JPRS 72231

14 November 19 78

TRANSLATIONS ON SOUTH AND EAST ASIA

No. 789

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JPRS 72231

14 November 1978

TRANSLATIONS ON SOUTH AND EAST ASIA

No. 789

CONTENTS PAGE

INTER-ASIAN AFFAIRS

Burma, Japan Exchange Notes on Grant Aid

(THE WORKING PEOPLE'S DAILY, 18 Oct 78) 1

Malaysia Gets Japanese Loan for Power Project

(BUSINESS TIMES, 2 Sep 78) 2

Briefs

Japanese Loan to Burma 3

BANGLADESH

Bangladesh, Romania Sign Barter Trade Protocol

(Dacca Domestic Service, 30 Oct 78) 4

BURMA

Sugar Cane Crop Expected to Top 2.1 Million Tons

(THE WORKING PEOPLE'S DAILY, 12 Oct 78) 5

CAMBODIA

INDIA

Congratulatory Messages Received on 18th Anniversary of KCP's

Founding

(Phnom Penh Domestic Service, 18, 19 Oct 78) 6

From Dominican Movement

From Italian Association, by Sarino Marinelis

Maoist Organ Prints Views of Swedish Society Reporter in

Cambodia

(Gunnar Bergstrom; GNISTAN, 29 Sep-5 Oct 78) 9

India, USSR Agree to Cooperate in Drug Production Projects

(ISI, 21 Oct 78) , 13

-a - [III - ASIA - 107]
CONTENTS (Continued) Page

'ISI1Gives Details of Indo-Soviet Agricultural Agreement

(ISI, 20 Oct 78) 14

PRC Cooperating With India in Agricultural Research

(AFP, 30 Oct 78) 16

Three New Public Sector Steel Plants To Be Set Up in India

(ISI, 28 Oct 78) 17

Naxalite Activity on the Rise in Punjab

(THE STATESMAN, 10 Oct 78) 18

Briefs

Indo-British Aircraft Talks 19

Power Project in Libya 19

Seychelles Air Service Agreement 19

Hungarian Shipping Agreement 19

Railway Communications With Pakistan 20

Rural Development Program 20

INDONESIA

Military Aid Agreements, Talks With Other Countries Being Carried

Out

(ANGKATAN BERSENJATA, 6 Jul 78) 21

Military Sea Transport Command Said in Need of More Ships

(ANGKATAN BERSENJATA, 1 Jul 78) 23

Seaborne Strategic Reserve Force Formed

(KOMPAS, 9 Aug 78) 25

Infantry Battalion Commissioned, Assigned to East Timor

(KOMPAS, 11 Aug 78) 27

New Approach to Transmigration Being Worked Out

(KOMPAS, 3 Aug 78) 28

Government Not Suspicious of Religious Community

(ANGKATAN BERSENJATA, 7 Jul 78) 30

Tanti Aidit Applies for Legal Assistance

(KOMPAS, 16 Aug 78) 31

Wife of Former PKI Leader To Go On Trial

(ANGKATAN BERSENJATA, 8 Jul 78) 32
CONTENTS (Continued) Page

272 Obstetricians Said to Handle 5 Million Births

(KOMPAS, 16 Aug 78) • 33

Polish Foreign Trade Minister Visits Jakarta

(Various sources, various dates) 34

Balance of Trade

Indonesian Indebtedness

Four Areas of Interest

Coal Team to Poland

ADB Loans to Indonesia Total $200 Million in 1978

(KOMPAS, 2 Aug 78) 38

Two Financial Aid Agreements Signed With West Germany

(KOMPAS, 16 Aug 78) 40

Food-Crop Production Up, Storehouses Full

(KOMPAS, 2 Aug 78) 41

March 1978 Figures on Oil, Natural Gas Production Given

(ANGKATAN BERSENJATA, 6 Jul 78) 43

Mining Minister Comments on Oil Prices, Exports, LNG Sales

(KOMPAS, 22 Aug 78) 44

East Timor's Dili Airport To Be Moved to Komoro

(ANGKATAN BERSENJATA, 10 Jul 78) 46

Pasmindo to Regulate Cargo Handling, Shipping Practices

(KOMPAS, 21 Aug 78) 47

Supply Shortage at South Kalimantan Rubber Factories

(KOMPAS, 29 Aug 78) 49

Cement Exports To Begin; Production Figures Noted

(KOMPAS, 5 Aug 78) 50

LAOS

Briefs

Factories Given to the State 52

Printing House Given to State 52

Meuang Hin Boun Post Office > 32

Vientiane Flood Control 52

- c -
CONTENTS (Continued) p

MALAYSIA

Stock Market Booming, New Records Set

