Soeharto seeks debt reductions<\/p>\n
JAKARTA (JP): President Soeharto called on urged multilateral
\ncreditors yesterday to slash the debt obligations of the world's
\npoorest countries and to play a greater role in stabilizing
\nfinancial markets.<\/p>\n
Speaking at the World Economic Forum on East Asia in
\nSingapore, Soeharto said bilateral and commercial creditors have
\nassisted these countries with bilateral and commercial debt
\nreductions.<\/p>\n
\"However, multilateral financial institutions have never been
\nwilling even to discuss the possibility of debt reduction,\"
\nSoeharto said.<\/p>\n
He added that the Non-Aligned Movement, currently chaired by
\nIndonesia, believes that, while each debtor should \"put its own
\nhouse in order,\" the international community should create the
\nnecessary external environment through, among others things, the
\nreduction of bilateral, commercial and multilateral debts.<\/p>\n
The movement is trying to convince multilateral lending
\ninstitutions that the obligations of the poorest countries to the
\ninstitutions are just the same as their obligations to bilateral
\nand commercial creditors, he said.<\/p>\n
\"I am happy that the World Bank is for the first time willing
\nto discuss a facility to help the world's poorest countries with
\nmultilateral debt reduction,\" Soeharto said.<\/p>\n
He called upon the World Bank and the International Monetary
\nFund to play a larger role in encouraging more stable exchange
\nrates and movements of capital that will not be destructive of
\nworld financial markets.<\/p>\n
Soeharto, who hosted last year's annual summit meeting of the
\n18-member Asia-Pacific Economic Cooperation (APEC) forum, gave
\nassurances that Asia's regional groupings are not aimed at
\ncreating exclusionary trade or economic blocs.<\/p>\n
\"It is of utmost importance for this audience to realize that
\nour goal in building regional arrangements is not to create any
\nkind of exclusionary trade or economic bloc,\" Soeharto told the
\nmeeting.<\/p>\n
Soeharto strongly endorsed the World Trade Organization (WTO),
\nsaying: \"We fully support the role of the WTO and will contribute
\nto its continuing efforts to build a global system of free
\ntrade.\"<\/p>\n
He urged regional trade groupings to remain open to non-
\nmembers and contribute to a global trading system. Some of Asia's
\nmost important economic partners are outside groups such as the
\nAPEC forum or the ASEAN Free Trade Area, he added.<\/p>\n
ASEAN (the Association of Southeast Asian Nations) groups
\nIndonesia, Singapore, Brunei, Thailand, Malaysia, the Philippines
\nand Vietnam, while APEC groups Australia, Canada, Chile, China,
\nHong Kong, Japan, Mexico, New Zealand, Papua New Guinea, South
\nKorea, Taiwan, the United States and all ASEAN members except
\nVietnam.<\/p>\n
Soeharto expressed concern about trade disputes among APEC
\nmembers, saying that unresolved conflicts could harm the systems
\nthat have been so carefully built to promote freer world trade
\nand investment.<\/p>\n
\"To avoid it, APEC is trying to find approaches to resolve the
\ndisputes so as to complement official provisions of the WTO,\"
\nSoeharto said.<\/p>\n
Later yesterday, in opening of the Singapore-Indonesia joint
\nexhibition in Singapore, Soeharto said that ASEAN's strategic
\nposition would ensure that it received the greatest benefits from
\nthe achievement of free trade and investment in the region.<\/p>\n
Meeting<\/p>\n
During his nine-hour stay in Singapore, Soeharto met with
\nSingaporean Prime Minister Goh Chok Tong and Senior Minister Lee
\nKuan Yeuw and made an honorary visit to President Ong Cheng
\nTeong.<\/p>\n
During a one-hour meeting at Singapore's presidential palace,
\nSoeharto and Goh agreed to forge closer bilateral ties through
\nthe improvement of economic activities.<\/p>\n
\"The agreements (between the two leaders) are to continue the
\ntourism development on Bintan island in Riau and in Manado in
\nNorth Sulawesi, the development of the Yogyakarta-Surakarta toll
\nroad in Central Java and other economic activities,\"
\nMinister\/State Secretary Moerdiono told journalists after the
\nmeeting.<\/p>\n
Soeharto, who was accompanied by First Lady Mrs. Tien
\nSoeharto, also witnessed the signing, by transportation and
\ndefense ministers, of a memorandum of understanding on civil and
\nmilitary aviation cooperation between Indonesia and Singapore.<\/p>\n
Under the memorandum of understanding, Indonesia will allow
\nSingaporean air force planes to fly south up to 50 kilometers
\ninto Indonesia's air space. The memorandum also assigns
\nSingapore's Changi airport to manage air traffic around the Hang
\nNadim airport on Batam island, Riau.<\/p>\n
\"With the integration of the two airports, Indonesia and
\nSingapore agreed to abide by the principal of 'first come first
\nserved',\" Indonesian Minister of Transportation Haryanto
\nDhanutirto said. (rid)<\/p>\n
WTO -- Page 8<\/p>\n
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