Tue, 04 Oct 1994

Czech PM arrives on trade mission

JAKARTA (JP): Czech Prime Minister Vaclav Claus arrived here yesterday to begin a three day state visit aimed at improving bilateral ties between the two countries.

"I am sure there will be many possibilities to broaden and deepen our relationship," Claus said during a banquet at the State Palace yesterday evening.

He said that even though several projects involving Czech participation already exist, economic cooperation must still be intensified to stimulate a larger exchange of goods.

Arriving nearly an hour late, the Premier and his wife were greeted with full military honors by the President and Mrs Tien Soeharto along with the Vice President and Mrs Try Sutrisno at Merdeka Palace yesterday afternoon.

Their first day here consisted of a rather light schedule of touring the sites at the Indonesia Miniature Park and attending a tree planting at the Central Java pavilion.

At the evening's banquet, Klaus stated he had come for two reasons: to learn more about the country and to promote the Czech Republic as "the most stable country in Central Europe."

"Our country is the only country in Central and Eastern Europe which has succeeded in achieving political and economic stability," he said.

At the end of the communist regime in 1989, the former Czechoslovakia split into the Czech and Slovak Republics. The new Czech Republic quickly undertook massive political and economic revamping to allow for the implementation of a market oriented economy.

"The Czech experience proves that fundamental changes can be made without causing unnecessary damage, pain and casualties," President Soeharto said at the banquet, stating that these accomplishments were in part due to the wise leadership of Klaus.

Accompanying the prime minister on his trip is a large delegation of nearly 50 businessmen.

It is expected that during tomorrow's meeting, the two leaders will discuss concrete ways of improving commercial ties.

Trade between the two countries last year reached US$30 million with the Czech Republic running a $4 million surplus. Total bilateral trade this year is expected to increase to $35 million.

Minister/State Secretary Moerdiono, though confident about the prospects of improving trading links, acknowledged that a number of hurdles still exist.

"Geographically there's a huge distance between us and the commodities we can sell are relatively limited in terms of variety," he said.

Prime Minister Claus is also scheduled to meet with the Indonesian Chamber of Commerce and Industry later today before continuing his Asian tour tomorrow to China and Korea.(mds)