Mugabe and Hu sign economic cooperation deal

July 27, 2005

President Hu Jintao and his Zimbabwean counterpart, Robert Mugabe, have signed an agreement on economic cooperation, building on ties at a time the debt-laden, isolated African state is seeking new sources of aid.

 

Neither side gave details of the economic and technical cooperation agreement and other pacts on the provision of computer equipment and cooperation between the two countries' justice departments.

Mugabe's spokesman has said the government is exploring lines of credit with countries such as China as it grapples with triple-digit inflation, an unemployment rate above 70 percent and about US$4.5 billion (HK$35.1 billion) in foreign debt.

``You have made major contributions to the friendly relations between our two countries ... I stand ready to have an in-depth exchange of views with your excellency on our bilateral relations,'' Hu said at the start of their meeting.

Beijing sold a locally-made 60-seater plane to Harare, the official Xinhua News Agency said. It gave no dollar figure.

China also signed a memorandum of understanding to finance construction of a power plant in Zimbabwe, Xinhua said. It gave no further details.

The Zimbabwean delegation includes the central bank governor, finance minister and Foreign Minister Simbarashe Mumbengegwi, who met his mainland counterpart, Li Zhaoxing, Tuesday.

Li called the visit ``a symbol of the deepening of bilateral traditional friendship'', Xinhua said.

Mumbengegwi expressed gratitude for the aid the mainland has offered since Zimbabwe's independence in 1980.

Mugabe's visit to the mainland comes at a time when he is increasingly isolated from the West over policy differences, including his government's forcible redistribution of white-owned commercial farms to blacks and a controversial drive to clear slums

New Zealand, which is leading a drive to isolate Zimbabwe in sport because of concerns over human rights abuses, said last week it wants China to ensure that any aid it gives does not directly benefit Mugabe.

The International Monetary Fund and the World Bank have withheld fresh support for the country since 1999, aggravating the country's economic crisis. Mugabe, who has held power since his country's independence from Britain, denies critics' accusations that his policies have destroyed Zimbabwe's economy. Mugabe arrived in Beijing Saturday and toured the northeastern province of Jilin, visiting the headquarters of First Automotive Works Group, China's top vehicle maker.

He is to meet Premier Wen Jiabao, and Wu Bangguo, the number two in the Communist Party hierarchy, today.REUTERS