RI to sell food, medicine to Iraq

RI to sell food, medicine to Iraq

JAKARTA (JP): Minister of Industry and Trade, Tunky Ariwibowo,
and Iraq's Minister of Trade, Mohammed Mehdi Saleh, yesterday
agreed that Indonesia could sell food and medicine to Iraq.

"Indonesia has the opportunity to sell food and medicine to
Iraq according to the Oil for Food Arrangement policy set by the
United Nations (UN)," Tunky said after a two-day joint commission
session on economic, scientific and technical cooperation.

The UN has allowed Iraq to sell US$4 billion worth of oil each
year to purchase food and medicine lifting its embargo on Iraqi
exports because of its invasion of Kuwait in August 1990.

"Both parties have agreed to increase bilateral trade to at
least to the same level as before the UN embargo was imposed,"
said Tunky.

Minister Saleh said his country would use $1.35 billion from
oil sales to purchase wheat, rice and sugar.

Tunky said the Iraqi minister conveyed a message from
President Saddam Hussein saying that Indonesia has priority to
supply food and medicines as scheduled in the Oil for Food
Arrangement.

Tunky said both parties have agreed to hold trade missions and
participate in international trade and industry exhibitions,
including the Resource Indonesia and Islamic Trade fair in
Jakarta in October 1996 and the Baghdad International Fair in
November.

Both parties have also discussed long-term cooperation in
petrochemical, textile, heavy equipment and power generation,
engineering, agricultural, forestry and pharmaceutical sectors.

They will further discuss the possibility of oil exploration
in both countries. The Iraqi minister also invited Indonesian
firms to cooperate in aircraft maintenance.

State-owned PT Indofarma has offered to sell medicines to
Iraq.

Saleh invited Indonesian companies to visit Iraq. If they sell
goods in Iraq, the Iraqi government will order its central bank
to provide letters of credit.(kod)