Taiwan agrees to give Indonesia rice as aid

Taiwan agrees to give Indonesia rice as aid

TAIPEI (Reuters): Taiwan, eager to lend a helping hand to the
financially battered Southeast Asia, said yesterday it would aid
Indonesia with 200,000 tons of rice.

Taiwan's state radio said the agriculture council and foreign
ministry have decided to aid Indonesia with 200,000 tons of rice
worth over US$50 million.

Indonesia could pay for the rice in cash or through a barter
deal, the radio said. It gave no further details.

An official at the Council of Agriculture reached by telephone
declined to confirm the deal but said Taiwan has plenty of rice
in storage.

"The foreign ministry has asked if we have 200,000 tons of
rice and the answer is yes," the council's vice chairman Lin
Shiang-nung said by telephone.

A foreign ministry official said the government was studying
various plans to help.

"We are sincere to help but the deal has not been finalized,"
the official said.

Taiwan, the sixth biggest foreign investor in Indonesia, on
Thursday urged its people to be cautious about investing and
travelling in the riot-torn country.

"We should adopt a wait-and-see attitude for investments and
visits in Indonesia until after the situation calms down,"
Economic Minister Wang Chih-kang told reporters.

Wang, who met a visiting Indonesian delegation led by
Indonesia's Coordinating Minister for Economy, Finance and
Industry Ginandjar Kartasasmita earlier on the day, said the
sides did not discuss a reported "oil for rice" deal.

Taiwan media said Ginandjar, who arrived in Taipei on
Wednesday, would propose giving Taiwan oil in exchange for
200,000 tons of rice during meetings with Taiwan leaders,
including Premier Vincent Siew.

Taiwan imports liquefied natural gas from Indonesia every
year.

Officials declined to reveal Ginandjar's itinerary, citing
political sensitivity.

Indonesia recognises Taipei's arch-rival, the communist
People's Republic of China, not Taiwan's exiled Republic of
China.

Relatively unscathed in Asia's financial turmoil, Taiwan has
used its financial muscle to defy a diplomatic embargo enforced
by rival China, which has warned Southeast Asia not to allow the
wealthy Nationalist-ruled island to exploit their difficulties
for its political gain.