No debt in China deal
Prime Minister Mark Brown
The comprehensive deal the Cook Islands will sign with China in the coming week will not involve any borrowing, the Prime Minister confirmed this week.
In an interview with Cook Islands News, PM Mark Brown, who left yesterday with his delegation for a state visit to China, said the deal will focus on key areas of development such as shipping, maritime, agriculture and seabed minerals.
Brown said that once the two countries have signed the Joint Action Plan for a Comprehensive Strategic Partnership, they will announce it to the public.
His comments come after concerns were raised by New Zealand, with which the Cook Islands shares a special constitutional relationship, and the general public regarding the “secrecy” of the deal.
When asked if the China deal will include loans, the Prime Minister responded “no”.
Of the estimated $253.8 million (gross) public debt, the China-based Asian Infrastructure Investment Bank (AIIB) provided $28.4m, representing 11 per cent of total borrowings, followed by the EXIM Bank of China with $18.2m or 7 per cent.
In shipping, Brown said that they would be discussing the procurement of a vessel to strengthen the country’s domestic shipping.
“That’s something I’ve been working on since last year and the details of that will come out when we visit the companies that will be involved,” Brown said.
“There are areas of agriculture that we’ll be addressing and maritime, in terms of aquaculture and fisheries.”
Brown said the state visit would be a “jam-packed four or five days” of engagement, lasting until Friday.
The Prime Minister is scheduled to meet with the Chinese Premier Li Qiang.
When asked if he would have a chance to meet with Chinese President Xi Jinping, Brown replied “we’ll see if that transpires as well”.
PM Brown’s delegation will include his wife, Daphne, Tukaka Ama, Associate Minister for Foreign Affairs and Immigration and Finance and Economic Management, his chief of staff Karopaerangi Ngatoko, alongside senior officials from Foreign Affairs and MFEM.
“They (China) will cover my costs and some officials internally through China. I’m not sure if they’re covering the whole team’s costs but there is an allocation they’ll cover,” Brown said.
Meanwhile at the Waitangi Day celebration on Thursday hosted by the NZ High Commission, Prime Minister Brown said he understood that people want to be fully informed about the direction of the country and acknowledged those concerns.
“Our government is committed to open and honest dialogue, because transparency is not just an expectation; it is a fundamental principle of good governance,” Brown said.
“Any agreements we enter, whether with New Zealand, China, or any other partner, will always be made with the best interests of the Cook Islands at heart. And we will ensure that our people remain informed every step of the way.”
Written by Rashneel Kumar | Published in Economy, Local, National