China pledges $5 mil. to cooperation fund with ASEAN

Asian Economic News, Dec 13, 2004

VIENTIANE, Nov. 29 Kyodo

China pledged Monday to contribute $5 million to the ASEAN-China Cooperation Fund next year, the two sides said in a statement Monday after annual talks between Chinese Premier Wen Jiabao and leaders of the 10-member Association of Southeast Asian Nations.

ASEAN officials said China also pledged to set up another special fund of $15 million for Chinese ministries to participate in various forms of cooperation with ASEAN countries.

China will also give another $200,000 to the ASEAN-plus-three unit in the Jakarta-based ASEAN Secretariat, according to an ASEAN official who spoke on condition of anonymity.

Although the amount of money pledged by China is not huge, the ASEAN countries see the pledge as a goodwill gesture on the part of China to further promote relations, the official said.

''ASEAN leaders welcomed China's intention to contribute another

$5 million to the ASEAN-China Cooperation Fund in 2005,'' said the statement issued by Lao Prime Minister Bounnhang Vorachith, chairman of the ASEAN-China summit.

ASEAN leaders also expressed support for China's proposal for commemorating the 15th anniversary of bilateral relations, according to the statement.

China proposed setting up an eminent expert forum to come up with recommendations to further enhance bilateral ties which have already embraced political, economic and social aspects of the rapidly expanding relationship.

ASEAN foreign ministers first invited their then Chinese counterpart Qian Qichen to meet in Malaysia in 1991. The dialogue relationship with ASEAN was formally established in 1996.

On trade, the Chinese premier and ASEAN leaders signed Monday a free-trade agreement that will phase out tariffs on most goods traded between them during the five-year period starting in July 2005.

ASEAN and Chinese trade officials will also pursue negotiations on services and investment liberalization, ASEAN officials said.

Wen also agreed with his counterparts that it is Asia's turn help an Asian assume the post of the United Nations secretary general, according the chairman's statement.

China was ''pleased to be informed'' of ASEAN's endorsement of the candidacy of Thai Foreign Minister Surakiart Sathirathai, the statement added.

Surakiart is a lawyer by training and has been Thailand's foreign minister since 2001.