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PHNOM PENH/HANOI - Cambodia plans to cut shipping through Vietnamese ports by 70% as a result of a $1.7 billion China-funded upgrade of a canal connecting the Mekong River basin to the Cambodian coast, the country's deputy prime minister told Reuters.Sun Chanthol downplayed environmental concerns about the Funan Techo canal slated to break ground later this year, and dismissed speculation that it could be used to allow upriver access for Chinese warships as"baseless".
However, while Sun Chanthol said the canal would be used also for land irrigation and fishing, he said the water that would be diverted would be"a drop in the bucket". If requested, Cambodia would provide additional information with the MRC, but had no legal obligation to do so, he said. However, the limited capacity of the canal"brings its economic viability into question," said Ted Osius, former U.S. ambassador to Vietnam and currently head of the US-ASEAN Business Council, an influential advocacy group.
Brian Eyler, programme director on sustainability at U.S.-based think tank Stimson Center, said the canal would"reduce water available for industrial scale rice production in Vietnam".
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