U.S. pledges support to Indonesia

U.S. pledges support to Indonesia

HONG KONG (AFP): A senior U.S official on Saturday expressed concern at food shortages in Indonesia and pledged American support to help strengthen social safety nets around Asia.

State Department assistant secretary Alan Larson, in Hong Kong during a five-nation Asian tour, said the international community is facing its biggest financial crisis in 50 years.

"We are acutely aware that the economic disruptions of the moment have the potential to impose a heavy human cost," he told a breakfast meeting.

"It is important we not lose years of progress in alleviating poverty. It is vital we tackle a problem that, if not addressed, could cause a lost of faith in those free institutions that have done so much to raise living standards and expand personal liberty around the world."

Larson expressed particular concern about rice shortages in Indonesia and said the United States may consider further food aid.

"In Jakarta I will be looking into the rice situation, which is a very important issue," he said, adding instability as a result of hunger could derail efforts at economic reform.

"Depending on whether there was a demonstrated demand and a capacity to deliver we would consider doing more," he said.

The United States has already granted Indonesia US$50 million worth of food aid and has given 5,000 metric tons of wheat.

Sharp rises in the cost of basic food stuffs following the devaluation of the rupiah sparked widespread riots in Indonesia.

"We will intensify our efforts to speed recovery in Asia... while we cooperate to put Asian corporations back to work, we also need to cooperate to protect Asian families through strengthened safety nets," Larson said.

"During my trip to Asia I am going to look into ways that the international community can do more to support employment, facilitate the movement of workers from old jobs to new jobs and protect precious investments in education and health."

Larson emphasized that the United States would also be ready to provide financial assistance if the currency crisis spreads and would help provide trade finance through the U.S. Export Import Bank.

Next month's meeting of the Group of Seven industrialized nations would also look at revisions to the global financial system to help improve transparency and disclosure, he said.