BEIJING, Dec 29: China will consider cutting Iraq’s debts or writing them off out of humanitarian concern, state radio quoted Chinese Premier Wen Jiabao as saying on Monday.

Wen told the US administration’s special envoy on Iraqi debt, James Baker, that China would consider cutting Iraq’s debts by a large amount, the radio said. He did not elaborate.

China fully understood the difficulty of Iraq’s reconstruction efforts and the plight of the Iraqi people, Wen said.

White House deputy spokesman Sean McCormack, who is travelling with Baker, said talks were in the formative stage and he would not elaborate on how much debt writeoffs Baker was seeking.

“China has recognised how critical this effort is to the successful reconstruction of Iraq,” he told Reuters. “China’s leaders stated today that they will positively consider reducing the debt Iraq owes China by a relatively big margin.”

Later in the day, Chinese President Hu Jintao told Baker that China, together with the international community, would continue to help Iraq’s reconstruction to restore peace and stability as soon as possible, the official Xinhua news agency said.

China objected to the US-led invasion of Iraq without UN backing.

The United States, facing guerillas in Iraq, sees freeing the country of its estimated $120 billion foreign debt burden as key to helping revive the economy.

President George W. Bush dispatched Baker to major credit nations this month to try to reach an international agreement.

Iraq is the most heavily indebted country in the world in terms of population.—Reuters