China to give $3m aid to RI

China to give $3m aid to RI

BEIJING (Dow Jones): China will give Indonesia US$3 million in emergency food and medical aid and is ready to provide export credit to help the financially battered country, China's foreign ministry announced yesterday.

"The Chinese government and people express their deep concern and sympathy with the economic difficulties in Indonesia caused by the Southeast Asian financial crisis," foreign ministry spokesman Zhu Bangzao said in announcing the aid package.

The package expresses "the friendly sentiment of the Chinese people toward the Indonesian people," Zhu added.

Zhu said China also pledged to continue to cultivate economic ties with Indonesia despite the country's economic and social turbulence.

"China attaches great importance to developing friendly relations with Indonesia," Zhu said. China is willing "to strengthen economic cooperation and trade with Indonesia through export credit or barter", he added.

Calling newly reelected President Soeharto an "outstanding leader", Zhu said that China was confident the country's economic problems would be resolved.

"We believe under the leadership of President Soeharto and through its own efforts, Indonesia will overcome its present difficulties and bring its economy on the path of firm development," Zhu said.

Last October, China contributed an undisclosed amount to a $43 billion International Monetary Fund-sponsored package for Indonesia.

Last August, China contributed $1 billion to a $16.7 billion IMF bailout package to Thailand.