Klestil to boost RI-Austria ties

Klestil to boost RI-Austria ties

JAKARTA (JP): Austrian President Thomas Klestil will hold bilateral talks with President Soeharto at Merdeka Palace this morning to discuss ways to boost economic ties between the two- countries.

Indonesian Minister/State Secretary Moerdiono said yesterday that Jakarta would ask Austria to offset the trade deficit that exists between the two countries and to seek further investments here.

In the past year, trade between Indonesia and Austria grew by about 18 percent to a total of over US$280 million.

"It is part of our foreign trade policy to try and balance our trade account with other countries," Moerdiono said following Klestil's arrival.

Klestil arrived on a three-day visit of Indonesia yesterday with a delegation of some 70 businessmen at the invitation of President Soeharto, who went to Vienna last year.

During a banquet at the State Palace yesterday evening, Soeharto pointed out the potential for increased trade and also congratulated Austria on its membership in the European Union (EU).

"We are confident that Austria's membership in the European Union is not an indicator that Austria intends to pursue a foreign policy that is Euro-centric," Soeharto said.

Klestil noted that following his country's admission into the EU, Austria plans to strengthen its relations in the Southeast Asian region, in particular with Indonesia.

Moerdiono also reported that this morning's meeting between the two heads of state will likely touch on the issue of finding a peaceful solution to civil war in the former Yugoslavian republic.

Klestil will spend the day in Yogyakarta tomorrow to see the Borobudur temple before leaving for Bangkok. (mds)