U.S. gives approval to RI's reform package

JAKARTA (JP): United States Deputy Secretary of State Strobe Talbott, after a 40-minute meeting with President Soeharto, said he felt reassured about Indonesia's economic reform package.

"We come away with a sense of real determination on the part of the Indonesian government to stick with it," Talbott told journalists of his meeting with Soeharto at the State Palace yesterday.

He said the meeting had been candid and business-like, and he had further conveyed to Soeharto Washington's desire to lend its assistance.

"We expressed the support of the U.S. government to resolve the economic situation," Talbott remarked.

Talbott arrived here Wednesday as part of a seven-nation Asian tour.

His arrival comes on the heels of an announcement by Jakarta of massive economic reforms due to the acute financial crisis.

A US$23 billion International Monetary Fund-sponsored bailout package has also been made available to Indonesia to counter the crisis.

Talbott said Wednesday he supported Indonesia's moves adding that while the steps taken might involve short-term pain, economic recovery take place more quickly.

Yesterday, he claimed to be "favorably impressed" by the explanations given to him on the steps taken by the Indonesian government.

Washington has also made a $3 billion contingency financial aid offer if Indonesia needs to bolster its reserves.

Talbott said the U.S. would be willing to help further with technical aid for the implementation of its reforms by sending experts from the Federal Reserve and the Federal Deposit Insurance Corporation.

Speaking on the overall state of Indonesian-American bilateral ties, Talbott said Washington attached great importance to the relationship which was getting stronger.

He noted that U.S. Defense Secretary William Cohen would be arriving here for a visit on Nov. 20.

Despite Talbott's assertions of strong ties, a group of Democratic members in the House of Representatives in Washington criticized Thursday the Clinton administration's $3 billion contingency financial aid offer to Indonesia without requiring Jakarta to improve its human rights record.

Reuters reported that in a letter to Treasury Secretary Robert Rubin, Barney Frank, a Democrat from Massachussetts, urged Washington to withdraw the $3 billion credit line.

The letter asked the administration to do so "until and unless the government of Indonesia agrees to improve its position on workers' rights and stops its oppressive practices and shows respect for the people of East Timor."

The letter was also signed by fellow Democratic Reps. Patrick Kennedy of Rhode Island, Joseph Kennedy of Massachussetts, Nancy Pelosi of California and Tony Hall of Ohio.

Talbott said here yesterday that despite the differences in views concerning human rights, the strong ties between Jakarta and Washington still allow a broad range of cooperation.

While human rights has always been a fundamental concern, said Talbott, "it is also a tenet of American foreign policy that we do what we can to support economic development." (prb/mds)