RI urges Third World debt cuts

RI urges Third World debt cuts

COPENHAGEN (JP): President Soeharto used the World Conference on Social Development once again yesterday to press for reductions in the foreign debts of developing countries.

As one of the first leaders to take the podium at the Social Summit, Soeharto wore his chairman of the Non Aligned Movement (NAM) hat by raising issues of concern to the 111-nation movement.

He urged industrial nations to adopt freer trade and help developing countries to improve their human resources in order to alleviate poverty.

In his address to 130 world leaders, he said the United Nations should improve its role in the creation of better conditions for the global society.

Soeharto was the fourth speaker, after opening remarks by UN Secretary-General Boutros Boutros-Ghali and addresses by Danish Prime Minister Paul Nyrup Rasmussen and Chilean President Eduardo Frei Ruis Tagle.

"I want to emphasize that the reduction of the burdens of heavily debt ridden developing nations is a must. Partial solution to this problem will never be adequate," he said.

Soeharto underlined that NAM, at its 10th summit meeting in Jakarta in 1992, put high priority on efforts to seek reduction of the debts of its 111 member countries.

"If the debt burdens are not soon resolved, the debt crisis will continue hampering the process of development, which in turn will affect their economies as well as their social spectrums," he said.

"I, therefore, want to underline the importance of international financial institutions taking new measures of reducing the debt burdens of and expanding concessional loans to developing nations," he said.

He added that such measures would not affect the credit ratings of the institutions, nor the creditworthiness of the debtor countries.

Soeharto said the adoption of a free and open system based on non-discriminatory regulations would also help improve the economic conditions of developing countries.

Acknowledging that the new General Agreement on Tariffs and Trade (GATT) has been signed, he said "we all still have to work hard to implement the agreement reached in the Uruguay Round of GATT negotiations."

"In this respect, NAM members see the importance of the liberalization of trade in agricultural products," he said. "Improvement in the flows of trade and investments among nations will increase their welfare because it will alleviate poverty and create job opportunities."

Soeharto also called on the leaders of industrial countries to help improve the human resources of developing nations through cooperation in the development of educational systems. "Developing countries are facing problems related to the shortage of funds and infrastructure in their efforts to improve education."

The President urged the UN to improve its role in helping solve the problems of developing nations. "The United Nations should not only help countries which are facing turbulence but should also create a new world order."

Indonesia will actively involve itself in constructive cooperation to create a better global society.

He said Indonesia will support all of the agreements to be reached in the Copenhagen summit meeting. "Indonesia hopes that all the heads of state/government will implement the Program of Action, which will be an integrated part of the Declaration of the World Summit for Social Development."