On debt row: US loan to Lon Nol gov’t like noose to Cambodia

[geovalin]

Nearly 50 years after the Khmer Republic Government owed hundreds of million dollars over loans for food supplies to feed the country, the issue remains unsolved and United States Ambassador Patrick Murphy yesterday said he would love to see the progress on the war debt, which has grown to more than half a billion dollars. The Cambodian People’s Party yesterday said it still considers it as a “dirty debt”, saying the government would love to see the US cancel or at least convert the debt into humanitarian aid.

 

As it was busy fighting with Khmer Rouge guerillas in the 1970s, the US-backed Lon  Nol government was given $274 million to buy rice, wheat, oil and cotton. The current debt includes interest accrued on this original loan. When asked about the loan during a media roundtable held at the US embassy in  Phnom Penh yesterday, Murphy said the debt has grown to over $600 million, saying it is a “bilateral debt issue.”

 

“Any government assumes debt responsibility. That’s the nature of governance and that’s in accordance with international standards,” he said. “It is an issue. I would love to see the result, but in order to resolve a debt issue both sides have to have good faith and have to have a good environment in the relationship to make some progress.” Murphy said debt is a serious issue in the US Congress and plays a role in policy. He said Cambodia has more significant debts with other countries than with the US.

 

read more https://www.khmertimeskh.com/50773720/on-debt-row-us-loan-to-lon-nol-govt-like-noose-to-cambodia/

[Redline]

Maybe China can loan money for repayment of the loan?

[Scott Tracy]

I thought there's not much more infrastructure the Chinese don't own.

[connda]

And all we hear in the news is "China makes debt slaves out of the world's smaller countries." 
Yet some one else still has a financial knee on the Khmer neck after 50 years.  Funny that, 'eh?

Edited October 16, 2020 by connda