RIYADH, 12 February — Czech President Vaclav Havel has called for stepping up cooperation between Saudi Arabia and the Czech Republic to boost bilateral trade which, last year, stood at $32.5 million.
Addressing a press conference at the Conference Palace here yesterday, Havel proposed the signing of an agreement on joint economic cooperation to encourage investment in the Kingdom.
The Czech president, on his first visit to the Kingdom, later left for Kuwait along with his 60-member delegation. He met Custodian of the Two Holy Mosques King Fahd and Crown Prince Abdullah, deputy premier and commander of the National Guard, on Saturday. He also called on Riyadh Governor Prince Salman, whom he invited to Prague for an international conference in August.
During his meetings with the Saudi leaders, President Havel discussed the latest developments in the Middle East as well as regional and bilateral issues. Replying to a question on the situation in the Middle East, the president said he supported the Middle East peace process. "We are in favor of any move that will promote a just and comprehensive peace in the region."
On the economic front, the Czech Republic is keen on concluding the Intergovernmental General Agreement, which will provide the framework for other agreements. Currently, the Czech Republic has a favorable balance of trade with this country. Its major export items include passenger cars, industrial machinery, instruments, foodstuff, crystal and shoes. Imports from the Kingdom consist mainly of oil.
Asked how the two countries could stimulate bilateral trade, the Czech President replied that the first step would have to be the signing of a joint agreement. Only then could other steps follow. "We are in favor of encouraging Czech investment in Saudi Arabia and Saudi investment in our country," he said.
According to Czech Ambassador Vaclav Frybert, the first Saudi-Czech joint venture, a $22 million foundry project, is destined for the Eastern Province. It involves Precision Forging Co., a subsidiary of Al-Suwaidy Holding Company, and PSJ Holding of the Czech Republic.
The president referred to the marketing of Czech heavy duty vehicle Tetra, which, he said, would be ideally suited to the Kingdom's harsh climatic conditions.
Havel assured the Saudi businessmen that the Czech Republic had rung down the curtain on its communist past. The cold war era was over and his country was forging ahead with economic reforms to cope with the challenges of a free market economy.
