Another 'Pearl'?
Anyone would think China has a policy of encirclement...
Asia Times Online :: South Asia news - China moves into India's back yard
China is all set to drop anchor at India's southern doorstep. An agreement has been finalized between Sri Lanka and China under which the latter will participate in the development of a port project at Hambantota on the island's south coast.
An agreement on the Hambantota project was among eight that were signed during Sri Lankan President Mahinda Rajapakse's recent visit to China. Even as the Sri Lankans were finalizing the deal with the Chinese, they clinched an agreement with the Americans. In Colombo, officials reached agreement on an Acquisition and Cross-Servicing Agreement (ACSA) with the US.
The agreements come at a time when India is already watching with concern the growing Pakistani influence in Sri Lanka.
The Hambantota Development Zone, which the Chinese will help build, will include a container port, a bunkering system, an oil refinery, an airport and other facilities. It is expected to cost about US$1 billion and the Chinese are said to be financing more than 85% of the project.
