China envoy: No dark side in aid

MANILA, Philippines - China disputed claims that Chinese aid to the Philippines has a “dark” side, saying their assistance has been sincere, efficient and helpful to the development of the country.

Chinese Ambassador Liu Jianchao said Monday night that China would continue to provide concessional loans to the Philippines, which he described as the largest recipient of concessional loans from his country.

“I can’t see any of that sign (dark side) of our assistance to the Philippines because our assistance has been sincere, efficient and it’s really helpful to the development of the country and the improvement of people’s livelihood,” Liu told The STAR.

The Philippines and other developing countries have received billions in assistance, loan and investments from China which is seen as a factor in the deepening relationship of the two countries.

But China’s motive was questioned because of alleged non-transparent aid and implicit conditions for recipients of its assistance.

US Ambassador Harry Thomas Jr. said Washington considers China’s stronger presence in the Philippines as an opportunity but its intentions should be “transparent.”

Liu said there were arguments between China and the Philippines over some projects that have become learning experiences to always do what is right.

“So we are confident and we will not let anything unfortunate that happened in the past to hinder our future cooperation. I think we are in the right direction and such a strong relationship will continue to benefit our two countries,” Liu said.

“And our intention here is clear. The Chinese have been here for a thousand years so for the last 1,000 years and in particular the last 35 years, diplomatic relations were established, our intentions to make friends and partners,” he added.

He said China has been working with many countries and the understanding and trust have been increasing and the win-win cooperation has also been strengthened in difficult times like the financial crisis.

In providing concessional loans to the Philippines, Liu identified power generation and infrastructure as among the priority areas for the loans.

“We have to work with the Philippine government on where the money will go. At the same time, I think we really like to see what the Philippines needs but to me it is basically areas like power generation, infrastructure, construction. So these are areas where you need financing, money and assistance,” he said.

In his remarks during the celebration of the 35th anniversary of the establishment of diplomatic relations between China and the Philippines at the Makati Shangri-La Hotel, Liu said constructive and productive meetings on a regular basis between the top leaders of the two countries over the past 35 years have been indispensable in advancing bilateral ties.

In 2005, President Hu Jintao and President Arroyo launched common efforts in building a bilateral relationship based on strategic cooperation for peace and development.

Hu said business ties have always been a driving force behind the sound development of Philippine-China relations.

Trade volume over 35 years has surged 300-fold from $72 million to more than $20 billion in 2009.

Liu said it is more encouraging because trade volume in the first quarter of 2010 registered a quarter-on-quarter increase of 51.6 percent, hitting $6 billion.

He said the presence of all seven Philippine resident diplomatic missions in China really shows the political commitment of the Philippines to a better and stronger bilateral relationship with China.

The 35th anniversary of Philippine-China diplomatic relations, he said, has already witnessed smooth national elections in the Philippines.

Not fearful

Meantime, the United States is not fearful of the possible decline of its influence on the Philippines with the increased level of Chinese assistance.

Ambassador Thomas said America’s relationship with Philippines is deep, long and tremendously improving.

“We are not fearful of anything here. We are optimistic about our relationship with the Philippines. We have nothing but hope for the Philippines, our relationship and we know that with transparency, opportunity for all, and education, this country will continue to bloom,” Thomas said in a chance interview during the celebration of the 35th anniversary of the Philippine-China diplomatic relations.

Thomas said in an interview with the Center for Strategic and International Studies that Washington does not see China’s strong presence in the Philippines as a problem, but its intentions should be transparent.

“We look at military relations, we look at all the American companies that are coming here, we look at how long our trading partnership with the Philippines has been and that is what is important to us,” Thomas said.

“I think we all want transparency. One of the things the President-apparent has spoken so eloquently about is transparency, eliminate corruption, opening markets and that is what we are supporting. And I think that the Filipino people have expressed that no matter what comes to you, there will be transparency, an open and fair way,” he added.

Thomas was the first ambassador to call on President-elect Benigno “Noynoy” Aquino III after the May 10 elections.

Both countries vital

Malacañang, for its part, said yesterday it was not bothered by the exchanges between Thomas and Liu over their respective countries’ intentions in the Philippines. - With Paolo Romero