-sees ex­panded use of cur­ren­cies of both coun­tries

Stabroek News Sunday - - STABROEK NEWS -

The Mem­o­ran­dum of Un­der­stand­ing (MoU) be­tween the Gov­ern­ments of Guyana and China on the Silk Road Ini­tia­tive and its mar­itime com­po­nent en­com­passes free mar­ket prin­ci­ples and en­vis­ages the ex­panded use of the lo­cal cur­ren­cies of the two coun­tries.

The MoU signed on July 27, 2018 was fi­nally re­leased by the Min­istry of For­eign Af­fairs on Tues­day, Oc­to­ber 30.

It con­tains 15 clauses in six ar­ti­cles which out­line the ar­eas of co-op­er­a­tion be­tween the two coun­tries within the frame­work of the Silk Road Eco­nomic Belt and the 21st Cen­tury Mar­itime Silk Road Ini­tia­tive.

Ac­cord­ing to the doc­u­ment, in recog­ni­tion of the po­lit­i­cal con­sen­sus to jointly pro­mote the Belt and Road ini­tia­tive the two coun­tries have de­cided and agreed to co­op­er­ate in the ar­eas of pol­icy co-or­di­na­tion, fa­cil­i­ties con­nec­tiv­ity, unim­peded trade and fi­nan­cial in­te­gra­tion.

Specif­i­cally, the pro­vi­sions call for the two coun­tries to reg­u­larly com­mu­ni­cate and pro­mote the syn­ergy and in­te­gra­tion of their ma­jor de­vel­op­ment strate­gies, plan­ning and poli­cies as well as strengthen com­mu­ni­ca­tion and co­or­di­na­tion of the re­spec­tive im­por­tant or ma­jor pol­icy frame­work.

“Par­ties will co-op­er­ate and ex­change ideas re­gard­ing in­fra­struc­ture con­nec­tiv­ity and de­vel­op­ment in ar­eas of mu­tual in­ter­est, in­clud­ing roads and rail­way net­works, bridges, civil avi­a­tion, mar­itime trans­port, har­bours and ports, en­ergy and telecom­mu­ni­ca­tions,” the MoU ex­plains.

It fur­ther pro­vides for the two coun­tries to en­hance in­ter­na­tional trade and in­vest­ment ini­tia­tives and ex­pand twoway in­vest­ment and trade flows be­tween them, fur­ther deepen in­vest­ment, trade and in­dus­trial co­op­er­a­tion and en­cour­age their busi­nesses to build, op­er­ate and/or par­tic­i­pate in in­dus­trial pacts and eco­nomic and trade co­op­er­a­tion zones.

In the area of fi­nan­cial In­te­gra­tion the par­ties are tasked with ex­pand­ing the use of their re­spec­tive lo­cal cur­rency in in­vest­ment and trade based on the in­vest­ment and trade de­mands, strength­en­ing the ex­changes and co­op­er­a­tion be­tween their cur­rency and fi­nan­cial reg­u­la­tors and pro­mot­ing the mu­tual estab­lish­ment of the fi­nan­cial in­sti­tu­tions be­tween the two coun­tries.

In or­der to re­al­ize this pro­vi­sion a co­op­er­a­tion mech­a­nism will be es­tab­lished to han­dle and man­age fi­nan­cial risks and crises as well as in­crease co­op­er­a­tion be­tween the bank­ing sec­tor and

in­sti­tu­tional in­vestors.

Ad­di­tion­ally the par­ties may con­clude co­op­er­a­tion agree­ments on ed­u­ca­tion, cul­ture, health, tourism, pub­lic wel­fare or other rel­e­vant fields.

The MoU fur­ther spec­i­fies dif­fer­ent modes through which this co­op­er­a­tion may be re­al­ized in­clud­ing high­level vis­its through ex­ist­ing ex­change mech­a­nisms, bi­lat­eral co­op­er­a­tion, free mar­ket prin­ci­ples and the pro­mo­tion of pub­lic-pri­vate part­ner­ships as well as the pro­vi­sion of in­vest­ment and fi­nanc­ing sup­port through di­ver­si­fied channels and other agree­ment or pro­to­cols for co-op­er­a­tion in spe­cific fields.

The doc­u­ment also pro­vides for the set­tle­ment of dis­putes through am­i­ca­ble and friendly con­sul­ta­tion via diplo­matic channels as well as the length of the agree­ment which is set at three years with au­to­matic re­newals of three-year pe­ri­ods in­def­i­nitely un­less ter­mi­nated by ei­ther party via a writ­ten no­tice at least three months in ad­vance.

It is un­clear why the doc­u­ment was not re­leased on July 27th when it was signed.

For­eign Af­fairs Min­is­ter Carl Greenidge (right) and China’s Am­bas­sador to Guyana, Cui Jianchun af­ter the sign­ing.

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