There have been good reasons to be optimistic for the future of Cambodia, especially for peace, security, and development.
Discussions between the Royal Government of Cambodia and the breakaway Khmer Rouge faction led by Ieng Sary are continuing, and they have struck a severe blow to the Khmer Rouge movement. The capture without any serious clashes of the key Khmer Rouge base of Samlot by the combined forces of the Royal Army and the breakaway Khmer Rouge proves clearly the weakened position of the hardliners. The mass defection to the Royal Government after Samlot's capture by five Khmer Rouge divisions have made the movement even weaker. It is believed that all these facts mark the beginning of the collapse of the Khmer Rouge forces in Cambodia. As a result, hopes have risen for a total peace and the end of all destructive acts committed by these forces are moving toward becoming a reality. What Cambodia needs now more than anything else is total peace in the country. Without peace, the country's development can not see optimum results. Although granting amnesty to Ieng Sary has given rise to some controversy, the Royal Government of Cambodia appreciates the comprehension shown by the international community toward the Cambodian Government's position in this delicate matter.
Another notable event was the passage by the US Congress of a bill extending most-favored nation trading status to Cambodia and the signing of this bill into law by President Clinton. Subsequently, a trade agreement between Cambodia and the United States was signed on October 4, and it will open the way for Cambodia to begin to reap the benefits of MFN. It is a significant opportunity for Cambodia to foster its economic development. MFN status will provide Cambodia with greater possibilities to develop its private sector, a key factor in achieving the country's free-market economic policy. By reducing import customs duties on Cambodian products exported to the US from existing levels of over 100 percent, to levels of around 12-13 percent, MFN will pave the way for the flow of the American investors into Cambodia. It will also attract businessmen from other countries to invest in producing goods and commodities in Cambodia because of their access to US markets. As a result of increased investment, bilateral trade relations between the two countries will be promoted, more employment opportunities for Cambodians will be created, living standard of the people will be raised, and Cambodia will be better off. In strengthening the economy, MFN will also help improve democracy and the respect for human rights in a more stable Cambodia.
Of course many difficult issues still lie ahead, but these two important opportunities will encourage Cambodia to leave no stone unturned on its road toward democracy and development.
Signed Var Huoth
The Royal Cambodian Armed Forces, in collaboration with Khmer Rouge breakaway forces, undertook a joint offensive on September 30 and captured the key Khmer Rouge hardliners base of Samlot. Samlot, 25 kilometers south of Pailin, is a major Khmer Rouge weapons depot and an important border crossing with Thailand.
The combined forces also captured the northwestern Khmer Rouge base of Peam Ta on October 2.
The government forces seized weaponry, five tanks, 100 trucks, 50 tractors and 500 bags of rice when the two bases were captured.
It was reported that after the fall of Samlot, five Khmer Rouge leaders--Nuon Chea, Son Sen, Ny Korn (Son Sen's brother), Ta Muth (Ta Mok's Son-in-law), and Ta Tith fled across the border into Thailand on their way to Anlong Veng, the headquarters of Khmer Rouge leader Pol Pot in Preah Vihea province.
Cambodia's two Prime Ministers Norodom Ranariddh and Hun Sen wrote to Thai Prime Minister Banharn Silpa-archa on October 3, requesting assistance in capturing and returning them to Cambodia.
On October 4 Ny Korn, Ta Muth, and three other hardline Khmer Rouge commanders--Ta Tith, Ta Bith and Mit Sdech--along with 250 soldiers were reportedly arrested near the Thai border by the breakaway Khmer Rouge after the Thai military disarmed them and sent them back to Cambodia. They are being detained in Pailin.
Five Khmer Rouge divisions based in areas around the border of Battambang and Pursat provinces and close to Samlot defected on October 4 to the Royal Government of Cambodia's forces. They brought with them about 700 Khmer Rouge fighters, nearly 4,000 civilian dependents and a large quantity of weapons. They decided unconditionally to merge with the Royal Cambodian Armed Forces.
Defecting commanders told reporters they did not want to fight anymore, but want reconciliation with the Royal Government, and return and live in Cambodian society. They also contradicted reports that Khmer Rouge leader Pol Pot is dead.
The defection will further weaken the hardline Khmer Rouge forces and will help secure the National Route 5 linking Phnom Penh to Battambang town.
