An agreement on Tonga's multi-million pa'anga loan from China is expected to be signed during a 2nd China-Pacific Island Countries Economic Development and Cooperation Forum on November 7-8 in Guangzhou.

Prime Minister Lord Tu'ivakano will lead Tonga's delegation, said Mr Xu Zhiguang the First Secretary at the Chinese Embassy in Nuku’alofa.

He said Tonga's concessional loan was one of the topics to be discussed between the governments of Tonga and China and when the relative agreement is signed at the forum everything “will be clear”.

The aim of the forum was to promote the economic and trade cooperation between China and Pacific island countries. The Chinese government would sign economic and technical cooperation agreements with each of the countries, and there were to be four seminars covering the fields of cooperation in agriculture and fishery, tourism, trade and investment and environment protection, he said.

Mr Zhiguang said Tonga is one of eight Pacific Island countries which have diplomatic ties with China who were invited to take part in the forum.

Tongan officials attended the first China-Pacific Island Countries Economic Development Forum in Xiamen in September 2008.

Deferred

Meanwhile, last month on September 18, Prime Minister Lord Tu'ivakano told the Tongan parliament that China had deferred Tonga's repayment of its $119 million pa'anga loan indefinitely. 

Tonga was originally scheduled to start repaying its loan from the Exim Bank of China on September 21.