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.