PUTRAJAYA, July 6 — Prime Minister Tun Dr Mahathir Mohamad suggested that Council of Eminent Persons (CEP) chairman Tun Daim Zainuddin’s visit to China will be to discuss “some contracts”.

Speaking at a press conference today, Dr Mahathir made the educated guess when asked to state what Daim’s visit was meant to achieve.  

“I think he wants to talk with the Chinese about some contracts, perhaps. That is my guess because he is free to do what he likes,” he said.

He stressed that the CEP was an entirely advisery body whose recommendations he was free to accept or ignore as he prefers.

News that Daim will travel to China emerged after the Finance Ministry confirmed the suspension of the East Coast Rail Link (ECRL) and the two projects under Suria Strategic Energy Resources Sdn Bhd (SSER) yesterday.

The Edge Financial Daily quoted an anonymous source as claiming that Daim intended to tap tycoon Robert Kuok’s network in the country, but the person did not say if this was related to the suspended projects here.

During the same press conference, Dr Mahathir also announced he will head to China in August to renegotiate the “unfair terms” in some contracts signed by the previous Barisan Nasional administration.

Yesterday the Finance Ministry had confirmed in a press statement that a work suspension noticed had been issued to all contracts relating to ECRL and SSER.

Finance Minister Lim Guan Eng said the suspension noticed was issued on July 3 through Ministry of Finance Incorporated under the instructions of Dr Mahathir after the latter was advised by the Attorney-General’s Chambers.

The ministry also stressed that the suspensions did not carry any diplomatic significance towards any country.