1.
SV PAN Damage at US residence
0.06

2.
SV PAN from one house to another down street
0.13

3.
GV Shots of damage
0.30

4.
GV Foreign Ministry
0.35

5.
SCU Koun Wick & Swank take seats
0.46

6.
CU Both signing
0.51

7.
CU Swank signing
0.56

8.
CU Wick signing
0.59

9.
Wipe to National Assembly
1.40

10.
GV Deputy Premier Sirik Matak arrives
1.10

11.
SV Guard of honour salutes as Cheng Heng arrives
1.28

12.
SV Cheng Heng up steps
1.41

13.
GV Officer salutes as cabinet pose on steps
1.47



Initials SGM/1535 SGM/1631



Script is copyright Reuters Limited. All rights reserved

Background: In the Khmer Republic -- formerly known as Cambodia -- guerrilla explosions, the first for three months, badly damaged two residences of American servicemen on Tuesday (1 June).

Some observers link the explosions with the 50 million dollar (approx. 20 million sterling) aid agreement signed on Monday (31 May) between the Khmer Republic and the United States.

On the same day (Monday), the Khmer Government made an offer of peace talks. At the opening of the final session of the National Assembly -- the first since the recent cabinet reshuffle -- the head of state, Mr Cheng Heng, said his Government was willing to open talks to end the war if the Vietcong and the North Vietnamese withdrew all their troops.

SYNOPSIS: On Tuesday, guerrilla explosions -- the first in Phnom Penh for three months -- damaged two residences of American servicemen in the capital of the Khmer Republic -- formerly known as Cambodia. The blasts occurred within 15 minutes of each other shortly after dawn. Leaflets found on the scene blamed the United States for destroying Khmer neutrality. It was the second attack on American personnel since the overthrow of Prince Sihanouk 15 months ago.

On the previous day, the United States Ambassador, Mr Koun Wick, signed a new aid agreement. Under it, America will provide 50 million dollars worth of commodities to bolster the Khmer economy.

This new financial injection will bring the Khmer Republic's total civilian aid from the United States to 78 million dollars for 1971.

On the same day, the Khmer Government made an offer of peace talks at the opening of the final session of the National Assembly -- the first since the recent cabinet reshuffle. The head of state, Mr Cheng Heng, said his Government was willing to open talks to end the war of the Vietcong and the North Vietnamese withdrew all their troops from his country. It was the first time that a Khmer leader had officially mentioned the subject since the war overran the country just over a year ago.