Sat, 02 Apr 1994

U.S. to balance foreign policy objectives

JAKARTA (JP): Policy makers in Washington increasingly seem willing to strike a balance between their push for human rights, democracy and environmental protection and their often conflicting economic goals.

The Clinton administration is now searching for a good formula to continue its human rights campaign without affecting U.S. economic and trade ties with other countries, Indonesian Ambassador to the United States Arifin M. Siregar said here on Thursday.

"We will see what President Bill Clinton will decide in June with regard to China's Most Favored Nation (MFN) trading status," Arifin told a business luncheon hosted by the U.S. Committee of the Indonesian Chamber of Commerce and Industry (Kadin).

The U.S. government has threatened to revoke China's MFN status unless that country improves the protection of human rights. The U.S will make its decision in June.

The American government, while taking a fairly tough outward stance, is privately concerned about the big losses U.S. businessmen might suffer if China's MFN status is not extended. Bilateral trade now exceeds US$40 billion a year and China has been buying more from the U.S. as its economy continues to grow robustly.

The change in the emphasis of American foreign policy objectives can also be seen in a national export strategy that puts trade policy at the leading edge of its foreign policy.

The U.S. administration also has threatened to revoke its Generalized System of Preferences to Indonesia unless improvements are made in the protection of workers rights. The review of the trade incentive was postponed until August after an original February deadline was postponed after Indonesia made some labor law changes.

"I am highly convinced that the U.S. government will extend the GSP trading privilege in August," Arifin said.

Even though Indonesian exports under the scheme amount to about $640 million, 16 percent of total exports to the U.S., a stoppage of the facility would have not only economic but also political impacts, he said.

"The impacts will be enormous," he said in referring to the potential damage of a U.S. decision to stop the GSP facility.

Arifin said apart from what he called "a minor fluctuation" such as the issues over human rights and workers rights Indonesia-U.S. relations are excellent.

"Indonesia is included in what the U.S. Department of Commerce calls the big ten emerging markets towards which the U.S. will launch major commercial initiatives," he added.

He continued that Indonesia needs to launch a more intensive campaign to enlighten the American public, notably the Congress, of the mutual benefits of good bilateral ties.

Arifin, a former trade minister who assumed his post in Washington six months ago, acknowledged how inadequately informed American's are on Indonesia.

"I think the second informal APEC summit meeting here in November will be a good opportunity to show to the U.S. government the great benefits both sides will reap from excellent relations," Arifin said. (vin)

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