Cambodia's deputy prime minister confirmed the demolition of the US-sponsored defense facility at the Ream naval base, because the project was old.

"We have relocated the facility to a new location. We cannot keep this building anymore, because the building is old," Cambodia's Deputy Prime Minister and Defense Minister Tea Banh said today.

Tea Banh said the building was demolished last month and the new facility, which is being built about 30 kilometers north of Ream, "will be much better".

Cambodia's comments made after the International Center for Strategic Studies (CSIS) on October 2 released satellite images showing that the US building was financed, worried the Pentagon and asked for Phnom Penh.

The US side also said that this decision raised speculations about Cambodia could allow the Chinese army to be stationed at Ream.

Location of Cambodia's Ream naval base.

However, the Cambodian government repeatedly denied that China had reached a secret agreement with them to locate forces at the base.

The Ream base is located southeast of the port city of Sihanoukville, a special economic zone that is booming casino business, with businesses largely owned by China.