On the afternoon of February 28, Chinese Assistant Foreign Minister Shen Guofang delivered a speech at the International Reconstruction Fund Facility for Iraq (IRFFI) Conference, mainly elaborating China's four-point views on issues of coordination of the IRFFI, which are as follows:

First, coordination between the IRFFI and Iraq should be enhanced. The coordination mechanism for aid to Iraq has been established. The IRFFI should listen to the concerns and suggestions of Iraq and provide guidance and technical assistance to it, making use of the advantages of the United Nations (UN) and the World Bank. The two sides can exchange views and coordinate actions through regular joint meetings or some other channels.

Second, coordination between the UN and the World Bank should be enhanced. The IRFFI attaches great importance to coordination between the trust funds of the UN and the World Bank and has established a corresponding committee. The coordination between the two funds can be further enhanced. Fourteen fields are identified for reconstruction in Iraq. However, the division of labor between the two funds is only a principled one, which should be more specified in order to give full play to their respective advantages, avoid duplications or omissions and help donor countries to make decisions.

Third, coordination between the IRFFI and UN Group of Friends should be enhanced. Due to security reasons, work in Iraq by the UN has not been in full deployment. Secretary General Kofi Annan has indicated that the UN is willing to play its role in all related fields after Iraq takes over from the coalition forces. China supports work undertaken by Annan and the comprehensive role of the UN on the issue of Iraq and hopes at the same time that the IRFFI can be forward-looking by strengthening relations with UN Group of Friends and exploring ways of synergizing their work.

Fourthly, coordination between multi-lateral and bi-lateral assistance should be strengthened. China hopes that the IRFFI regularly update bilateral donor countries on its detailed operations and invite the countries to relevant meetings or activities, which will be conducive to coordinating different forms of aid to Iraq and boosting the transparency of IRFFI operations.

Shen Guofang disclosed that China is considering taking some money out of the US$25 million of aid gratis it has pledged to Iraq at the Madrid conference and put it into the relief and reconstruction fund for Iraq. He added that China has recently provided another 5 million yuan aid to Iraq for training of Iraqi economic and management personnel.

Shen Guofang said that China views the IRFFI is still in its starting phase, whose operations require further improvements and should stick to the principles of openness, transparency, effectiveness and coordination in particular.

The establishment of IRFFI was declared at the Madrid Donor's Conference on Reconstruction in Iraq held in October last year. Its mandate is to manage assistance funds for Iraq's reconstruction.

This conference was held in Abu Dhabi, the United Arab Emirates (UAE), at which representatives of international organizations and 30-plus countries including China, the United States, the United Kingdom, India and Japan, were present.