(Susan Tham; BUSINESS TIMES, 2 Sep 78) 54

Major Breakthrough in Palm Oil Separation Process

(Mack Laing; BUSINESS TIMES, 7 Sep 78) 55

New Esso Platforms Will Boost Oil Production

(A. Kadir Jasin; BUSINESS TIMES, 1 Sep 78) 57

Fisheries Development Program Will Require Heavy Investment

(Gil Hamiku; BUSINESS TIMES, 2 Sep 78) 58

Cocoa May Rank as Malaysia's Third Crop

(BUSINESS TIMES, 2 Sep 78) 60

PAKISTAN

Pakistan Paper Concerned Over India's Purchase of Jaguar Aircraft

(Editorial, DAWN, 10 Oct 78) 61

PHILIPPINES

Briefs

Two Oil Discoveries 63

- d
INTER-ASIAN AFFAIRS

BURMA, JAPAN EXCHANGE NOTES ON GRANT AID

Rangoon THE WORKING PEOPLE'S DAILY in English 18 Oct 78 p 1

[Text]

RANGOON, 17 Oct— Dr Maung

Maung Aye, Deputy Minister,

Ministry of Education, and Mr

Kazuhide Komuro, Ambassador

Extraordinary and Plenipotentiary

of Japan, have, today exchanged

Notes concerning a Grant

Aid up to six hundred million

yen which will be provided in the fiscal year ending

March 31, 1979 by the Government of Japan to the Government of the 'Socialist Republic of

the Union of Burma, for the purchase of woven fabrics from Japan

and services for the purpose of

coattikuiiag ta. the execution of

the Project for the Free Distribution of Uniforms for Primary

School Children.

The notes were exchanged at a

ceremony held in the Office of the

Deputy Minister for Education.

The Deputy Minister for Foreign Affairs U Tin Ohn, Director-

. General of the Department of

Higher Education U San Tha

Aung, Director-General of the

Technical, Agricultural, and Vocational Edusation Department

U Khin Maung, Director-General of the Department of Basic

Education U Than U, Director

of the Department of Higher

Education U Thet Tun, Deputy

Director of the Foreign Economic

Relations Department U Aung Pe,

First Secretary (Information and

Culture) of the Japanese Embassy

Mr Hirayoshi Sakuma and First

Secretary (Commerce) Mr Yutaka

Yamada were present on the

occasion.—NAB

CSO: 4220
INTER-ASIAN AFFAIRS

MALAYSIA GETS JAPANESE LOAN FOR POWER PROJECT

Kuala Lumpur BUSINESS TIMES in English 2 Sep 78 p 1

[Text] MALAYSIAN Ambassador Lim Talk

Choon today signed here

a US$82 million project

loan agreement with

Japan's Overseas Economic Cooperation Fund

<OECF) authorities

within the Japanese Foreign Ministry.

• The 10 billion yen loan

Is to finance two specific

projects under the fourth

yen credit agreement

«igned on May 24 this

year.

'•; The two projects, both

inthe field of power, are:

three gas turbines for

three power different

Sower plants at Port

lickson, Klang and

Kuantan; and a power

station at Paslr Gudang

in Johore.

Signing the protocol,

Ambassador Lim remarked by these

projects the Japanese

were taking part in both

social and economic development of Malaysia.

The projects, he noted, would not only contribute to economic development but being in

the rural areas they

would also enhance social progress.

OECF-. president

Kaneo Iahihara signed

the documents for

Japan.

Three turbines under

the first project will cost

three billion yen and the

power plant seven billion

yen. The two project

loans, repayable in IS

years from 1985 whenthe

first annual repayment

falls due\ carry a four

per cent interest.

The turbines are for

immediate installation.

In fact, they have already been shipped to

the sites where tney will

be installed.

The protocol signed

today formally establishes the credit needed

to fund the projects.

