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Croatia, China laud deepening ties
by Staff Writers
Zagreb, Croatia (UPI) May 15, 2012

disclaimer: image is for illustration purposes only

China and Croatia vowed over the weekend to strengthen economic and political ties as the two countries marked 20 years of diplomatic relations.

Croatian President Ivo Josipovic and Chinese counterpart Hu Jintao exchanged messages of congratulations Sunday on two decades of friendly international ties, which have included an ambition by Zagreb to serve as China's gateway to Eastern Europe.

The renewed commitment to stronger relations comes as Chinese shipping group COSCO is considering a $5 billion investment in the Croatian port of Rijeka with the aim of turning it into China's transport link to Europe -- its biggest trading partner.

In the weekend messages, Josipovic said Croatia was "a reliable friend for China in southeastern Europe" and predicted Beijing "would have one more partner and ally in the European Union" after Croatia's entry into the regional bloc in 2013, the state-owned Chinese news service Xinhua reported.

The Croatian leader said he hoped "Croatia and China would continue to advance their cooperation and further cement their friendship," which was officially launched May 13, 1992.

Hu said two decades of diplomacy between the countries had seen the development of "high-level exchanges, deepened political trust (and) expanded cooperation in economy and trade," while reaping "bumper harvests in cooperation in areas such as culture, education and tourism."

A big part of the two countries' relationship has been China's steadfast support for Croatia's accession to the European Union, which Beijing says will play a prominent role in promoting China-EU relations.

"I believe by joining the European Union, Croatia will create new opportunities for growth not only for Croatia but also other countries in the region while opening new space to cultivate the relations between China and the southeastern European nations," Hu said during a 2009 trip to Zagreb.

Already a popular destination for Chinese tourists, Croatia could also soon have thousands of Chinese workers in the country should COSCO follow through on its interest in the Adriatic port of Rijeka.

A Chinese labor force of up to 20,000 workers would be stationed there under plans discussed last month by top COSCO executives and Croatian Prime Minister Zoran Milanovic, multiple local reports indicated.

Milanovic said the details of a Chinese investment in Rijeka would be addressed in due time and assured residents any stationing of foreign workers would be done in accordance with the country's immigration laws, the Croatia daily Free Dalmatia reported.

"We are talking with the potential partners" about the $5 billion proposal, which would also include the rebuilding of a major railroad line between Rijeka, the capital Zagreb and the Hungarian border, the prime minister told reporters April 26 in Warsaw, when Chinese Prime Minister Wen Jiabao met with leaders of 16 Central and Eastern European countries.

But, he added, "nobody will get these jobs without a public tender that sets clear, transparent and predictable conditions."

"We are a state of law and will soon enter the EU," Milanovic said. "When we talk about any jobs, then the rule is public tender and bids for the concession, like every other business."

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Uruguay export link at risk from Argentina
Montevideo, Uruguay (UPI) May 15, 2012 - Uruguay's river transport export links are being put at risk because of Argentine delays that critics say are mired in corruption and business rivalries.

Uruguay depends on river transport to access export markets but the Latin American country also needs to keep the waterways dredged regularly to make sure vessels pass without hindrance.

In recent months Uruguay's trade is being hampered by delays in the dredging of the Plate River canal waters. The delay prevents ships from loading to capacity for fear of grounding in shallow waters.

At issue is the overdue dredging of the Martina Marcia canal on the Plate. Uruguayan media sources accused a Dutch company responsible for the dredging of being too close to Argentine officials.

The delays were part of a concerted effort by the Dutch operators of the dredging program to maintain pressure on Uruguay and to retain the business, the reports said.

Argentine officials were accused of trying to bribe Uruguayan government officials with a $1 million sweetener. Confronted with the offer, Uruguayan officials reported the incident to their government, causing the affair to come to light, news media reported.

Argentina responded by demanding a joint audit of the River Plate Administrative Commission but Uruguayan officials said the audit would delay further work to clear the canal and obstruct river transport for Uruguay's export trade.

Critics said Argentine authorities appeared not too keen on keeping the river route fully maintained as it posed a commercial threat to rival Argentine facilities on the river.

Uruguay used the Martin Garcia canal for vessels carrying grains, oilseeds, minerals, paper and pulp to its export markets.

The River Plate has two main canals, the Mitre leading directly to Buenos Aires and the Martin Garcia running parallel to the Uruguayan coast line and joining up with the Uruguay River, a major regional transport hub.

Argentine business interests are also worried that Uruguay's port of Nueva Palmira is taking trade away from Buenos Aires.

Uruguayan media reports accused Dutch company RioVia, responsible for the dredging operations, of cozying up to the Argentine side in the hope of retaining control on the river. Uruguay wants to remove RioVia and put the dredging operation to international tender, a move generally opposed in Argentina.

Uruguayan officials say the dredging costs can be cheaper than $12 million paid to RioVia last year. A temporary contract renewal led to RioVia agreeing to do the job in the interim but at a higher fee of $15 million. The company earlier demanded $19 million for its services this year, the reports said.

RioVia wasn't immediately available to comment on the reports.

Uruguayan officials said competitors have offered to carry out the same dredging operation for $9 million.



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TRADE WARS
Hong Kong fair showcases booming Asian art market
Hong Kong (AFP) May 15, 2012
Asia's premier art fair opens Thursday in Hong Kong, bringing artists, collectors and dealers from around the world to a city whose booming market illustrates a shift in wealth from West to East. The four-day event known as Art HK, now in its fifth edition, has booked 266 galleries from 38 countries, its 50-50 balance of Western and Asian making it unique in the art fair universe. A reco ... read more


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