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."