Fri, 21 Feb 1997

Laos, Indonesia promise to boost economic ties

JAKARTA (JP): Indonesia and Laos expressed their commitment to expand economic ties yesterday and confidence that bilateral relations would continue to grow given the absence of any impeding factors.

During President Soeharto's meetings with Laotian President Nouhak Phoumsavanh and, later, Prime Minister Khamtay Siphandone, the two sides agreed that efforts should be made to boost the economic side of relations.

Soeharto was in Vientiane yesterday on the second-leg of a three-nation tour which also includes Cambodia and Myanmar.

The tour is seen by many observers as a precursor to the three countries' impending admission into the Association of Southeast Asian Nations (ASEAN).

While officials have declined to declare the exact timing of the admission of new members, many observers believe it will occur later this year, either at the ASEAN Ministerial Meeting in July or at the ASEAN commemorative summit in December. Both events are to be held in Kuala Lumpur.

Formed in 1967, ASEAN currently groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Appreciation

Indonesia's Minister/State Secretary Moerdiono said the Laotian leaders had expressed their appreciation at Indonesia's strong support for Laos' entry into the association.

He added that Soeharto's first ever visit to Laos is seen by both sides as historic, and is expected to help further strengthen relations between the two southeast Asian countries.

Soeharto arrived in Vientiane Thursday after a three-day stay in Phnom Penh. He is scheduled to fly to Yangon later today and return to Jakarta on Sunday.

Soeharto's 46-person delegation on his week-long tour includes Moerdiono, Minister of Foreign Affairs Ali Alatas, his daughter Siti Hardiyanti Rukmana and son-in-law Prabowo Subianto.

After his talks with the Laotian President and Prime Minister yesterday, Soeharto witnessed the signing of Memorandums of Understandings (MOU), which would be the first step to strengthened economic relations.

As reported by Antara, the MOUs were signed by Alatas and Laotian foreign minister Somsavat Lengsavadh and cover agriculture and forestry cooperation.

Moerdiono said Laos was interested in Indonesia's successful development of its intensive agriculture sector.

Recently 15 Laotian farmers came to Indonesia on a work-study program to learn more about the farming techniques. Moerdiono added that Laos was also interested in learning more about the fisheries sector.

Alatas said one area of cooperation that had been agreed on was a joint venture project to set up a cement factory. However, the foreign minister would not elaborate further, saying only that the project now had to be followed up by the private sector. (mds)