CSO: 4220
INTER-ASIAN AFFAIRS

BRIEFS

JAPANESE LOAN TO BURMA--Tokyo 21 Oct KYODO--Japan will extend a yen 13.5

billion dollar 73 million loan to Burma to help finance its industrial

development projects, according to the government. The government said

notes on the loan were exchanged in Rangoon Friday. With the loan, Burma

will purchase machinery and parts for light and heavy vehicles and agricultural machinery projects and for the expansion of an oil refinery. The

untied [as received] loan will be provided through the overseas economic

cooperation fund. It is repayable in 30 years including a grace of 10

years. It brought the total sum of loans extended by Japan to Burma to

yen 108.7 billion. [Text] [Tokyo KY0D0 in English 21 Oct 78]

CSO: 4220
BANGLADESH

BANGLADESH, ROMANIA SIGN BARTER TRADE PROTOCOL

Dacca Domestic Service in English 1530 GMT 30 Oct 78 BK

[Text] Bangladesh and Romania have agreed to exchange goods worth $7.5 million each way during the current financial year, under the fifth barter

protocol signed in Dacca today.

The projected turnover of the current protocol represents an increase of

$1.8 million over that of the previous one. Under the new protocol,

Bangladesh will export to Romania raw jute, jute products,tanned and

semi-tanned leather, loose and packed tea, newsprint, writing and printing

paper, cottage industry products, timber, tobacco and drugs and medicine.

A list of Bangladesh imports include mineral oil, soda ash, fertilizers,

ball bearings, diesel engines, spare parts for ambulances, tools and

workshop equipment and trucks. The fifth barter protocol was signed by

the commerce secretary, Mr Matiur Rahman and the visiting Romanian deputy

foreign trade and international economic cooperation minister, [name

indistinct].

Earlier the Romanian deputy minister called on the commerce minister,

Mr Saifur Rahman. During the meeting Mr Saifur Rahman said since

President Ziaur Rahman's tour of Romania the two countries have come

still closer together, and the bilateral relations between them,

particularly in the economic and commercial fields, have started showing

further improvement.

Reciprocating the theme, the Romanian minister said his country is more

keen to promote economic and commercial relations with Bangladesh [words

indistinct].

CSO; 4220
BURMA

SUGAR CANE CROP EXPECTED TO TOP 2,1 MILLION TONS

Rangoon THE WORKING PEOPLE'S DAILY in English 12 Oct 78 p 1

[Text] Rangoon, 8 Oct—Sugar cane cultivation in the varous states and

divisions has been extended from 137,970 acres in 1977-1978 to 146,284

acres this season.

As a result of the extended cultivation, the sugar cane output this year

is expected to exceed that of the previous year by 400,000 tons bringing

the total output to 2.1 million tons.

Farmers in various parts of the country put 137,970 acres under the cane in

1977-1978.

This year sugar cane cultivators extended the acreage to 146,284 and as a

result of the concerted efforts and favourable weather conditions, it is

estimated that the sugar cane output this year will be more than 2.1 million

tons.

Most of the sugar cane is grown in Mandalay Division and Mon and Karen

states.—(217)

CSO: 4220
CAMBODIA

CONGRATULATORY MESSAGES RECEIVED ON 18TH ANNIVERSARY OF KCP'S FOUNDING

From Dominican Movement

Phnom Penh Domestic Service in Cambodian 2300 GMT 18 Oct 78 BK

[Text] The Political Committee of the National Leading Committee of the

Red Line and 14th of June Revolutionary Movement of the Dominican Republic

has sent a congratulatory message to the KCP Central Committee.

"We extend to you our most ardent congratulations on the occasion of the 18th

anniversary of the founding of the KCP. The birth of the KCP on 30 September 1960 constitutes a great victory of the working class and people of

Kampuchea.

"Since its founding the KCP has adopted a correct policy line, strengthened

bonds with the masses, mobilized into a unified front all forces that could

be mobilized, and waged a people's war from start to finish by blending

the universal truth of Marxism-Leninism and Mao Tse-tung Thought with the

concrete conditions of the Kampuchean revolution.

"The great victory of the liberation war against the U.S. imperialist war

of aggression has allowed the Kampuchean people to enthusiastically pursue

socialist revolution and socialist construction under the leadership of

their glorious vanguard:—namely, the KCP, with esteemed and beloved Comrade

Pol Pot as the great leader."

The congratulatory message goes on to say: "The victories achieved by the

Kampuchean people in this new period clearly show that the KCP embodies a

correct line and policy. All of these victories of the Kampuchean people

have enhanced the revolutionary struggle of the proletariat and oppressed

people in the world.

