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Habibie's visit to Australia seen as a 'milestone' in bilateral ties

Habibie's visit to Australia seen as a 'milestone' in bilateral ties

SYDNEY (Reuter): Indonesia's State Minister of Research and
Technology B.J. Habibie is due in Australia tomorrow amid heavy
security in a trip seen as a milestone in bilateral ties and a
test run for a state visit by Indonesian President Soeharto.

Details of Habibie's 10-day, four-state trip have not been
released. Media inquiries get a "need to know" response as
officials strive to avoid protests by resident East Timorese.

A government spokesman said the security was to avoid any
incidents that would embarrass Habibie.

"This is a very, very significant milestone in Australia's
relations with Indonesia," said Larry Strange, director of the
Asia-Australia Institute in Sydney.

The visit is Habibie's first to Australia, he added.

"Habibie is a very close adviser to President Soeharto and in
that sense it has great significance because he will directly
consult with the president on his return," Strange told Reuters
yesterday.

Indonesia is Australia's 12th largest trading partner, with
bilateral trade in 1994 valued at A$3.04 billion (US$2.22
billion), up four percent on 1993. Australia is Indonesia's
eighth largest trading partner.

The trading relationship has traditionally been narrow,
concentrating on primary products, but is expanding to include
manufactured goods, semi-processed goods and technology as
Indonesia's economy booms and an affluent middle class grows.

"Habibie's visit itself is, in part, a recognition of
Australia's growing reputation as a center of science and
technology excellence," said Australian Industry, Science and
Technology Minister Peter Cook, who is sponsoring the visit.

Habibie, who will head a delegation of 75 to 100 mainly
experts in science, technology and industry, told reporters in
Jakarta yesterday the purpose of his visit was to boost
cooperation in technology and sea and land transportation.

Habibie will spend three days in Adelaide, where Australia
makes the Collins class submarines it is trying to sell to Asia.

Indonesia has only two subs and wants to boost its navy.

Habibie is also interested in selling Indonesian CN-235
aircraft to the Australian military, which is looking to replace
its two squadrons of DHC-4 Caribou.

Military links have increased rapidly in recent years, with
Australia now replacing the United States as the primary source
of military training for Indonesia.

U.S. training was withdrawn by Washington in 1992 in protest
against the way Jakarta handled a riot in Dili, capital of East
Timor, in November 1991.

Australia recognizes Jakarta's sovereignty over East Timor,
which was integrated into the republic in 1976. The United
Nations still recognizes Portugal as the ex-colony's
administrator.

Indonesia is seen by Australia as not only a major trading
partner, but a key ally in its push to be accepted in Asia.

"No country is more important to Australia than Indonesia,"
says Australian Prime Minister Paul Keating. "If we fail to get
this relationship right and nurture and develop it, the whole web
of our foreign relations in incomplete."

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