Despite Cambodia approaches the United States to cancel its $445 million debt (by 2009), the State Department says that cancelling Cambodia’s debt would set a bad example.
In a news article by The Associate Press, later picked up by the Canadian Press, deputy assistant secretary of state Joseph Yun was quoted as saying that “the impoverished country has the ability to pay what it owes the United States.”
This response might not satisfy Cambodian leaders following its attempts by it high profile leaders meeting with the U.S. counterpart. However, Cambodia may have China to influence this said decision.
More detail: Cambodia’s Small Debt: When Will the US Forgive?