Laos says hydropower not key to long-term growth

    HONG KONG, Sept 24 (Reuter) - Laos said on Wednesday 
that while it hoped to generate significant revenue from 
hydropower exports to neighbouring Thailand, it was 
determined to stimulate rural development as a long-term 
solution to economic growth.
   Finance Minister Saysomphone Phomvihane told the World 
Bank/International Monetary Fund annual meeting that a dip 
in growth in 1996 had been compounded this year by poor 
harvests, Southeast Asia's financial crisis and removal of 
garment export privileges to Europe.
   "Although the prospects for growing revenue from 
hydropower exports are reassuring in the medium term, the 
garment industry is important as the government is aware 
that building a non-hydropower sector in the economy is 
essential to ensure sustained growth and to generate 
employment for a fast-growing population," he said.
   He did not give figures for expected earnings from 
hydropower. Thailand agreed in 1996 to buy 3,000 megawatts 
of power from several major dam projects due to come on 
stream by 2006.
   Since then Thailand has been hit with an economic crisis 
that has seen its currency plummet and raised doubts about 
the future of its economy.
   The international community has pledged more than $1.2 
billion to Laos until 2000, Saysomphone said.