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.