Chinese government offers Indonesia medical and food aid

JAKARTA (JP): China has pledged to support Indonesia in its time of crisis, offering medical and food aid along with export credit facilities worth US$200 million.

In a media briefing with his visiting Chinese counterpart Tang Jianxun, Minister of Foreign Affairs Ali Alatas said Beijing has offered three forms of bilateral aid to help Indonesia tackle the crisis.

China, he said, would provide grant medicines and food aid worth $3 million.

China would also extend export credit facilities of $200 million spread over a two-year period to facilitate trade between the two countries.

The Chinese government has also offered barter trades, especially for much needed Chinese agricultural products such as sugar and soybeans.

Tang, who arrived here Saturday, said the barter trade scheme would help ease the difficulties being encountered by Indonesia.

The newly appointed Chinese foreign minister also stressed that his government was ready to stand by its policy of not depreciating the Chinese currency.

A decision, he described as a "major sacrifice" for China.

Tang expressed confidence that despite the difficult situation facing it, Indonesia would soon lift itself out of its predicament.

He acknowledged that "the difficulties confronting Indonesia are serious" but "I am confident that Indonesia will recover its economic vigor."

Tang, who is on his first oversees trip as foreign minister, will meet with President Soeharto this morning before leaving later this evening. (mds)