GERMANY is topping up its grants to Cambodia to reflect the worsening problem of

refugees fleeing continued fighting between the Royal Government and the Khmer

Rouge.

The inability of the elected government to bring a lasting peace

to Cambodia has made it all the more important for the international community

to lend its support, said Weghard Haerdtl, permanent secretary of state at

Germany's Ministry for Economic Cooperation and Development.

"The

international community has only one possibility or opportunity if it does not

want to intervene military, and this is something that nobody wants to do," he

said on a visit to Phnom Penh.

The German delegation signed three

agreements, including one to cancel $10 million of debts.

The

outstanding debts had made it impossible for Germany to disperse new cash

granted as part of the ICORC meetings in Paris and Tokyo.

The other two

agreements offer $35 million in outright grants for financial and technical

cooperation from 1992 and 1993.

"The pledges we made in Tokyo were a bit

less than what the country would now be getting so we have topped up our

contribution (because of refugee problem)," he said.-Reuters