Leaders arrive for ASEM

Leaders arrive for ASEM

By Meidyatama Suryodiningrat and Riyadi

BANGKOK (JP): President Soeharto was among the visiting 25
government leaders who arrived yesterday to attend the opening of
the inaugural summit of Asian and European leaders.

Traveling on a private plane, Soeharto touched down in Bangkok
accompanied by Minister of Foreign Affairs Ali Alatas and
Minister/State Secretary Moerdiono.

Amid the tight security net placed to receive the presidents
and prime ministers, he was taken to the Shangri-la Hotel, one of
the half dozen hotels in Bangkok designated to accommodate the
leaders. Malaysian Prime Minister Mahathir Mohamad, Singaporean
Goh Chok Tong and Chinese Premier Li Peng are staying in the same
hotel.

The 25 countries taking part in the meeting are Austria,
Belgium, Britain, Brunei, China, Denmark, Finland, France,
Germany, Greece, Indonesia, Ireland, Italy, Japan, Luxembourg,
Jean-Claude Juncker, Malaysia, Netherlands, Philippines,
Portugal, Singapore, South Korea, Spain, Sweden, Thailand and
Vietnam.

All are represented either by their head of state or
government except Denmark, Greece, Spain and Sweden who sent
ministerial level officials. The President of the European
Commission Jacques Santer will also participate.

The summit is aimed at forging closer cooperation and dialog
to promote economic growth between the two regions.

After a brief rest, Soeharto's had a bilateral meeting with
Austria's Chancellor Franz Vranitzky.

Moerdiono told journalists that Soeharto explained the need
for European states to understand the different levels of
development in Asian states and called on Austria to invest in
the region.

Later in the evening, Soeharto and the other leaders attended
an informal dinner hosted by Thai Prime Minister Banharn Silpa-
Archa.

The dinner gave the leaders a chance to confer with each other
in a relaxed atmosphere on the possible topics to be discussed at
this morning's meeting.

Foreign Minister Ali Alatas earlier told reporters that
Indonesia was not afraid to argue the issue of East Timor if the
issue was brought up by Portugal.

When asked, he said no bilateral talks were planned between
Soeharto and Portuguese Prime Minister Antonio Guterres. "Of
course we shall meet them during the meetings," he added.

Before returning to Jakarta tomorrow after the end of the
summit, Soeharto is scheduled to hold bilateral talks with
Premier Li Peng and French President Jacques Chirac.

Economic issues

Speaking on one of the economic issues likely to be discussed
during the summit, Moerdiono said Indonesia opposes the European
Union's (EU) proposal to establish a multilateral treaty on
foreign direct investment.

The EU proposal is for a treaty to be created by the World
Trade Organization (WTO) member countries to guarantee the rights
of foreign investors to enter and establish themselves in all WTO
countries, and to be given "national treatment".

Non-governmental organizations (NGO) at a pre-summit meeting
have already spoken out against the EU proposal, pointing out
that it would abolish the power and legitimate right of states
and peoples to regulate the entry, conditions, behavior and
operation of foreign companies and foreigners in their countries.

"This time our position on multilateral agreement on foreign
direct investment is the same with that of the NGOs," Moerdiono
told journalists.

Such an agreement has two negative consequences, Moerdiono
said. First, foreign investments and investors would be very well
protected, while the people and the country where the investments
are located would not. Second, foreign capital could enter all
sectors unimpeded, which would threaten the existence of small
and medium enterprises.

"Therefore, Indonesia would hesitate very much before
endorsing such an agreement on foreign direct investment,"
Moerdiono said.

An informed source said here that not all Asian countries
participating in the summit are opposed to the European plan.
Japan and Singapore, for example, are ready to accept it because
many of their large companies invest a lot of money abroad.

Coordinating Minister of Production and Distribution Hartarto
said that although Asian countries differ in their position on
the European plan, everyone agreed that there is a need to
bolster investment flows between the two continents.

Regard -- Page 5

Draft -- Page 11