Aussie underwrites cotton<\/p>\n
CANBERRA (Reuters): Australia plans to extend about A$250
\nmillion in export guarantee assistance for cotton exporters to
\nIndonesia, Industry Minister John Moore said yesterday.<\/p>\n
The assistance, to be arranged through the Export Finance and
\nInsurance Corporation, follows insurance cover for wheat sales to
\nIndonesia, announced last month and since increased to around
\nA$500 million.<\/p>\n
"Some 500,000 (cotton) bales go to Indonesia, it's our major
\nexport area, and we will be extending government insurance that
\nmakes sure that market is maintained," Moore said in a television
\ninterview on the Nine Network.<\/p>\n
Without the facility, international competitors could
\nundermine local producers by offering more attractive credit
\nterms, he said.<\/p>\n
"It'll cost something of the order of A$250 million, but it's
\ngovernment-guaranteed by the Indonesian government, so the
\nsovereign guarantee there should protect the Australian
\ntaxpayer," he added.<\/p>\n
Australia's total cotton exports are forecast at about A$1.2
\nbillion in 1997\/98.<\/p>\n
The government first announced plans in February to support
\nexports to financially troubled Indonesia, and has not put a cap
\non the plan, saying aid would be supplied on a case-by-case
\nbasis.<\/p>",
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