Kuala Lumpur, 17 September 2001 (Business Times) - The Government willinvite Russian officials to Kuala Lumpur to sign the palm oil credit andpayment arrangement between both countries if the deferred official visitby Prime Minister Datuk Seri Dr Mahathir Mohamad to Moscow is cancelled.

Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said the signingceremony would be held in Malaysia to expedite the RM190 million deal.

The event was scheduled to be held in the Russian capital last week butwas temporarily shelved due to events in the United States.

"My Ministry will invite the Russians, including its senior Central Bankofficials, to sign the deal without any delay," he told reporters afterattending a dinner to commemorate the opening of the Kanthan Baru Gerakanbranch office yesterday.

Under the agreement, Malaysia will supply 200,000 tonnes of crude palm oiland Bank Negara would first settle payment to local millers.

The Rusian Central Bank would in return collect payment and reimburse itsMalaysian counterpart.

Dr Lim, who is Gerakan president, hoped the Indian and Chinese Governmentswould expedite the RM10 billion double-tracking projects stretching fromSeremban to Johor Baru in the South and Ipoh to Padang Besar in the North.

The Indians have been offered the northern sector while the southernsection to the Chinese.

"They have agreed to build the railway lines in exchange for palm oil," headded.

The barter trade between Malaysia and the top two palm oil consumingnations are among the measures adopted to maintain the primary commodityprice in the volatile international market.

Others are providing credit facilities to importing countries, encouragingsmallholders to undertake replanting and burning of excessive crude palmoil for electricity generation.

Dr Lim cautioned that smallholders and estate managements should not becomplacent just because the commodity price had gone up to RM1,300 permetric tonne over the last two months.

"Now it is about RM1,000 and it may dip down as the last quarter is knownas the highest productivity months," he said.

Dr Lim said planters could expect price to remain firm only if theystrictly adopted measures outlined by the Government in April.

Earlier in his speech Dr Lim said the US and its citizens should work outan appropriate approach to fight terrorism and not allow a mass hysteriaof hatred towards any race and religion.

He said it was wrong to equate Islam with violence, extremism andterrorism.