Claims of U.S. apathy over crisis rejected

Claims of U.S. apathy over crisis rejected

BANGKOK (AFP): U.S. special envoy Larry Summers rejected yesterday claims of U.S. apathy to Asia's financial crisis, saying Washington had a major stake in the stricken region and would ensure adequate financial support.

Deputy Treasury Secretary Summers also gave a vote of confidence to the Thai government's efforts to implement its crucial International Monetary Fund (IMF) package, saying he was "very impressed" with its progress.

"The U.S. has a very great stake in the prosperity of Asia," he said after meeting Prime Minister Chuan Leekpai, his economic "dream team" and his foreign minister during a lightning visit here as President Bill Clinton's emissary.

"For trade reasons, for reasons of financial stability and for reasons of national security, the U.S. has a very large stake in Asia's prosperity and stability.

"There is no question that this is a critical foreign policy priority for the U.S."

Summers, on a hurried Asian sweep aimed at emphasizing U.S. support for the crisis-ridden countries of the region, said Clinton had sent him here as Thailand was an "important ally" and because "we have an important stake in Thailand's economic reform."

"We underscored in our talks with Thai officials that financial stability in Thailand remains enormously important to the U.S.," he said.

Thai officials at the talks Wednesday told AFP Summers had emphasized the need for Thailand to continue with the IMF reforms.

The official said Chuan told the U.S. envoy that the "Thai media and people had criticized the United States for offering too little help to Thailand compared to other countries."

But he told Summers that he understood "the limitations of the U.S. government" caused by a reticence of Congress to get involved.

Thailand's major English-language dailies Wednesday morning slammed the United States' "hands off approach" to the economic downturn and warned of a "backlash of resentment" against Washington.

Media claims that Thailand wanted the United States to help with further injections of capital under the IMF program were denied by senior government officials who attended Wednesday's meeting.

Tarrin however confirmed that he would meet U.S. Secretary of State Madeleine Albright in Washington, and officials from the National Security Council, the IMF, World Bank and the International Finance Corporation.

The minister and other officials have said they want to see a review of some of the tough conditions imposed by the IMF on Bangkok in return for its US$17.2 billion rescue package.

Summers took pains to stress that Washington had not overlooked the gravity of Thailand's problems and would be discussing them with Finance Minister Tarrin Nimmanaheminda during a visit to Washington next week.

"The U.S. ...will remain active in encouraging Thailand's reform efforts under the IMF program," he said, adding that Washington was "very much looking forward" to Tarrin's trip.

Summers refused to be drawn on any specific U.S. plan to inject more cash into the region, saying however that Washington would back IMF efforts in Thailand, Indonesia and South Korea.