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Wednesday, October 03, 2007
Palace: China understands suspension of ZTE deal
MANILA –- Malacañang said Tuesday China “understood perfectly well” why President Gloria Macapagal-Arroyo suspended the implementation of the $329.4-million National Broadband Network (NBN) project with Chinese firm ZTE Corporation.
Press Secretary Ignacio Bunye said in an interview in Shanghai, China that the ZTE issue was taken up in the 30-minute bilateral talks between Arroyo and Chinese President Hu Jintao.
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Arroyo left for China early Tuesday morning onboard PAL chartered flight PR 001. Her delegation included Foreign Affairs Secretary Alberto Romulo, Trade Secretary Peter Favila, Press Secretary Ignacio Bunye, and Agriculture Secretary Arthur Yap.
Bunye said it was Arroyo who initiated the explanation by saying that relations between the Philippines and China are based on courtesy and respect. He said the President then explained to Hu the reasons for the suspension of the contract.
He said the Chinese leader “understood perfectly well the situation.”
Bunye said the controversy will not affect the relations between the two countries because Trade Secretary Favila has explained the matter to the Chinese officials through backchannel discussions.
President Hu said the good relationship between the Philippines and China would continue blooming even with Arroyo's "difficult decision" to cancel the ZTE deal.
"The President (Arroyo) explained the difficult decision not to continue with the NBN contract and the President counted on the good relations between our two countries for understanding. We are gratified that President Hu offered understanding when he said that our relationship is in very good shape and the Philippines has been a great ally," Bunye said. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Bacolod. (October 3, 2007 issue)
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