Krom Preah Norodom Ranariddh, First Prime Minister, and H.E. Samdech Hun Sen, Second Prime Minister led a delegation to attend the First ASEAN Informal Summit in Jakarta, Indonesia, on November 29- December 1, 1996.
On November 30, the delegation visited the ASEAN Secretariat, called on Indonesia's President Soeharto, and attended the meeting between the ASEAN and the CLM ( Cambodia, Lao People’s Democratic Republic, Myanmar ) Heads of State and Government.
The Cambodia's Prime Ministers briefed their ASEAN counterparts on the current political and economic situation in Cambodia, its preparations for full membership in the Association. Two Prime Ministers also highlighted the country's ongoing needs for continued human resources development related to ASEAN activities and recommended the Report of the Study Group on Cambodia and Laos for consideration by ASEAN.
ASEAN leaders agreed at the Summit that Cambodia, Laos and Myanmar should join ASEAN simultaneously.
Indonesian Foreign Minister Ali Alatas told a news conference at the end of the Summit that:
"The heads of government reaffirmed their strong commitment to the speedy realization of an ASEAN comprising all 10 Southeast Asian countries. They agreed that Cambodia, Laos, and Myanmar be admitted as ASEAN members simultaneously.
"As to the actual timing of the admission of the three countries, this will be announced in due time.
"ASEAN leaders agreed to request the relevant ASEAN bodies to continue with the necessary technical and procedural steps to admit the three countries."
H.E. Samdech Hun Sen, Second Prime Minister of the Royal Government of Cambodia, was awarded the World Peace Prize by the California-based World Peace Prize Awarding Council for his great and active contribution in peace process, national reconciliation and development in Cambodia.
In an awards ceremony in Phnom Penh on December 2, 1996, Dr. Robert L. Leggett, Chief Judge of the World Peace Prize Awarding Council and Co-Founder of the World Peace Corps Academy, stated that Second Prime Minister Hun Sen was honored especially for bringing Cambodia out of the brutal Khmer Rouge regime and implementing free-market reforms in the late 1980s. He also said that while the Prize does not exactly have the status of the Nobel Peace Prize, it nevertheless was a tribute to Samdech Hun Sen.
Addressing the ceremony, Samdech Hun Sen said that:
"This great honor does not belong to me alone, but also to all the Cambodian people who have always displayed their courage and determination to bring peace for the country,
"Although we have achieved a lot, there is still a lot more to be done. I would like to call upon all peace-loving people to join forces in eliminating forever the sounds of gunfire and replace it with only the sounds of hammers and machines and the beautiful voices at harvest time and the laughter of children in schools."
He also thanked the international community for their support and assistance in bringing peace to Cambodia.
Besides the World Peace Prize, the Council conferred three titles upon the Second Prime Minister: Human Cultural Asset, Roving Ambassador for Peace, and World Peace Congressman.
The World Peace Prize Awarding Council had granted World Peace Prize to five leaders of various countries in the world, including Former US President Ronald Reagan, Egyptian President Hosni Mubarak, the late Israeli Prime Minister Yitzhak Rabin, the late South Korean President Singman Rhee, and King Taufa Ahau of Tonga. H.E. Samdech Hun Sen is the sixth world leader and the first Southeast Asian leader to receive the Prize.
A meeting designed to strengthen alliances between the two main coalition parties was held in Phnom Penh on December 16, 1996. The meeting was attended by many senior officials from the two parties, including Deputy Prime Minister and Minister of Interior and National Security Sar Kheng (CPP), Deputy Prime Minister and Minister of Public Works Ing Kieth (Funcinpec), Co-Ministers of National Defense Tea Banh (CPP) and Tea Chamrath ( Funcinpec), and Minister of Interior and National Security You Hockry (Funcinpec).
The meeting, which focused mainly on a number of principles important to strengthening the alliances between the two parties, occurred in an atmosphere of understanding and mutual interest in the rehabilitation and development of the country.
On December 16, 1996, the Royal Government of Cambodia signed with the Malaysian company Dragongold a Memorandum of Understanding to transform an abandoned airport in Kampong Chhnang province into an international air cargo terminal.
Dragongold's Co-Director, Iain Gray, said that he hopes the construction of this airport will finish by the end of 1997, and that the project will provide jobs for nearly 10,000 Cambodians.
The Company officials predicted that this joint venture project with the Cambodian government will attract over US$ 3 billion worth of foreign investment to Cambodia, over a fifteen -year period.
The airport in Kompong Chhnang province was a military airport built during the Khmer Rouge regime.
Following are the main events in Cambodia-US relation since May 27, 1995:
- On May 27, 1995, a team led by H.E. Ambassador Var Huoth arrived in Washington, D.C to open the Embassy after an absence of twenty years.
- On July 11, 1995, the US House of Representatives passed legislation (H.R.1642) providing Cambodia unconditional MFN trade status.
- On July 20, 1995, the Royal Embassy of Cambodia to the United States was officially re-opened. This historic event marked the beginning of a new era in Cambodia - US relations.
- On August 4, 1995, US Secretary of State Warren Christopher became the highest ranking US official to visit Cambodia in 50 years. During his visit Secretary Christopher stressed the US commitment to support the democratic path chosen by the Cambodia.
- On September 14 - 18, 1995, USAID Deputy Administrator Ms. Carol Lancaster visited Cambodia to assess US programs.
- On September 15, 1995, H.E. Ambassador Var Huoth presented his Letter of Credence to President Clinton.
