Japan grapples with RI aid

Japan grapples with RI aid

TOKYO (AFP): Japan is discussing how to carry out its promise
of a 600-million-dollar social "safety net" loan to crisis-struck
Indonesia, a government official said here Tuesday.

He denied some reports that Tokyo had suspended the loan,
promised in late July, due to the violence sweeping through East
Timor and an 80-million-dollar Bank Bali corruption scandal.

"We are continuing consultations on how to implement the
pledge but we have not suspended anything," said a Japanese
foreign ministry official from the overseas aid division.

"We have not made any decision with regards to East Timor," he
added.

The $600 million social safety net adjustment loan to
Indonesia was promised in late July but has yet to be formally
agreed with an exchange of documents, he said.

In late July, Japan pledged a total of $1.57 billion in aid to
Indonesia for the year to March 2000.

The amount was pledged as part of Tokyo's aid commitments at
the Consultative Group (CGI) on Indonesia meeting in Paris.

The total aid figure included direct foreign aid of $1.57
billion and about 100 million in non-direct foreign aid.

The direct aid contribution included a 72 billion yen ($600
million) loan for Indonesia's social safety net program, 18
billion yen for a health and nutrition program and 81 billion yen
for "ongoing projects".