The Cook Islands government has announced China would provide $39 million as a loan toward infrastructure development.
The Cook Islands government hopes New Zealand will help repay the Chinese loan. But the Cooks’ hopes have been met with surprise and ridicule.
The opposition Cook Islands Party’s spokesman on finance and economics, Norman George, told Radio Australia’s Pacific Beat program that the loan scheme is unrealistic.
“That is absolutely absurd,” he said.
“It is the stupidest thing that I have ever heard a politician make in my 25 years as a member of Parliament in the Cook Islands. I just cannot believe it — this man is talking about Disneyland.”
New Zealand Foreign Affairs Minister Murray McCully was not available for comment, but a former New Zealand diplomatic official expects the request for New Zealand assistance in repaying the loan will be rejected.
Former associate minister of foreign affairs with special responsibility for aid, Matt Robson, of the Progressive Alliance Party, said the Cook Islands deputy prime minister’s hope that New Zealand will help repay the Chinese loan is misplaced.
Deputy Prime Minister Sir Terepai Maoate has defended the loan scheme.
He said the agreement with the Chinese was good because China agreed half of the construction contracts for projects would go to local companies, while Chinese labor and material will be used for the remainder.
