The Financial Times reported today that General Zhu Chenghu said "…I think we will have to respond with nuclear weapons" - in regards to a U.S. military intervention in the conflict over Taiwan.   He was answering questions at a press conference for foreign journalists.

This statement was made a week before the Pentagon presents a report to Congress on the Chinese military.  It is also in the midst of a heated debate on whether the Chinese should be allowed buy the California based oil company Unocal. This has repeatedly brought up the question of whether China is a friend or foe - General Chenghu’s statement might help to clear up that issue.

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Cambodia Non-Stop Feeding is blogging developments in Cambodian oil and gas fields:

SIEM REAP, Cambodia (Reuters) — US major Chevron Corp. will assess the scope of its offshore Cambodia oil find early next year, raising hopes for the country’s first production by 2008, a senior government official said on Tuesday.

Chevron will drill six appraisal wells and four more exploration ones in early 2006 after discovering oil or gas in five of the six wells it drilled in

Cambodia’s Gulf of Thailand over the last two years, said Ho Vechit, vice-chairman of the Cambodian National Petroleum Authority.

"If the findings are positive, oil production may commence as early as 2008," he told an industry conference.

This seems to be good news for a country as impoverished as Cambodia.  Oil’s importance to the global and regional economies was attested to in the recent ASEAN conference, and having feedstocks near growing Asian markets is also an advantage.