Germany's Schroeder heads to Southeast Asia

Germany's Schroeder heads to Southeast Asia

Agence France-Presse, Berlin

With a wary eye on the Severe Acute Respiratory Syndrome (SARS) crisis, German Chancellor Gerhard Schroeder sets off this weekend on a four-nation mission to Southeast Asia designed to drum up business for his country's stuttering economy.

The chancellor leaves on late Saturday for Malaysia, Singapore, Indonesia and Vietnam, returning here early on May 16 for likely talks with visiting U.S. Secretary of State Colin Powell.

His talks with prime ministers, a president and other senior officials will include Iraq, the war on terror and general political dialog.

But government officials here make it clear that this is primarily a trade mission, with Schroeder keen both to push German participation in projects in Southeast Asia and encourage more investment in the opposite direction.

Germany's trade volume with Southeast Asia is higher than with the United States, and is one reason why the chancellor decided not to call off the trip despite the ravages of SARS, which has hit the four states he is visiting.

Last year German trade with Singapore was 7.7 billion euros, with Malaysia six billion, with Indonesia 3.7 billion and with Vietnam 1.7 billion.

Direct German investment was 4.3 billion euros in Singapore, 1.3 billion in Malaysia, 440 million in Indonesia and 40 million in Vietnam.

They are figures Berlin is keen to increase.

From Indonesia could come contracts for Germany's struggling ship-building sector; from Malaysia, the railway deal; from Vietnam, a role in projects from drinking water supplies to energy as well as a slice of privatization.

On the political level, government sources said Schroeder's talks with the prime ministers of Malaysia, Singapore and Vietnam, the Indonesian president and the head of Vietnam's communist party will range from Iraq and the war on terror to bilateral and European Union (EU) cooperation, the environment and human rights.