"We resolutely stand on the side of the Kampuchean communists and Kampuchean

people in their just struggle to safeguard independence, sovereignty and
•>*

territorial integrity and we vehemently condemn the crimes of aggression and

subversion that Vietnam has committed and is continuing to commit against

Democratic Kampuchea at the instigation of the Soviet social imperialists."

The message stresses: "We are confident that in our common struggle against

the hegemonism of the two superpowers and their preparations for a war of

aggression the bonds of unity and friendship between our two parties and

peoples will strengthen and develop on the firm basis of Marxism-Leninism

Mao Tse-tung Thought and proletarian internationalism." '

The congratulatory message from the Dominican comrades concludes as follows:

"Long live the 18th anniversary of the KCP! Long live esteemed and beloved

Comrade Pol Pot! Long live the friendship and unity between the Kampuchean

and Dominican communists and peoples!

"Please accept our communist salutations.

[Signed] "The Political Committee of the National Leading Committee of the

Red Line and 14th of June Revolutionary Movement of the Dominican Republic."

From Italian Association

Phnom Penh Domestic Service in Cambodian 2300 GMT 19 Oct 78 BK

[27 September greetings message from (Sarino Marinelis), secretary of the

Italy-Democratic Kampuchea Friendship Association, to Pol Pot on the 18th

anniversary of the founding of the KCP]

[Text] In the name of the Italy-Democratic Kampuchea Friendship Association, I would like to extend to you and to the KCP Central Committee best

wishes on the occasion of the 18th anniversary of the founding of the KCP.

The KCP was a decisive force in the victory of the national liberation struggle and is playing the same role in Kampuchea's efforts to successfully

defend and preserve national independence against the aggression of the

Soviet superpower and Vietnam, which nurture expansionist, hegemonist ambitions on the Indochinese Peninsula. The KCP is also a decisive force for

building the country, which has suffered from the abominable.and gross acts

perpetrated by Vietnam. In this connection, the KCP has basically achieved

the goal of increasing production and improving the people's livelihood.

It is now preparing conditions for greater victories in this regard.

The struggle of the Kampuchean people under the leadership of the KCP enjoys

the support and sympathy of the Italian people, while the slanderous propaganda spread in Italy in service of hegemonism has been totally ineffective.
Our association's desire to strengthen the bond of friendship and to strengthen and expand understanding between our two countries, which cherish peace

and independence, has won increasing support from workers, peasants, youths,

intellectuals and political, democratic and progressive figures.

The Italy-Democratic Kampuchea Friendship Association would once again like

to extend warmest congratulations and best wishes to the KCP.

Long live Italy-Democratic Kampuchea Friendship!

Long live the struggle of the Kampuchean people and the KCP against the

Soviet-supported and Soviet-supervised Vietnamese aggressive and expansionist acts!

Rome, 27 September 1978

[Signed] (Sarino Marinelis), secretary of the Italy-Democratic Kampuchea

Friendship Association.

CSO: 4212
CAMBODIA

MAOIST ORGAN PRINTS VIEWS OF SWEDISH SOCIETY REPORTER IN CAMBODIA

Stockholm GNISTAN in Swedish 29 Sep-5 Oct ?8 p 9

/Article by Gunnar Bergstrom: "First Swedish Journalists in Liberated Cambodia; Cambodia Starts From the Beginning^7

^t*€.^ the market s<luare in Kompong Cham the farmers point to the bombedout buildings.

"Amerik," they say. Then they make a gesture to show how they drove out the

Ai!1637XCcins •

We are sitting in the corn field and the farmers are speaking of rebuilding

their land and I m trying to explain where Sweden is situated. It is peaceful.

At the same time, far away in the United States, Senator George McGovern advocates an invasion of the country. Radio Hanoi calls on the soldiers of Cambodia to turn their arms against their leaders. And in Moscow there are

strong attacks on Cambodia in the radio broadcasts.

