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Role of China and other Observers With growing pragmatic regional confidence and more interest in drawing on beneficial external linkages,the requests of outside states and organizations,for observer status in SAARC have been sensibly managed.The Declaration adopted at the 15th SAARC Summit held in Colombo (August 2008 )welcomed as Observers,Australia,China,Iran,Japan,the Republic of Korea,Mauritius,Myanmar,the United States of America as well as the European Union.The Summit also approved,in principle,Guidelines for Cooperation with the Observers and looked forward to working with them in the common pursuit of “a Partnership of Growth of the People of South Asia”,the theme of the Colombo Summit.Revised guidelines for cooperation with observers,were subsequently approved.They indicated the criteria for the participation of Observers as well as “modalities” for consideration of projects and their implementation.Financial contributions to the SAARC Development Fund (headquarters for which have now been set up in Bhutan) have also been approved and are being received.There is,already from China,an initial grant of $ 300000 to the Fund.