Australia to help crisis-hit nations

Australia to help crisis-hit nations

CANBERRA (Dow Jones): The Australian government on Monday said
it will spend A$50 million over three years to assist members of
the Asia-Pacific Economic Cooperation forum hurt by the regional
economic crisis, for strengthening their economic and financial
management.

Prime Minister John Howard in a statement issued in Canberra
said the aid will target countries in need of technical
assistance, including China, Indonesia, Thailand, the
Philippines, Vietnam, Malaysia, South Korea and Papua New Guinea.

Howard is in Kuala Lumpur for a meeting of APEC leaders.

The economic and financial management initiative will help
APEC members take practical measures to strengthen their economic
and financial management," Howard said.

"Improved economic governance, and in particular strong
supervisory and prudential institutions will be vital to
achieving a return to sustainable growth."

Howard said assistance for nations would include training of
central bank officials and technical assistance for prudential
supervision programs.

The Reserve Bank of Australia has sent officials to offer
similar assistance to nations in the region affected by the
crisis since it began in mid-1997.

Howard said the A$50 million package will be funded from
Australia's existing aid budget, and represents a further
contribution by his government to overcoming economic
difficulties in the Asian region.

Australia contributed up to US$1 billion apiece to
International Monetary Fund-sponsored aid packages for South
Korea, Thailand and Indonesia.

Meanwhile, Taiwan's top representative at APEC said on Monday
the island's US$300 million aid package for troubled Southeast
Asian economies mainly will come from private channels.

Chiang Pin-kung, chairman of the Council for Economic Planning
and Development, told Dow Jones Newswires that banks and
businesses are the best vehicle for getting money to crisis-
struck countries.

"The private sector has a lot of money," he said. "The problem
is security" of private investments.

Chiang said Southeast Asia Investment Holding Corp., the
government vehicle to disburse the aid, will take stakes in
regional companies, primarily through equity investments.