Cambodia to again ask the U.S to cancel debts

By Khmerization

Source: RFA

Cambodia plans to again ask the U.S to cancel more than $300 million of debts owed by the Khmer Republican regime in the 1970s when Foreign Minister Hor Namhong (pictured) meets visiting U.S Secretary of State Hillary Clinton today in Phnom Penh.

Mrs. Hillary Clinton is on a 2-day official visit to Cambodia and will engage in discussions on a wide range of issues, and Foreign Minister Hor Namhong said one of the issues discussed with Mrs. Clinton will be the issue of debt cancellation. "We will discuss about the debt cancellation and Cambodia's official stance is that we will put forward this proposal to Mrs. Hillary Clinton. I have met her once before last year in New York. I have raised this issue at that time. (This time) we will inform her of Cambodia's clear position about this issue", he said.

The issue of debt cancellection has been an ongoing issue between Cambodia and the U.S. Cambodia has asked the United States on several occasions for the cancelletion of this debt, but the U.S government has so far rejected Cambodia's request. Prime Minister Hun Sen had insisted that the U.S cancel this debt because he considers it a "filthy debt".

The Khmer Republican regime of Marshall Lon Nol borrowed $160 million from the U.S in the early 1970s to fund his fledgeling regime and to fight a civil war against the Khmer Rouge movement. However, after nearly 40 years on, the debt has increased to more than $300 million due to the interest charged.