Thu, 02 Jan 1997

PM Chavalit expected today for two-day visit

JAKARTA (JP): Thai Prime Minister Chavalit Yongchaiyudh is slated to begin a two-day visit to Indonesia at the invitation of President Soeharto today, Minister/State Secretary Moerdiono announced Tuesday.

Besides giving a chance to get acquainted, the visit will allow the two leaders to strengthen the friendly relations between the two countries, Moerdiono said.

The minister said this will be Chavalit's first overseas visit since he was appointed prime minister of a coalition government on Dec. 1.

His entourage is expected to include his wife Khunying Phankrua Yongchaiyudh, foreign minister Prachuab Chaiyasan, and Boonchong Veesomma, secretary-general to the prime minister's office, according to Moerdiono.

Chavalit, a former army general, was defense minister in the previous coalition cabinet under prime minister Banharn Silpa- archa. The New Aspiration Party, of which he is chairman, won the November election by enough of a margin, to earn him the right to form a government.

In spite of the election outcome, Banharn still represented Thailand during the meeting of leaders of the Asia-Pacific Economic Cooperation forum in Manila and the informal summit of the Association of Southeast Asian Nations in Jakarta, both in late November.

President Soeharto is scheduled to host a dinner for his guest at the State Palace tonight.

Talks between the two leaders are scheduled for tomorrow morning. Chavalit will fly home later in the afternoon.

There is now a growing presence of Thai corporations in Indonesia. Thailand's private investment in Indonesia reached $2.2 billion in 26 projects, according to the Investment Coordinating Board.

The two countries bilateral trade is also rising significantly. Last year Indonesia struck up a barter deal with Thailand, exchanging locally manufactured small planes for Thailand's glutinous rice.

Meanwhile, in Tokyo, Japanese Prime Minister Ryutaro Hashimoto announced Tuesday he would go ahead with a five-nation Asian tour next week despite the Lima hostage crisis, Reuters reported.

The trip, starting on Jan. 7, will take Hashimoto to Brunei, Singapore, Malaysia, Indonesia and Vietnam.

Earlier this week, at the height of the Lima hostage siege, foreign ministry officials had said Hashimoto was considering canceling the trip because of the almost 14-day-long siege at the Japanese ambassador's residence in Lima.

"I am going ahead with the trip," Hashimoto told reporters. "I place my entire trust in Peruvian President Alberto Fujimori and have made arrangements so I can always be contacted."

Hashimoto's decision to proceed with the tour appeared to be a sign that the siege might be near an end. (emb)