PHNOM PENH — The U.S. has improved its relations with Cambodia and increased assistance as the country and its growing economy become more strategically important in Southeast Asia.

Chevron's recent discovery of offshore oil and gas deposits, and concern about China's rising influence in the region, are among many factors that contribute to U.S. policy here.

Cambodia's location between fast-growing Thailand and Vietnam, and its natural resources and potential for growth, could make it an important ally.

"We believe the extractive industries — gas, oil and mining — have a huge potential in Cambodia," said U.S. Embassy Charge dAffaires Piper Campbell. "But there is concern about how those resources will be managed."

The U.S. is encouraged by recent dialogue about cracking down on corruption, but is awaiting solid results, she said.

"We are engaged in a fruitful discussion with the government regarding corruption and anti-corruption legislation," she said. "We are very encouraged by what the government has said."

The U.S. expects to provide more than $65 million this year for a wide range of programs aimed at improving education and public health, preventing corruption, and managing natural resources.

In February, the guided missile frigate USS Gary became the first United States warship to visit Cambodia in more than 30 years.

In August, Hawai'i-based Adm. Timothy Keating, commander of the U.S. Pacific Command, met with Cambodian defense minister Tea Banh here and offered to provide military training and other assistance meant to prevent the country from becoming a haven for international terrorists.

The U.S. had ended military assistance after a 1997 coup, in which current Prime Minister Hun Sen ousted his co-premier, Prince Norodom Ranariddh.

Cambodia's navy is now expanding to better secure the coastline and protect offshore drilling sites. Cambodia and Thailand have contesting claims to some potentially lucrative oil and gas fields in the Gulf of Thailand.

The U.S. recently established its first-ever contingent of Peace Corps Volunteers here.

"Cambodia is a country that is rich with hope and talent," U.S. Ambassador Joseph Mussomeli said during a swearing-in ceremony for the volunteers in April. "Cambodia is a country with a nightmare past and a future of bright dreams. Cambodia is a country that was once isolated and is now eagerly embracing the world community."

More than $30 million from the U.S. Agency for International Development will pay for health and education programs and infrastructure this year.

The money will help promote a variety of activities meant to reduce the transmission and impact of HIV/AIDS, and control major infectious diseases such as tuberculosis.

U.S. Pacific Command has pledged nearly $2.4 million to build and repair schools and medical clinics, and distribute mosquito nets in impoverished rural provinces.

Advertiser Staff Writer Johnny Brannon is traveling in Southeast Asia as a Jefferson Fellow with Honolulu's East-West Center.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.