Flooding caused by seasonal monsoons and heavy rains due to a typhoon hit the four Mekong River countries Cambodia, Vietnam, Laos, and Thailand.
In Cambodia, flooding hit provinces along Tonle Mekong Krom, Tonle Sap, and Tonle Bassac River, especially Rattanakiry, Steung Treng, Kratie, Kompong Cham, Kandal, Prey Veng, and Takeo provinces. It was reported that flooding killed at least 23 people, forced an estimated 1.3 million people to flee their homes, caused 500,000 to face food shortages, and submerged more than 568,000 hectares of rice fields.
The center of Kompong Cham was flooded on September 30. A state of emergency was declared in the country. The Royal Government, the Cambodian Red Cross, the National Committee for Disaster Management, the Ministry of Agriculture, the Phnom Penh municipality, and the provincial authorities have been making every efforts and using all means available at their disposal to help the victims. Emergency aid is being distributed in areas most severely hit by flooding.
In response to an appeal by the Royal Government of Cambodia for emergency assistance, the US Embassy in Phnom Penh donated US$25,000 and has asked for a special assessment team to travel to Cambodia to determine whether additional assistance could usefully be provided. Australia pledged A$575,000 (US$448,500) in aid. Japan and Britain also responded with aid pledges.
The waters began to recede on October 3. Final damage is still being assessed.
On behalf of the Royal Government of Cambodia, of the Cambodian victims and in my own name, I am very grateful and would like to express my profound thanks to Cambodian compatriots and American friends for your noble feeling and donations to our compatriots at a time when the nation faces this terrible disaster.
Your positive response to the Embassy's appeal for flood relief to help the victims is most appreciated by the Royal Government of Cambodia and the Cambodian people.
May I assure you that your donations will be used in helping the Cambodian victims in this painful occasion.
Yours sincerely, Var Huoth Ambassador
On October 2, 1996, the Royal Embassy made an appeal for flood relief assistance and set up a special bank account "Cambodian Flood Relief #17231219" at Riggs Bank in Washington DC for donations to help the flood victims. As of October 23, the Embassy has received $1,210 from Cambodian compatriots and American friends.
The statement made by President Clinton on the signing day read as follows:
Beginning of quotation
Today I am pleased to sign into law H.R. 1642, a bill to extend most-favored-nation (MFN) status to Cambodia after a bilateral trade agreement between the United States and Cambodia has entered into force.
This legislation is an important milestone in US-Cambodian relations.
The United States was a major supporter of the United Nations Transitional Authority in Cambodia (UNTAC), a peacekeeping success that led to free and fair elections in 1993 and the establishment of the Royal Govenment of Cambodia.
The United States supports efforts in Cambodia to strengthen democratic institutions, promote human rights, and foster economic development.
Most-favored-nation status will make it possible for Cambodia's private sector to realize its full development potential and will further improve the access American firms enjoy in Cambodia. United States export financing programs now will be able to go forward to the extent possible under the criteria established by relevant governing statutes. MFN will open the door to significant future opportunities as Cambodia seeks to join the Association of South East Asian Nations (ASEAN) and takes steps to integrate itself into the dynamic regional economy of Southeast Asia.
My approval of this legislation reflects the strong U.S. support for the people of Cambodia in their efforts to overcome a tragic past and establish a democracy based on human rights and market economy reforms.
While I recognize that the process of democratization and development in Cambodia has not been easy, I believe MFN status will make an important contribution to achieving our policy goals for a peaceful, prosperous, and free Cambodia. I am confident that with the support of the international community, Cambodia will continue to make progress and strengthen its efforts at economic reform and greater protection of human rights.
End of quotation
It should be recalled that in 1994 Cambodia and the United States concluded a bilateral trade agreement that allowed Cambodia to be considered for granting MFN trade status by the US Congress.
On July 11, 1995, the US House of Representatives passed legislation (H.R. 1642) providing Cambodia unconditional MFN status. The bill was then referred to the Senate Committee on Finance. (on July 12, 1995)
On August 1, 1995, the International Trade Subcommittee of the Senate Committee on Finance held a hearing on the Cambodia MFN bill, during which it received testimony in favor of granting Cambodia unconditional MFN status.
On May 8, 1996, the Senate Committee on Finance passed the bill with an amendment to the version of the legislation.
