Aide clarifies on Habibie remarks

Aide clarifies on Habibie remarks

SINGAPORE (Reuters): Indonesian President B.J. Habibie will respect Singapore if it respects him, the Sunday Times newspaper quoted a presidential aide as saying.

Tensions between the neighboring countries have grown since Habibie last week accused Singapore of racism, saying that ethnic Malays were under-represented in the city-state's military.

Singapore politicians responded by accusing Habibie of trying to stir up ethnic divisions on the island state.

The paper quoted Habibie aide Umar Juoro as saying Habibie's remarks stemmed from residual resentment about criticisms made by Singapore Senior Minister Lee Kuan Yew last year.

Lee said in February last year that market unhappiness with Habibie's likely appointment as vice-president would lead to higher inflation, more bankruptcies and greater unemployment in Indonesia.