NADI, Fiji: China announced a wide-ranging package of economic aid to South 
Pacific island countries yesterday as part of efforts to strengthen relations. 
Besides 3 billion yuan (US$375 million) in preferential 
loans over the next three years, Beijing will grant zero-tariff treatment to 
goods from the islands, cancel their debt that matured at the end of 2005 and 
make the seven island states with diplomatic ties approved tourist destinations. 
 
 
 | 
    Fijian Prime Minister Laisenia Qarase (R) shakes hands with Chinese 
 Premier Wen Jiabao after a signing ceremony in Nadi, Fiji April 4, 2006 
 for bilateral agreements between the two 
 countries.[Reuters]
  | 
 
 
 
 
Premier Wen Jiabao made the announcement at the opening of the inaugural 
China-Pacific Islands economic development forum in Fiji. This is the first 
visit by a Chinese premier to the South Pacific. 
"China is not rich. Still, we are ready to provide assistance without any 
political strings attached," Wen said in a keynote speech at the forum. 
The country will also train 2,000 Pacific government officials and provide 
free anti-malaria medicines for the next three years. 
Fiji is the second leg of Wen's four-nation Asia-Pacific tour, which earlier 
took him to Australia. He arrived in New Zealand late yesterday and then goes to 
Cambodia. 
"Our economies are complementary," Wen said. "China has funding and 
expertise. The island countries are rich in natural resources. Herein lies huge 
potential for bilateral co-operation." 
Wen said China's interest in the region was "not diplomatic expediency; 
rather, it is a strategic decision." 
The two-day forum was co-sponsored by China and Fiji. 
An economic development and co-operation framework between China and the 
Pacific Island countries (PIC) was signed yesterday, marking a milestone in 
China-PIC ties. 
The framework highlights a number of key sectors with scope for co-operation, 
including agriculture and fisheries, tourism and transportation, financial 
services, engineering and infrastructure. 
Papua New Guinea Prime Minister Michael Somare, who is also the chairperson 
of the forum, said: "The framework will provide an impetus to trade between PIC 
and China, with an emphasis on stronger export performance from the forum island 
countries to China." 
According to Somare, Chinese investment in the Pacific islands is expected to 
increase to US$176.3 million by the end of this year, from US$113 million in 
2004. 
China has a growing business presence in the Pacific. There are more than 
3,000 Chinese State-owned and private enterprises, from mining ventures to 
restaurants. 
Other PIC members are Vanuatu, the Federated States of Micronesia, Tonga, the 
Cook Islands, Niue and Samoa. 
Later yesterday, Wen flew to Wellington where New Zealand Prime Minister 
Helen Clark greeted him at the airport. 
(China Daily 04/06/2006 page1)