On July 25, 1996, the full Senate passed H.R. 1642 to extend unconditional MFN status to Cambodia, after agreeing to a Finance Committee amendment. The bill was then referred to the House.
On September 12, 1996, the House agreed to the Senate amendment.
* VISIT OF H.E. MR. UNG HUOT TO WASHINGTON, D.C.The Minister, accompanied by H.E. Mr. Var Huoth, Ambassador of the Kingdom of Cambodia to the US, H.E. Dr. Chem Widhya, Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation, and other officers of the Ministry and the Embassy, had a breakfast meeting sponsored by the US-Cambodia Business Committee of the US-ASEAN Council and Exxon Exploration Company. Also present at the meeting were Mr. Ernest Z. Bower, President of US-ASEAN Council, Ms. Jean L. Cole of Exxon Corporation, Senior Staff members in the offices of Senator William Roth and Senator John McCain, and representatives from Nations Bank, Asian Investment Strategies, Inc., Motorola, Inc., World Bank, The State Affairs Company, International Finance Corporation, and Black & Veatch International, Inc. The Minister briefed the meeting on the current situation in Cambodia and the impact of the recently successful discussion between Cambodian government and the Khmer Rouge breakaway faction on the peace, stability and business climate in the country.
Both the US Senate and the House of Representatives were in recess, but the Minister was able to meet with Senator John McCain (R-Arizona). He also met with Director of Peace Corps, Mr. Mark Gearan, US Agency for International Development (USAID) Acting Assistant Administrator for Asia and Near East, Mr. Charles Weden, and Dean of the School of Foreign Service of University of Georgetown, Ambassador Robert Gallucci.
The Minister also had a family meeting at the Embassy with members of the Cambodian community from Washington, D.C., Maryland, and Virginia.
Before leaving Washington, D.C. for New York, the Minister granted a live interview to Voice of America and a telephone interview to Cambodian language Thansour Thmey Radio based in Seattle, Washington.
It should be noted that before visiting Washington, D.C., Minister Ung Huot had met in New York on September 23 with Under Secretary of State for Political Affairs, Mr. Peter Tarnoff, as part of the program of his visit to Washington, D.C. He also attended a reception offered by Secretary of State Warren Christopher.
* CAMBODIA-US TRADE AGREEMENT SIGNEDDuring the ceremony, Minister Prasidh, on behalf of the Royal Government of Cambodia, handed over to Ambassador Charlene Barshefsky, an official request for designating Cambodia as a least-developed beneficiary developing country under the provisions of the United States Generalized System of Preferences (GSP). Ambassador Barshefsky promised to begin processing the request as quickly as possible. The two countries are also committed to beginning the process of a bilateral investment treaty between the two governments.
It should be noted that the signing of the Trade Agreement satisfied the legal requirement of a reciprocal MFN trade agreement following the passage by the US Congress of a bill to extend MFN trade status to Cambodia and the signing of this bill into law by President Clinton. The Trade Agreement will be in force after the exchange of written notice of acceptance by the two countries of the rights and obligations set out in the Agreement. MFN status for Cambodia will legally go into force on the date of a notice published in the Federal Register by the US Trade Representative. These two steps are expected to be done very soon.
The Trade Agreement is a milestone for economic relations between Cambodia and the United States. It opens the way not only for investors, businessmen, and enterprises from the United States, but also from other countries to come to Cambodia and explore mutually beneficial opportunities for investment.
Cambodia expects investment in the garments, canned food, foodstuffs, and light manufacturing sectors. The garment industry will likely be the primary beneficiary of MFN. Representatives from 39 Taiwanese garment and textile companies and from 20 Hong Kong garment companies are exploring opportunities in the country. Singapore and Malaysian investors have also shown an interest in the sector. Chairman of the Garment Manufactures Association in Cambodia, Mr. Van Sou Ieng told reporters that he predicted investment in the garment industry will reach $200 million in two years, up from $70 million currently. It will create employment opportunities for over 100,000 Cambodians. The garment exports will reach $500 million over the next two years, up from an expected $58 million for 1996.
* US-FUNDED BRIDGE INAUGURATEDThe construction of the two-lane Pursat Bridge in Pursat province, stretching 120 meters, was funded by US Agency for International Development (USAID) at a cost of US$600,000. It was built by the Attantis Corporation of Thailand, under the auspices of the Cambodian Ministry of Public Works and Transport.
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