Chinese Foreign Minister Yang Jiechi announced in Sharm El Sheikh on Thursday morning that the Chinese government will give a grant of 50 million yuan of RMB ( about 6.5 million U.S. dollars) to Iraq in 2007 and forgive all the debts owed by the Iraqi government.

The sum will be used to provide assistance in Iraq's public health and education, Yang said at a ministerial meeting of the International Compact with Iraq (ICI) opened in the day at this Egyptian Red Sea resort.

"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," he said.

Yang, who was named as Chinese foreign minister on April 27, also said China is ready to resolve through continued friendly consultation with Iraq the issue regarding its request for debt reduction and forgiveness according to the arrangement of the Paris Club.

Yang, who arrived at this Red Sea resort on Wednesday afternoon, was on his first international mission after he replaced retired Li Zhaoxing as Chinese foreign minister.

The ICI meeting, with the attendance of some 60 nations and 12 regional and international organizations, was the largest international meeting on Iraq ever since the U.S.-led coalition forces seized Baghdad in April of 2003.

The ICI was initially launched on July 28, 2006, in the hope of creating "a permanent partnership between Iraq and the international community" to help Iraq in its reconstruction efforts and to pursue political, economic and social development over the next five years.

The initiative, with strong support from the United States, looks like a type of five-year plan for Iraq, yet it is also based on economic, political and security commitments by the Iraqi government in the next five years.

The ICI is supposed to be chaired jointly by Iraq and the UN, with the support of the World Bank.

Source: Xinhua