- From September 29, - October 4, 1995, a twenty-member trade delegation from the State of Washington visited Cambodia to study investment opportunities in the country and the establishment of sister-city ties between Seattle and Sihanoukville.
- From October 3-5, 1995, Cambodia Minister of Foreign Affairs and International Cooperation paid his first official visit to Washington, DC.
- On December 12-13, 1995, US Deputy Assistant Secretary of State for East Asian and Pacific Affairs Kent Wiedemann visited Cambodia to promote bilateral relations.
- From January 12-17, 1996, Ieng Mouly, Cambodia Minister of Information and Chairman of the Governing Council of the Cambodian Mine Action Center (CMAC), paid a visit to Washington, D.C to discuss matters concerning mine-clearing operations with US officials responsible for policy and funding of US programs in Cambodia.
- From January 12-17, 1996, US Assistant Secretary of State for East Asian and Pacific Affairs Winston Lord visited Cambodia to demonstrate the support of the US Government for Cambodia's courageous struggle to move away from a tragic history to a more hopeful future.
- From May 30- June 6, 1996 Cambodian Minister of Commerce Cham Prasidh paid a working visit to the US to promote economic relations between the two countries and to participate in the Seventh Annual Conference of the Forum on Cambodia, Vietnam, and Laos (May 30- June 1).
- On July 25, 1996, the US Senate passed H.R. 1642 to extend unconditional MFN Status to Cambodia, after agreeing to a Finance Committee amendment.
- On August 1996, Overseas Private Investment Corporation (OPIC) Senior Vice President Susan Levine visited Cambodia to gather information necessary for assessing OPIC-financed loans to US investors conducting business in the country.
- On September 12, 1996, the US House of Representatives approved the bill granting MFN status for Cambodia after agreeing to the US Senate amendment.
- On September 25, 1996, President Clinton signed the MFN bill for Cambodia.
- From September 29-October 3, 1996, Cambodian Minister of Foreign Affairs and International Cooperation Ung Huot paid his second visit to Washington, D.C..
- On October 4, 1996, an agreement between the Kingdom of Cambodia and the US on Trade Relations and Intellectual Property Rights Protection was signed in Washington, D.C. by Cambodian Minister of Commerce Cham Prasidh and Acting US Trade Representative Ambassador Charlene Bashefsky.
- On October 4, 1996, Minister Cham Prasidh, on behalf of the Royal Government of Cambodia, handed over to Ambassador Charlene Bashefsky an official request for designating Cambodia as a least-developed beneficiary developing country under the provisions of the US Generalized System of Preferences (GSP).
- On October 25, 1996, the Agreement on Trade Relations and Intellectual Property Rights Protection between Cambodia-US entered into force. Pursuant to the terms of this Agreement, products of Cambodia and of the US receive reciprocal MFN treatment by the two countries as of October 25, 1996.
Since the re-opening of the Royal Embassy of Cambodia on July 20, 1995, various achievements have been made. The economic relationship between Cambodia and the United States has developed significantly.
We can note a marked increase in trade activities between the two countries. U.S. exports totaled $27 million in 1995 compared to $7.4 million in 1994, $15.6 million in 1993. Cambodia exports amounted to $ 5.2 million in 1995 against $1.1 million in 1994 and $0.6 million in 1993. U.S. exports are mostly fuel, construction materials electronic goods, consumer durable, transportation equipment, beer, and cigarettes. Cambodia exports are timber, rubber, garment, and textile products.
The Royal Government of Cambodia signed an Agreement with the Overseas Private Investment Corporation. OPIC offers financing and political risk, insurance for projects in Cambodia.
An agreement on trade relation and intellectual property rights protection between Cambodia and the U.S. has also been signed last October 4. Currently, the U.S. Department of Commerce is assisting the Cambodia Ministry of Commerce in technical assistance on trademarks, patents and copyrights.
So far, there are around 110 U.S. companies or companies representing U.S. products in Cambodia. Their activities are in construction (highway, power production facility), oil distribution, services, import-export, etc.
The US is ninth in investment rank in Cambodia with US$ 32 million.
Last October 25 marked the entry into force of most favored nation treatment to the products of Cambodia. MFN treatment reduces tariffs applied to Cambodia products from a previous high of up to 100% to a rate as low as 2%, depending on the product.
The two countries are in the process of negotiating a treaty concerning the encouragement and reciprocal protection of investment.
The Export-Import Bank is an important economic organization in supporting U.S. exporters (capital guarantees - export credit insurance - loan guarantees). This financing organization is expected to start its activity in Cambodia in 1997.
Within two years, many businessmen, investors, individuals and scholars who are eager to know about the current situation in Cambodia have contacted the Embassy. Among them, there are numerous companies and individuals interested in:
- Investment opportunities offered by Cambodia (tourism, real estate, telecommunications, energy, mineral exploration, oil/gas exploration, construction, infrastructure development, agriculture).
- Import-export activities (garment, fabrics, handicrafts, furniture, bronze, gemstones, footwear, medical items, laboratory supplies, books, videos, agriculture equipment, paper, promotional records, general merchandises)
- Manufacturing in Cambodia (garment, fragrance, socks, TV antennas, communication cables).
- Cultural projects
- Publications about/including Cambodia (economic, business, investment, cultural, and tourist facts and directories)
By looking at the number of visas issued by the Embassy, we can see that our efforts in disseminating general and tourist information on Cambodia have been rewarded. From June 1995 until October 1996, we have issued 1,872 entry visas, of which 1,555 were tourist visas.