China agrees to cancel Iraqi debt

(Xinhua/Reuters)
Updated: 2007-06-21 21:10

China and Iraq on Thursday signed four agreements in Beijing, including one about exemption of Iraqi debt, as Iraqi President Jalal Talabani pays his state visit to China.


China's President Hu Jintao (L) and Iraq's President Jalal Talabani review the honor guard during a welcoming ceremony outside the Great Hall of the People in Beijing June 21, 2007. Talabani is on a week-long trip to China. [Reuters]

Chinese President Hu Jintao and Talabani attended the signing ceremony of the agreements after they held one-hour talks in the Great Hall of People.

"China has always been supportive and has participated in the rebuilding of Iraq," foreign ministry spokesman Qin Gang told a regular news conference.

"We will reduce or forgive Iraq's debt on a large scale, and help it to train people in the fields of economics, electrical power, diplomacy and management," Qin said, adding that Chinese companies were also willing to participate in the rebuilding.

He did not elaborate on debt figures.

Commerce Minister Bo Xilai later signed an agreement with Iraqi officials to cancel the debt owed the Chinese government. But no further information is available about how much Iraqi debt owed to China will be forgiven.

"We hope Iraq can restore stability, safety and development as soon as possible," Qin said.

China donated 50 million yuan (3.3 million pounds) of aid to Iraq in May, he said.

The other three agreements involve cooperation between the two foreign ministries, economic and technical cooperation, human resources training program.

Talabani arrived in Beijing Wednesday evening, starting the first China visit by a Iraqi president since the two countries forged diplomatic ties in 1958.

Talabani will meet China's President Hu Jintao, Premier Wen Jiabao and top legislator Wu Bangguo.

($1=7.620 Yuan)



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