Aussie defers finance forum over East Timor

Aussie defers finance forum over East Timor

DARWIN, Australia (Reuters): Ongoing strife in East Timor has
led to the postponement of an East Asian investment conference in
Australia, which has seen its relations with Asian neighbors
deteriorate over its military role in the crisis.

The Northern Territory/Brunei Indonesia Malaysia Philippines-
East ASEAN Growth Area (BIMP-EAGA) Finance and Investment
Conference had been set for Oct. 27-28 in the northern Australian
city of Darwin.

It has been deferred until at least May 2000, Australia's
Northern Territory government announced on Wednesday.

"In view of the unforeseen developments in the region, it is
considered that to host a regional conference in October is
inappropriate," the Northern Territory's trade department said in
a statement.

It said deteriorating relations between Australia and
Indonesia over East Timor had been a factor in deferring the
conference.

"The East Timor situation is still very volatile, relations
with Indonesia equally so," the statement said.

A spokesman for Northern Territory Chief Minister Denis Burke
said he did not know whether Indonesia had said it would not
attend the conference.

"As far as I know it was just decided that due to the
circumstances it was appropriate to defer the conference," the
spokesman told Reuters.

Australia is leading a U.N.-backed multinational force to
restore order in devastated East Timor. Its role there has put it
seriously at odds with Indonesia and Malaysia, while it has also
been criticized by China.

Indonesia has accused Australia of overreacting to the crisis.

Jakarta has delayed the posting of a new ambassador to
Canberra and said it would help Indonesian firms that decide to
shun Australian imports.

Malaysian Prime Minister Mahathir Mohamad last week accused
Australian troops of being heavy handed and called for their
numbers in the U.N. operation to be cut.

Darwin is being used as a staging point by the United Nations
and aid and humanitarian agencies operating in East Timor.

"Darwin has been the focus of considerable activity over the
last few weeks," the government said.

"The re-establishment of stability is crucial to restoring the
NT/BIMP-EAGA initiative and the long term economic success of the
region," it said.

The Northern Territory government said an APEC annual meeting
was still set for Darwin in mid-2000.

BIMP-EAGA was set up in 1994 as a regional economic
cooperation forum. It was established as an industry-driven body
that aimed to work with the governments of member countries to
stimulate regional development.