China gives $1.5b in aid to East Timor

Posted 4 hours 30 minutes ago

China and East Timor signed $1.57 billion in cooperation agreements, officials from both countries said.

The deals were signed following talks between East Timorese Prime Minister Xanana Gusmao and visiting Chinese Deputy Foreign Minister Wu Dawei, the highest Chinese official to visit the country so far.

Mr Gusmao told journalists after the meeting that the signing covered agreements on economic and technical cooperation, the construction of a headquarters for the national armed forces and housing for soldiers, and the purchase of equipment for East Timor's foreign ministry.

"Another form of support is that China is opening up, allowing us to send our exports exempt of tax," he said.

"Therefore we will try to produce whatever we can export to China, so that we can develop our country further."

Mr Wu, who arrived for a three-day visit in East Timor earlier today, is scheduled to meet House Speaker Fernando Lasama and the head of parliamentary factions on Wednesday, officials at the prime minister's office said.

- AFP