Australia 'committed to Asia'

Australia 'committed to Asia'

CANBERRA (Reuters): Acting Australian Prime Minister Tim Fischer said yesterday that Australia remained committed to Asia, but would develop new export markets.

He also said a Sunday telephone conversation between Indonesia's President Soeharto and Australian Prime Minister John Howard was "a very useful dialogue".

"The situation continues to unfold and there will be other interface between the Australian government and the Indonesian government," he told reporters.

"Australia is engaged with Asia for the long haul, there is a great deal of potential associated with the Indonesian economy," Fischer said. The region buys about 60 percent of Australia's exports.

Asked if the government was concerned with news of the cancellation of infrastructure contracts by the Indonesian government he said: "It's obviously going to be a very difficult time for Indonesia."

Fischer said the official assessment of the Asian crisis' impact in the Australian economy was included in the December mid-year review of the 1997/98 budget and economic outlook.

"You must remember though Australia remains a very competitive exporter and we're pushing beyond Indonesia, beyond Thailand, beyond Malaysia, beyond the Philippines to other parts of the world and doing so with some good success," he said.

Fischer said the government remained "sensibly confident" about the country's economic prospects, even when allowing for the Asian turmoil, although ongoing assessments were being made.

In its mid-year review for the fiscal year to June 30, the government maintained its growth forecast of 3.75 percent, but reduced forecast growth for 1998/99 to 3.25 percent from earlier projections of 3.5 percent because of the regional turmoil.