Clinton denies funds steer policy on Indonesia

Clinton denies funds steer policy on Indonesia

WASHINGTON (Reuter): President Bill Clinton denies that any contributions to the Democratic Party from an Indonesian businessman influenced U.S. policy toward Indonesia.

"The answer to that is absolutely not," Clinton told a news conference on Friday at which he was peppered with questions about questionable contributions to the Democratic Party.

Republicans have raised questions as to whether the family of Indonesian businessman James Riady, who has longstanding ties to Clinton, influenced U.S. policy toward Indonesia by contributing $475,000 to the Democratic Party and its candidates since 1991.

Clinton made a case that U.S. policy toward Indonesia had actually been tougher under his presidency than his predecessor George Bush.

America decided not to sell small arms to Indonesia because of questionable human rights practices in East Timor, a former Portuguese policy seeking independence from Indonesia. He said the United States also co-sponsored a UN resolution in favor of improved human rights for East Timor.

"I'm proud that we did that so I can tell you categorically that there was no influence," he said.

The Justice Department on Friday rejected a request by the citizen's lobbying group Common Cause for an independent counsel to investigate alleged violations of finance laws by both the Democratic and Republican presidential campaigns.

But Attorney General Janet Reno was still considering a separate request by five congressional Republicans for an independent counsel to investigate allegations that the Democrats engaged in illegal fund-raising activities.