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maltatoday, SUNDAY, 13 JULY 2014 4 Interview China, the renewed friendship JUST before leaving the Huaxi State compound built originally for the Communist elite, Joseph Muscat concedes the press some time for an interview in the lavishness of his pri- vate quarters. He first declined a short interview for a round-up on his Chinese visit's highlights, before his spokesperson relented. So, what's next for Malta and the Asian superpower? "We were the first European Un- ion country to seal an agreement with the Chinese government. While other countries have statements of intent, we managed to have a memo- randum of understanding with a plan agreed to between the two countries. A steering committee will meet later this year to implement this agree- ment." Muscat said that the agreement will mean Chinese companies can move very fast. "A decision to allow state-owned companies to enter into a business relationship will do away with a lot of red tape." But are the Chinese genuinely in- terested in Malta, or has the excep- tional VIP treatment throughout the visit been just a show of Chinese di- plomacy? "I have no doubt about Chinese intentions. I am well informed that the Chinese authorities were always interested in doing business with Malta. It is also incorrect to think that the Chinese are interested in Malta because of political reasons. None of the state-owned companies are willing to invest if there isn't an economic angle. "Why wasn't there business be- tween the two countries? I can only say that a joint commission between the two countries has been pend- ing since 2011. The attitude of the former government was not to ac- tively promote business with China. I cannot say that [Gonzi's] govern- ment was wrong, but it was Euro- centric – perhaps that was what was needed at the time. We changed all this. But then again, I cannot say how I would have acted at the time. To- day, the time is ripe to do business with China, and that is why we have radically changed our position." Muscat avoids hitting out at the Gonzi administration: it's an open secret that he has unreserved respect for Lawrence Gonzi, a different atti- tude to his present one towards Si- mon Busuttil. "China has an enormous amount of dollars… we are talking of trillions of dollars. The dynamics of globali- sation mean that if China does not dispose of them in the next 15 to 20 years they have a good chance of los- ing that money. They are looking at opportunities, anyone who comes with the right offer, and I am not say- ing this myself. Premier Li Keqiang said it himself, about the available funds and he also spoke of millions of Chinese who would be travelling to other countries. "We are not alone here. Angela Merkel, David Cameron, Matteo Renzi and Hollande and others form part of the same group. They all came with offers, some were taken, others not. We have made some offers, and we can base the success of our offers on our competitive advantage." Muscat says three considerations have made Malta attractive to China. Its geographical proximity to the Af- rican continent which he says "has the greatest growth potential… Chi- na is very interested in Africa"; then there Malta's high-quality human capital at a competitive and reason- able cost; and finally, the island's leg- islative agility, which gives investors the framework to operate effectively. He says the Chinese have the mem- ory of an elephant. "They will not forget that Malta was the fifth coun- try to recognise it as a nation. They remember what happened decades ago. There is goodwill too, but that is not enough. " He obviously refers to Dom Mint- off's memorable visit to China under Mao Zedong, when Beijing's roads were lined with thousands of Chi- nese children chanting slogans in Maltese, praising the Maltese pre- mier. Mintoff had then defied the international mood to recognise the People's Republic of China. Back to present days, this Maltese delegation has attracted even more interest with the addition of Malta Enterprise trade envoy Sai Mizzi Liang, the wife of energy minister Konrad Mizzi, whose €3,000 month- ly salary was undisclosed up until this week. "I think the Opposition's criticism of Mizzi Liang, being the minister's wife was legitimate. But she has de- livered and that is the most impor- tant thing. It is up to me to decide when to divulge the conditions of Sai Mizzi Liang," he insists. But would it not have been appro- priate to have replied to the demands of the press about Sai Mizzi Liang last year, when MaltaToday filed an official freedom of information re- quest? "Perhaps we should have ad- dressed the issue before, but I can only say that Mizzi Liang's appoint- ment contributed to the agreement we now have. That would not have happened without her intervention. Having said this, she has said that she has no objection to having her FS3 published." He was asked about the perks, that do not appear in the FS3 form. "The allowances are similar to those awarded to ambassadors. There is nothing different in Sai Mizzi Liang's case." The prospects of tourism from China were also raised. "The Chinese tourist is no different to the American tourist who visits Europe to see more than one coun- try. We are looking at getting over Chinese tourists who would visit Malta as part of a package. We are talking to cruise liner companies to look into this idea. When we concre- tise this, we do not need to enter into any new agreements, this is covered by the memorandum and articles." The Maltese embassy today issues around 300 visas a month and Mus- cat says he wants to improve waiting times. "The Italians have reduced the time to issue a Schengen visa by 36 hours. With our limited resources, the time we take is 10 days." He also reveals his intention of working on an air link with China: a rather ambitious project that is also a gamble. "We are looking at an air link, not to Beijing but to a provincial town. And we have discussed this, but the discussions here do not only take place on a political level, but also on a commercial level. I know Air Malta does not have the capa- bility, but Air Malta is aware of this opportunity and we are looking at all the options." I can only say that Mizzi Liang's appointment contributed to the agreement we now have China has trillions of liquidity… if it doesn't dispose of them in the next 20 years, they will lose it T E N D E R MALTA RESOURCES AUTHORITY Millennia, Aldo Moro Road, Marsa Tel.: 22955121; Fax.: 22955200 http://www.mra.org.mt Lease of Office Space The Malta Resources Authority invites interested parties to submit tender offers for the lease of office space. Sealed tender offers, with the Advert Number MRA/58/2014 clearly marked, must be deposited at the Malta Resources Authority tender box at Millennia, 2nd Floor, Aldo Moro Road, Marsa MRS 9065 by not later than 10 a.m. of Friday 5 th September 2014. Further details may be obtained from the Authority's website: www.mra.org.mt SAVIOUR BALZAN catches up with Prime Minister Joseph Muscat at the end of his visit in China Prime Minister Joseph Muscat with Chinese Premier Li Keqiang