From: hrcoord@igc.org (Human Rights Coordinator)
Newsgroups: soc.rights.human
Subject: GL: Linking of Human Rights
Date: 28 Jul 92 18:27:00 GMT
Nf-ID: #N:cdp:1476700292:000:3835
Nf-From: cdp.UUCP!hrcoord    Jul 28 11:27:00 1992


From: Human Rights Coordinator <hrcoord>
Subject: GL: Linking of Human Rights

/* Written  7:42 pm  Jul 28, 1992 by peg:greenleft in cdp:greenleft.news */
Urge linking of human rights, Indonesian aid

By Max Lane

Governments of 18 industrialised countries, including Australia, 
have agreed to provide Indonesia with further loans totalling 
US$4.8 billion. The biggest lenders are the World Bank and Japan, 
followed by the other big Western powers.

Representatives of the 18 met on July 17 in Paris met to conduct 
their annual vetting of the Indonesian economy. The group is now 
known as the Consultative Group on Indonesia (CGI) and is chaired 
by the World Bank.

Previously the lending governments met as the Inter-Governmental 
Group on Indonesia (IGGI), chaired by the Netherlands. However, 
Indonesia has refused to collaborate further with the IGGI while 
the Netherlands chaired the group because of the Netherlands' 
attempt to link aid and human rights.

The Netherlands suspended aid to Indonesia in the wake of the 
Dili Massacre on November 12.

To balance its budget, the Suharto government depends on huge 
inputs of foreign aid, mostly in the form of loans. Despite being 
a major exporter of oil and the world's biggest exporter of 
liquid natural gas as well as a major exporter of tropical 
timber, the government has now run up a debt of over US$100 
billion.

According to Indonesian government figures, approximately 50% of 
all government expenditure on development comes from foreign aid. 
``Revenue'' from loans is included on the income side of 
Indonesia's national budget, which means that it is nearly always 
``balanced''.

The US ambassador in Jakarta made very strongly critical 
statements of the Suharto regime prior to the CGI meeting. He was 
not, however, critical of the level of political repression or 
poverty but the extent of corruption and red tape that bedevils 
foreign investors. US investment has been dropping off over 
recent years.

Some of the European countries, led by Portugal, did express some 
concern over human rights violations in Indonesia and East Timor. 
But the CGI as a whole seemed to believe that such issues should 
not be linked to aid.

Human Rights organisations, including New York-based Asia Watch, 
TAPOL (the British Campaign for Human Rights in Indonesia), 
several of the Netherlands-based Indonesian pro-democracy groups 
and Aksi (Indonesia Solidarity Action) in Australia, have urged 
governments to make such a link. Asia Watch sent a memo to the 
CGI arguing for the linking of democratisation and development 
assistance.

Australian foreign minister Gareth Evans has made it clear 
several times that the Australian government will not link human 
rights and aid. When the US House of Representatives blocked US$2 
million of military aid to Indonesia, Evans condemned the 
Congress as being too punitive.

Australia provided $106 million in 1990-91 and an estimated $113 
million in 1991-92 in economic assistance, mostly to projects 
involving Australian companies. Australia also conducts a 
development cooperation program with the Indonesian military, 
including joint exercises, training and other exchanges.

Aksi groups in Sydney and Canberra have decided to launch a 
petition campaign demanding the Australian government link 
economic assistance to improvements in Indonesia.

In particular, Aksi is calling for the Australian government to 
raise: the release of all political prisoners; the repeal of laws 
restricting political and social organisations, especially the 
law enforcing a single ideology and banning new parties; the end 
of restrictions on trade unions; the end of violent repression of 
people calling for self-determination in West Papua, Aceh and 
East Timor; and the start of peace talks with the East Timorese.