Hashimoto tells Clinton of worries over SE Asia
Hashimoto tells Clinton of worries over SE Asia
TOKYO (Reuters): Prime Minister Ryutaro Hashimoto told U.S. President Bill Clinton in a telephone conversation yesterday that Japan was worried about the financial crisis in Southeast Asia, a Japanese government source said.
Hashimoto also pledged to Clinton that Japan would continue to take all steps needed to support those nations which are in economic trouble, the source said.
"We are worried about the situation, and we will take various measures," Hashimoto was quoted by the source as telling Clinton.
The phone call was the latest sign of how world leaders are increasingly coordinating their action to head off the so-called Asian "contagion" spreading to the rest of the globe.
The source said Hashimoto told Clinton how important it was that Indonesia adhere to International Monetary Fund (IMF) recommendations on reforming its economy.
Japan is Indonesia's largest creditor with billions of dollars tied up in loans there.
"It is important for Indonesia to adhere to the (IMF) agreement," Hashimoto was also quoted as telling the U.S. president.
The two leaders did not discuss Japan's economic or financial situation in their telephone call, the source said.
The gist of the call was to confirm with each other the contents of their respective conversations held earlier with Indonesian President Soeharto, the source said.
On Monday, Soeharto made calls to Hashimoto and German Chancellor Helmut Kohl on the crisis after Clinton had called the Indonesian leader last Friday.
The source did not give any details of what Clinton said in response to Hashimoto's comments on the Asian situation.
An official at the Japanese Foreign Ministry said the call was made by Hashimoto, and that he and Clinton agreed to continue exchanging views on the situation in Asia including the economic and financial crisis.
A team of U.S. officials, led by Deputy Treasury Secretary Lawrence Summers, is visiting Indonesia this week for talks with Soeharto about the necessity of Indonesia introducing economic reforms.
An IMF team is also in Jakarta and held talks with Soeharto on Monday.
President Bill Clinton urged Asian leaders Monday to comply with the International Monetary Fund's economic reform demands to stem the deepening financial crisis in the region.
"We can restore stability if the countries will take the steps that are necessary. The IMF reform packages have to be followed," Clinton said during a White House ceremony.
"The most important thing that has to be done is that all the countries affected have to make sure they have the very best policies ... things that will inspire investor confidence," he was quoted AFP as saying.
The president noted that he has been briefed on Monday's visit by U.S. Deputy Treasury Secretary Lawrence Summers to Jakarta for talks with President Soeharto.
"We are working hard on it," he said.