Goh asked to explain RI aid plan in parliament

Goh asked to explain RI aid plan in parliament

SINGAPORE (AFP): Singapore Prime Minister Goh Chok Tong was asked yesterday to explain to parliament his proposal for Singapore and other countries to guarantee payments for Indonesia's imports.

"Will the Prime Minister say whether he intends to seek parliamentary and presidential approval before his government gives any guarantee?" opposition Workers' Party secretary-general J. B. Jeyaretnam asked in a statement.

Singapore's elected President Ong Teng Cheong is empowered to, among others, veto government budgets.

Jeyaretnam, also an MP, urged Goh to make a "full statement" on the matter in parliament, scheduled to meet on Feb. 19.

Goh on Tuesday announced a Singapore initiative to help Indonesia "unlock" part of its international financial crisis -- a scheme involving several countries that would guarantee payment for Indonesian imports.

Under the proposal, disclosed after talks with Indonesian President Soeharto, up to US$20 billion would be provided to Indonesia's central bank in foreign guarantees.

Jakarta had said last week that it would guarantee all deposits and debts of Indonesian banks, but many foreign banks were still not accepting their letters of credit.

Goh said that a system of multilateral guarantees for Indonesian letters of credit would enable Indonesia to import components vital for its export trade.

"Clearly Mr. Goh's plan must imply that Singapore is ready to give any such guarantee," Jeyaretnam said.

The opposition leader said he wondered whether Goh thought his government could give any guarantee without seeking parliamentary and presidential approval.

Finance Minister Richard Hu had told parliament in November last year that presidential approval was not necessary when Singapore offered a $5 billion loan as part of a $40 billion International Monetary Fund rescue plan for Indonesia.