Indonesia, Vietnam seal one-year rice deal

HANOI (JP): Indonesia's State Logistics Agency (Bulog) signed here on Wednesday a one-year deal to import 500,000 tons of rice from state-run Vietnam Southern Food Corp (Vinafood 2).

Bulog would start importing the rice next year, but the size will be adjusted to the country's domestic needs, according to Bulog chairman Widjanarko Puspoyo.

Widjanarko, however, refused to mention the pricing, but said that the payment would be made two years after the shipment.

Bulog had said previously it did not plan to import rice during the next two years because of sufficient stocks and to protect local farmers from cheap imports.

Indonesia was importing rice from a number of countries, including Vietnam, during domestic troubles in 1998-1999.

The signing of the rice-purchase agreement in Hanoi was witnessed by visiting Indonesian President Megawati Soekarnoputri, her counterpart President Tran Duc Luong and officials from both countries.

Megawati arrived in Vietnam earlier on Wednesday for a brief visit.

In Hanoi, Megawati held bilateral talks with Tran Duc Luong and with Prime Minister Phan Van Kai.

During their talks, according to State/Cabinet Secretary Bambang Kesowo, Megawati asked Vietnamese leaders to complete bilateral talks on establishing borders between the two countries in the South China Sea.

Megawati also invited her counterpart to visit Jakarta, which was responded positively by the Vietnamese president. He promised to find time to visit Indonesia.

From Hanoi, Megawati then headed to the capital of Laos, Vientiane. The President's entourage, however, arrived almost one-hour late because her plane had to wait for a car carrying a group of journalists, which had broken down on the way to Hanoi's Noi Bai Airport.

In Vientiane, Megawati held talks with President Khamtay Siphandone and Prime Minister Bougnang Vorachit.

Megawati's visit to Laos is the third leg of her Southeast Asian tour after Vietnam and the Philippines.

In Manila, according to Bambang Kesowo, Megawati asked President Gloria Macapagal Arroyo to help prevent arms smuggling across their respective borders.

Bambang told the media on board the Garuda Boeing 737-400 carrying the President and her entourage from Manila to Hanoi that the President had made the request during their talks at Malacanang Palace on Tuesday evening.

Megawati expressed concern following reports of increasing illegal arms trade across the borders of the two nations.

Reports have claimed that arms smuggling was rampant, particularly following the wave of violence in the southern Philippines and Indonesia's regions of Maluku, Kalimantan, Aceh and Irian Jaya.

"This matter is certainly not expected to jeopardize the stability of both countries, especially in certain nearby areas, such as the southern Philippines," Bambang said.

The official said Arroyo agreed to provide the necessary assistance, as the Philippine president thought that a joint effort must be initiated in order to overcome such illegal activities.

Megawati also discussed violations of maritime borders, as well as separatist issues, Bambang added. (dja)