Sharm El-Sheikh, Egypt
3 May 2007

Your Excellency Prime Minister Nuri al-Maliki,
Your Excellency Secretary-General Ban Ki-moon,
Dear Colleagues,

On behalf of the Chinese Government, I wish to offer warm congratulations on the opening of the High-level Event to Launch the International Compact with Iraq (ICI).

At the International Conference on Iraq which was successfully held here three years ago, consensus was reached to help Iraq restore stability and hold general election. The conference impacted positively on the political process in Iraq. Today, we are meeting here again in this "City of Peace" to launch the ICI. This is another crucial stage in Iraq's reconstruction process.

China supports the ICI which serves as a blueprint for Iraq's future development and reconstruction and defines its partnership with the international community. I wish to state China's following four-point position on the implementation of the ICI:

First, we should coordinate our efforts to form synergy. The international community and international organisations need to increase consultation and coordination in assisting Iraq so as to ensure that assistance from different sources to the Iraqi people is provided in a coordinated way. We support the United Nations in continuing to play a leading role in this effort. The Iraqi Government should work with the international community and assume responsibility for its own national security at an early date so as to create a security environment of peace and stability to implement the ICI.

Second, we should promote balanced and comprehensive progress in all areas. The ICI covers many areas which are closely inter-related. There should be a proper balance among efforts to promote dialogue and reconciliation among Iraqi groups, human rights and the rule of law, economic and social reform, the proper allocation of resources and the provision of basic services to ensure progress in all these areas.

Third, we should deliver on promises and ensure that commitments are translated into actions. As an old Chinese saying goes, "To give a man a fish is not as good as teaching him how to fish." In launching the ICI, the international community should deliver on their promises to assist Iraq's reconstruction and help Iraq to stand on its feet and develop the capacity for self development so that all the Iraqi people will be able to enjoy peace and development at an early date.

Fourth, we should strengthen oversight. A fair and transparent environment will encourage all parties to take part in Iraq's reconstruction. China supports conducting regular evaluation of progress in Iraq's reconstruction and in providing international assistance to Iraq on the basis of respecting its sovereignty and independence and according to relevant ICI principles and requirements to ensure the success of such efforts.

Dear Colleagues,

China is committed to Iraq's reconstruction process and has provided assistance as its ability permits. It is delivering on its commitments on assisting Iraq's reconstruction. Here I would like to announce that the Chinese Government will give a grant of RMB50 million yuan to Iraq this year for providing assistance in public health and education. The Chinese Government is ready to substantially reduce and forgive the debts owed by Iraq. In particular, it will forgive all the debts owed by the Iraqi Government. We have taken note of Iraq's request for debt reduction and forgiveness according to the arrangement of the Paris Club, and we are ready to resolve this issue through continued friendly consultation with Iraq.

Dear Colleagues,

The Euphrates and Tigris rivers were cradle of splendid ancient civilizations. We hope and believe that the Iraqi people, with their wisdom and courage, will make progress in national reconciliation, peace and stability, respect for human rights and economic development. We are confident that with the support of the international community, the ICI will help open a new chapter in promoting Iraq's development and reconstruction.

Thank you.