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.