Asian crises loom over G-8 annual summit leaders

Asian crises loom over G-8 annual summit leaders

BIRMINGHAM, England (Reuters): World leaders gathered yesterday for an annual summit likely to give graphic proof of their inability to influence Asia's crises.

Chaos on the streets in Indonesia and impotent global anger at India's nuclear tests set a somber backdrop as leaders of the eight major industrial powers flew in to Britain's second city, Birmingham.

Asked about the five nuclear tests conducted by India this week, a spokesman for summit host Tony Blair said: "There will be discussion of a strong condemnation and other measures but we do not envisage a G-8 sanctions package like the U.S. has done."

As the death toll soared in devastating riots in Jakarta, U.S. President Bill Clinton urged Indonesia to pursue political as well as economic reform and said the fate of President Soeharto was in the hands of his people.

Clinton, the first of the eight leaders to arrive, said he wanted the summit to issue a "strong and unambiguous" message condemning India's underground nuclear explosions and to encourage Pakistan not to follow suit.

"I hope we can convince Pakistan not to engage in testing. I'd like everyone to sign on to the test ban and work together to reduce the nuclear threat," he said at the start of a lunch with French President Jacques Chirac.

Earlier, at a meeting with Japanese Prime Minister Ryutaro Hashimoto, Clinton told reporters: "We're both very concerned about the situation in Indonesia. The loss of life and other destructive developments have been heartbreaking."

Asked whether it was time for Soeharto, a military strongman who came to power in 1967, to step down, he said: "What we do believe is important is that the present government open a dialogue with all the elements of society and that it lead to genuine political reform."

Chirac, speaking to reporters before lunching with Clinton, said: "We would like to have a peaceful solution to the Indonesian crisis."

Amid cheers from sightseers, Clinton took a brief stroll across a 19th-century canal and sat in the sunshine at a pub, drinking warm English beer and eating chips (French fries) in his shirtsleeves.

The Asian crises seemed sure to dominate the three-day summit, opening formally yesterday evening, elbowing aside themes such as easing the debt burden on the world's poorest countries, protecting the environment, fighting cross-border organized crime and reforming international financial institutions.

Asked whether the leaders would be able to overcome differences on whether to follow the United States in imposing economic sanctions on India, Blair told reporters: "There is huge universal concern about the nuclear testing of India but I don't want to prejudge what we will say before we've had a proper discussion."

Britain, France and Russia have all come out against sanctions, while Clinton, bound by U.S. law, has imposed sweeping punitive economic measures that could cost India $20 billion in lost loans, aid and credit guarantees.

Japan, the only country to have been hit by an atomic weapon, has suspended new yen loans and cut off aid, while Canada has also announced some sanctions.

Russian President Boris Yeltsin, looking fit and alert, told reporters on arrival at Birmingham airport he was sure the leaders would debate how to halt the spread of nuclear weapons following the Indian tests.