3 States to get most U.S. aid

Press, 21 February 1986, Page 6

3 States to get most U.S. aid

NZPA-AFP Washington

Two-thirds of American economic and military aid to Asian nations had been earmarked for three countries judged “threatened or vulnerable” — the Philippines, South Korea, and Thailand — the Secretary of State, Mr George Shultz, said yesterday.

They should get SUSSB7 million ($lO9l million) of SUS7S7 million ($l4OB million) requested for Asia in the Administration’s SUSI 6.2 billion ($30.1 billion) Foreign Aid Bill for the 1987 financial year.

Mr Shultz outlined the “serious economic and political problems” facing the Philippines but urged the Senate Budget Committee not to cut United States aid to Manila

despite judgments that the Presidential poll returning Ferdinand Marcos to power was fraudulent

He said South Korea continued to face the "greatest threat” to its security from the Communist North. Tension on the peninsula remained high and continued American presence and support were "crucial,” especially over the next three years. The United States has 50,000 troops stationed in South Korea. Mr Shultz said Seoul was spending heavily on defence but continued United States military aid was needed to meet key objectives in its forces improvement plan. The entire SUS 232 million ($431 million) aid request for South Korea is

for military aid. Mr Shultz said Thailand was devoting a lot of money to military modernisation and creating a “credible deterrent to Vietnamese aggression.” Nearly 80 per cent of the SUSI3S million ($251 million) request for Thailand was for military aid. That would help Thailand maintain development goals and a healthy economy while meeting increasing security needs, he said.

The United States’ commitment to Thailand was also part of Washington’s over-all support for the Association of South-East Asian Nations, to which Thailand, the Philippines, Singapore, Malaysia, Brunei, and Indonesia, belonged. “We have an enormous stake in the

independence, prosperity and integrity of A.5.E.A.N.,” said Mr Shultz. A.S.E.A.N. nations sat astride vital sealanes joining Asia with the Middle East and Europe and the United States had a critical interest in keeping them peaceful and open. Another important element in Washington’s support for A.S.E.A.N. was the effort to find a political solution in Kampuchea, said Mr Shultz. He reaffirmed United States backing for the non-Com-munlst Kampuchean resistance fighting Vietnamese occupation. He said the Khmer People’s National Liberation Force and the Sihanoukist National Army had about 9000 troops operating inside

Kampuchea. More were scheduled to enter. He said military resistance leaders were optimistic about their prospects despite a serious split within the K.P.N.L.E. leadership, which had pitted military leaders against a former Cambodian Prime Minister, Son Sann. He repeated the Administration’s commitment to providing SUSS million ($9.3 million) in nonlethal aid to the nonCommunist groups.

Mr Shultz said the United States, facing for the first time increased Soviet activity in the South Pacific, hoped to reach a final fisheries agreement this year with regional States, which would promote United Statesinterests in the area.