Japan seeks RI support on APEC liberalization

Japan seeks RI support on APEC liberalization

TOKYO (Reuters): Japanese Prime Minister Keizo Obuchi on
Thursday sought Indonesia's support for Japan's refusal to take
part in a liberalization scheme under the Asia Pacific Economic
Cooperation forum (APEC), Japanese media said.

In talks with Indonesia's Chief Economics Minister Ginandjar
Kartasasmita in Tokyo, Obuchi said that instead of the early
voluntary sector liberalization agreed in principle by APEC,
members should agree to honor the principle of voluntarism in
liberalizing markets. Otherwise there could be problems for
domestic industry in some cases, Kyodo news agency quoted Foreign
Ministry officials as saying.

Obuchi said this would be particularly true of fishery and
forestry products, two of the nine sectors involved, Kyodo said.

Ginandjar promised Obuchi he would convey Obuchi's request to
Indonesian President B. J. Habibie when he returns home Sunday
after a four-day visit to Japan, Kyodo quoted the officials as
saying.

APEC leaders agreed in principle on the liberalization scheme
at meetings in Vancouver in November 1997, but Japan is now
opposed, partly due to a group of ruling party lawmakers who
represent Japan's farming lobby. They oppose Japan giving in to
further trade liberalization and tariff reduction or elimination
in those two product areas.

Ginandjar also expressed gratitude for a Japanese decision on
Thursday to provide 400,000 tons of rice as additional aid to
Indonesia, Kyodo said.

Half of this will be lent in kind, while the remainder will be
purchased with yen loans from Japan.

The 200,000 tons to be lent in kind will consist of 120,000
tons of domestically grown rice and 80,000 tons of imported rice,
Kyodo quoted officials as saying

Japan provided 600,000 tons of rice to Indonesia earlier this
year.