At the Office of the Council of Ministers, at 08:30 am on October 28, 1998, the Council of Ministers convened, co-presided over by H. E. Mr. Ung Huot, the First Prime Minister and Samdech Hun Sen, the Second Prime Minister of the Royal Government of Cambodia, to review and evaluate on

i)- situation of rice cultivation in 1998 and the preparation to enhance the rice cultivation in the dry season from 1998 to 1999, and

ii)- the report on the action plan to execute the ADB loan.

On the first item of the agenda, the meeting of the Council of Ministers took great attention to the report of the Ministry of Agriculture, Forestry and Fisheries, which showed the assessment of the Ministry on the rice cultivation in the rainy season of 1998 that accomplished 86.13% of the annual plan, a surplus of 28,000 ha. from 1997, and expected yielding of 1.6 tons per hectare, totaling the annual product of 2,940,000 tons. The Council of Ministers approved on the Ministry’s request for some measures concerning irrigation problems including stern measures to preserve water in the reservoirs, lakes and canals for the use in the coming dry season, and protecting measures against insects destroying the rice crops etc.

Regarding the action plan to execute the ADB loan for the Agricultural and rural developments began in the late 1993, the Ministry of Agriculture, Forestry and Fisheries and Ministry of Economy and Finance signed an agreement with the ADB in 1996 to use the 30 million US Dollars loan which had already been adopted by the National Assembly in its Budget Bill. Concerning other measures approved by the Royal Government for the implementation in the frame work of ADB loan such as the Draft Law on New Land Reform, the introducing of new rates for chemical fertilizers by eliminating subsidiary, the sub-decree on standardization of Agricultural materials, principles for operation and maintenance of irrigation systems by guaranteeing financial self supply to ensure the continuation of irrigating system, principles and strategy for rural credits, setting up state planning experiencing from the corporation and the privatization of rubber plantations including measures to ensure the wellbeing of the employees of the plantations, the establishment and operation of the Rural and Provincial Development Committees and the mechanism for the preparation to establish the Development Committees for Communes and villages. The Council of Ministers approved and recommended the Office of the Council of Ministers and concerning ministries to take all efforts to issue legal regulations for the implementation in accordance with the concrete requirement and aspiration of the people and the state.

In conclusion, the Heads of the Government put forth measures for implementation from then on as follow :

1)- maintain normalcy of the Cambodian situation,

2)- maintain the official result of the July 26, 1998 election both in national and international frame work, and

3)- continue the efforts of reconciliation with political parties having seats in the National Assembly to form a new government,

To achieve these three goals, we must :

- efficiently implement the declaration of Samdech, the Second Prime Minister of the Royal Government of Cambodia on October 22, 1998, by issuing a legal regulations to ensure the accurate implementation of the declaration,

- Ministry of National Defense, Ministry of Home Affairs and Phnom Penh Municipality must strengthen the protection of safety, social orders and security in the Phnom Penh Capital, especially during the incoming water festivals serving the entertainment of the people and building up confidence of investors,

- Government institutions must pay attention to heighten disciplines from the top to the grass root levels, strictly surveying the presence and personnel of all state institutions.

- continue to strengthen the tax disciplines, timely wage paying, discipline of tax collection by government institutions, and strengthen all tax channels in Cambodia,

- all institutions have to facilitate the work of the financial institutions in controlling tax collection and budget paying i. e. the mobilization of state income,

- the Royal Government will convene a meeting to be attended by all members of the government, officials in charge of provinces, towns and ministries, to publicize the 7 points measures in the declaration of Samdech, the Second Prime Minister, on October 22, 1998.

The Council of Ministers concluded its meeting at 11:30 am of the same day in the spirit of unity and high responsibility.

Phnom Penh, October 28, 1998