CHINA TO PROVIDE US$15 BLN COMMERCIAL CREDIT TO ASEAN

By D. Arul Rajoo

PHUKET, July 21 (Bernama) -- China plans to provide US$15 billion commercial
credit to Asean, including US$1.7 billion preferential loans to the regional
grouping, in the next three to five years.

In a joint communique issued at the end of the 42nd Asean Foreign Ministers
Meeting (AMM) here, the ministers also appreciated China's active role in
developing transportation infrastructure between the country and Asean.

The 10 ministers said they welcomed the establishment of the US$10 billion
Asean-China Fund for Investment Cooperation which would significantly contribute
to the completion of transportation links in the region.

Both are expected to sign the Asean-China Investment Agreement at the Asean
Economic Ministers Meeting in Bangkok next month.

"Upon the completion of the Asean-China Free Trade Area, we believe that
there is a need to explore ways and means to further strengthen Asean-China
economic cooperation in all dimensions," the ministers said.

Asean looked forward to the launching of the Chiang Mai Initiative
Multilateralisation with a total fund of US$120 billion by the end of 2009.

The grouping also appreciated Japan's financial contribution of US$62
million to the Japan-Asean Integration Fund as emergency assistance to members
affected by the global economic slowdown as well as US$13.5 million for
cooperation on disaster management.

On Asean dialogue partner South Korea, the ministers said they agreed to
enhance their cooperation with the republic to realise the various targets set
forth by leaders, including the increase in two-way trade volume to US$150
billion by 2015 through their free trade agreement.

"We welcome Korea's initiative to establish the US$200 million East Asia
Climate Change Partnership Fund and its commitment to allocate US$100 million
from this fund to the Asean member states to deal with climate change," the
ministers said.
-- BERNAMA