Soviet Success In Indonesia Talks

Press, Volume CIX, Issue 32114, 9 October 1969, Page 8

Soviet Success In Indonesia Talks

(N.Z P.A.-Reuter—Conright) DJAKARTA. A Soviet economic delegation flew home to {Moscow from Indonesia recently three weeks behind schedule after successfully taking the first tentative step to further xtend the Soviet Union’s growing influence in South-East Asia. Until the delegation arrived in August, Indonesia, under President Suharto, stood as a vast, potentially powerful nation in which the Russians exerted no influence. Now, informed foreign observers believe, all this has changed. “There is willingness on both sides to resume talks again later ... we have reached a mutual understanding,” the leader of the Indonesian delegation to the fiveweek long talks. Dr Ismail Thajib, told a press conference. “We have agreed to restore economic and technical co-operation." ' Hard Bargaining The five weeks of hard bargaining—originally scheduled to take two—was the first meeting of minds between Russians and Indonesians since the abortive 1965 Communist coup attempt The Indonesians wanted renewed Soviet aid. The Russians wanted to regain influence in non-aligned Indonesia and also to find a way to get Indonesia to agree to repay the s7l4m debt incurred by President Sukarno.

This was mainly for military equipment during confrontation with Malaysia. Most foreign observers, and the Indonesians themselves,

I saw the Indonesian side as holding all the aces, reasoning that Russia, known to want a collective security system in South-East Asia, could ill-afford to ignore this nation which stretches the length of South-East Asia. Indonesian Proposal

The Russians flew home carrying an Indonesian proposal for repaying the debts, which almost certainly puts any repayment of a large amount in the next four years out of the question. Dr Ismail said that to avoid discrimination the repayment would be closely linked to repayments to Western creditors. He said the Indonesian side had asked the Russians to understand “that we should have the least burden during the five-year plan (begun in April).” The proposals suggested smaller payments at the start, increasing later. The Soviet side also took home the good news that the Indonesians, although they have been leaning heavily on Western aid for the last few years, are just as interested in courting the East. Indeed, a few days before they arrived, President Suharto, in his state-of-the-nation address, gave them special mention, saying aid I was not being accepted with strings attached, and “the door to aid from the Eastern bloc is not closed.”

The Indonesian side, although it would not say so publicly, is confident that the Soviet Union will agree to complete the steel and fertiliser projects and the oceanographic institute left untouched since the coup attempt 60 p.c. Increase Wanted

A small beginning in repayments would undoubtedly open the way to increased aid from Eastern Europe. The

five-year plan is looking to a 60 per cent increase in aid figures by the fifth year. Dr Ismail said a SovietIndonesian committee would be set up in Djakarta to prepare for future talks. It is not known when or where they will be held, but observers believe the Soviet Union is unlikely to make any debt' repayment decision until after the Western creditors have met in Paris later this month.