China says will act to reduce Iraq debt

BEIJING, June 21 (Reuters) China said today it was willing to reduce or forgive Iraq's debt on a large scale to help rebuild the country's war-shattered economy.

''China has always been supportive and has participated in the rebuilding of Iraq,'' foreign ministry spokesman Qin Gang told a regular news conference.

''We will reduce or forgive Iraq's debt on a large scale, and help it to train people in the fields of economics, electrical power, diplomacy and management,'' Qin said, adding that Chinese companies were also willing to participate in the rebuilding.

He did not elaborate on debt figures.

Iraqi President Jalal Talabani has just begun a week-long trip to China.

Talabani will meet China's President Hu Jintao, Premier Wen Jiabao and top legislator Wu Bangguo.

''We hope Iraq can restore stability, safety and development as soon as possible,'' Qin said.

China donated 50 million yuan (6.56 million dollars) of aid to Iraq in May, he said.

REUTERS SYU VV1602