Fiji turns to China for funding

Nations say they will cut off aid to military government if democracy not returned.

    The Fijian economy relies heavily on foreign aid [AFP]
    During his visit to Fiji last year, Wen Jiabao, the Chinese premier, announced that Beijing has set aside $600m in soft loans to Pacific Island states for development projects.

    Donor states have demanded that Fiji return to democratic government by holding elections no later than early in 2009, or face cuts in support.
     
    In May, the EU warned it could cut aid, including the $170m for restructuring the South Pacific island's ailing sugar industry, if the government delays returning the country to democracy.
     
     

    SOURCE: Agencies


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