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<title>GOVERNMENT OF CANADA TO PROVIDE BILATERAL SUPPORT PACKAGE TO INDONESIA</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">March 31, 1998 No. 77 </font></p>
<p align="CENTER"><font face="Univers" size="+2"> GOVERNMENT OF CANADA TO PROVIDE BILATERAL </font></p>
<p align="CENTER"><font face="Univers" size="+2">SUPPORT PACKAGE TO INDONESIA</font></p>
<p><font face="Courier">The Government of Canada today announced it will provide $280 million as part of
a support package to Indonesia to address the hardships its people have suffered
as a result of the economic crisis affecting the country. The announcement was
made on the occasion of the visit to Indonesia by Secretary of State (Asia-Pacific) Raymond Chan and Secretary of State (International Financial
Institutions) Jim Peterson, who are in Jakarta to discuss humanitarian and
economic needs with President Soeharto and Indonesian ministers. They are
accompanied by a team of officials and experts.</font></p>
<p><font face="Courier">"Indonesia is confronting a food shortage caused by drought, increased prices,
distribution difficulties, and a limited ability to import essential foodstuffs,"
said Foreign Affairs Minister Lloyd Axworthy. "Canadian assistance should help to
address the human side of the economic crisis."</font></p>
<p><font face="Courier">"The main objectives of this initiative are to alleviate the suffering of the
Indonesian people, to support implementation of the International Monetary Fund
(IMF) program, and to address Canadian interests in Indonesia," said Mr. Chan.
"Together, we can work to assist our Asian partners in their efforts to overcome
the economic turmoil taking place in the region."</font></p>
<p><font face="Courier">The support package will include $250 million in agricultural export credit
guarantees managed by the Canadian Wheat Board (CWB). An additional $20 million
will be provided in export credits for essential imports support from EDC (Export
Development Corporation) under the Canada Account.</font></p>
<p><font face="Courier">"The Canadian contribution serves to bolster Indonesia's efforts to address the
crisis by reinforcing the multilateral initiative led by the IMF," said
International Trade Minister Sergio Marchi. "EDC will continue to consider
business opportunities in Indonesia using its normal commercial criteria."</font></p>
<p><font face="Courier">"This initiative follows Canada's efforts at the multilateral and bilateral
levels to help Indonesia deal with the current economic crisis," said Jim
Peterson. "The IMF, the World Bank, the Asian Development Bank, and bilateral
donors provided US$41.2 billion in assistance to Indonesia in response to the
financial crisis in November 1997."</font></p>
<p><font face="Courier">Diane Marleau, Minister for International Co-operation and Minister responsible
for la Francophonie, added that the Canadian International Development Agency
(CIDA) will respond with more than $9 million in food aid and humanitarian
assistance to requests from multilateral and local aid organizations in
Indonesia. CIDA will supplement its existing program, designed to help the
country in the areas of private sector and human resources development,
governance and human rights, and environment, with special technical assistance
related to the financial crisis.</font></p>
<p><font face="Courier">The Canadian support package is the result of an initiative involving several
government organizations, including the Department of Foreign Affairs and
International Trade, the Department of Finance, the Department of Agriculture and
Agri-Food, the CWB, EDC and CIDA.</font></p>
<p><font face="Courier">Canada contributed $1 million last December in bilateral food aid to assist the
Indonesian people in Irian Jaya suffering from drought. Earlier this month,
Canada provided an additional $50 000 for a food program in East Timor. The
Canadian government also indicated that it is prepared to work in partnership
with Indonesia and other affected countries to combat the forest fire problem in
the region.</font></p>
<p align="CENTER"><font face="Courier">- 30 - </font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">Hilary Humphrey</font></p>
<p><font face="Courier">Office of the Secretary of State (Asia-Pacific)</font></p>
<p><font face="Courier">(613) 995-1852</font></p>
<p><font face="Courier">Doug Secord</font></p>
<p><font face="Courier">Office of the Secretary of State (International Financial Institutions)</font></p>
<p><font face="Courier">(613) 992-6670</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
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