Moscow and Washington are furious because the Cambodians are building up their

oHh?^ °

Ut f

+°

r

f*" lntef

erence

- Hanoi tries to depict CambodJS as one

of the truly great dangers of the world because Cambodia is opposed to Viet*

IMochinl relationship with the countries in what was formerly called

But here in the Cambodia in which we are travelling there are no sims of the

massacres, the oppression and suffering which newspapers all over the world

are telling of. "

U11U

In Cambodia one sees instead the enthusiasm which is typical of a young revoiS T^7 t

a

t

e

lufOT eXaJnplG the y°

Uth ^S^es, the will to try new ttinjs! the talk about the new human being. "" "«*» i

Many Children

tions ^nd^t S^T1 ln CaJnbodia- I* is one of the world's youngest nation in W years! C

°

me ^^ ^ ^±S t0 nea*ly double *S popula-
But most of the schools we see in the countryside don't even have a building.

The lessons must be held under the houses on stilts or outside in the open

air. Ther are schoolbooks, however, and everyone goes to school at least 2

hours a day. The children are the future and the children of the farmers are

now going to learn to read and write. They are going to be able to count and

to know their country's geography.

It is a unique revolution which has taken place in Cambodia.. People have

started from the beginning. There are two reasons for this:

a) It was necessary to start all over after the terror bombings by the United

States. I had never imagined such destruction as the one we saw in Cambodia.

Along all the roads there were —or rather had been — villages. Which were

now totally obliterated.

b) A society is being constructed from scratch for ideological reasons. The

communist party of Cambodia has produced an analysis, which says two things:

1. The population of the cities consists largely of exploiters. The function

of the cities is the reason they must be evacuated and recreated from the

foundation. This is one of the political reasons why all of Phnom Penh' s

street signs have been painted over.

2. The intellectuals of the old society can serve the new society only after

reschooling in the cooperatives in the country. The new intelligentsia and

the new working class must chiefly come from the class of farmers.

Repopulation of the Cities

There is a slow repopulation of the cities. In Phnom Penh it is difficult to

estimate how rapidly it is going because the city is so large. But many areas

seemed fully inhabited. Other areas have completely deteriorated. In Kompong

Cham, which previously housed 20,000 inhabitants, 5*000 now live.

It was considerably neater and more orderly there. This is due to the fact

that Kompong Cham lies in an area with many industries, among others rubber

industry.

I ask Sok Rim, an offical at Cambodia's Foreign Ministry, about the special

characteristics of Cambodia's revolution, the evacuation of the cities, the

emphasis on self-sufficiency, the lack of money. Was this a definite plan

even during the war of liberation or was it a result of the enormous destruction in the war?

"We shaped the revolution step by step," Sok Rim replies.

"Step by step" is a very common expression. Each measure is tested In practice, discussed and perhaps discarded.

10
The issue of money was frequently discussed in the cooperatives. Is it really

possible to abolish money? What happens when trade becomes more developed?

The result of these discussions in the countryside was that they continue

without money. But the future will show whether it has to be brought back.

Today a "system of collective goods distribution" exists. Trucks bring goods

to the cooperatives and fetch the surplus of the cooperatives of rice and

other agricultural products.

Soldiers at the Front

The economy of Cambodia is still largely organized according to military principles. The war with Vietnam has scarcely speeded up a change in this. On

the contrary, explained Sok Rim at the Foreign Ministry:

"The war with Vietnam is now costing us as much as the war against the U.S.

imperialists."

But I saw few soldiers — four, five during a 100 Swedish/ mile trip. The

soldiers are needed at the front against Vietnam.

I visited the Takeo and Kampot provinces which were hit by fighting at the end

of December 1977 and January 1978. The members of the Ang Khnol cooperative

told of cruelties carried out by Vietnamese soldiers, cruelties of the same

kind that Cambodia is usually accused of.

Friendship Proposal in 1975

The fighting has gone on for a long time. But as early as June 1975 Cambodia's leadership proposed a non-aggression pact and a friendship agreement to

Vietnam. This was revealed by Prime Minister Pol Pot when we met him in Phnom

Penh. Vietnam refused but the proposal from Cambodia remains.

Right now fighting is taking place in Svay Rieng (the so-called Parrot's Beak)

and in northeastern Rattanakiri, that is to say in the far northeast.

But I don't see much of the war inside Cambodia. The country is seething with

activity. The rice fields are green. In September-October they turn yellow

and the rice will be ripe for harvesting. Now people are working on planting

and fertilizing.

'We Moved About Freely'

Three years after the liberation of Cambodia and three years after having

celebrated the victory of the people in Cambodia with a demonstration in

Stockholm our plane landed at Pochentong airport outsidePhnbto Penh. In August 1978 we, a delegation of four persons from the Sweden-Cambodia Friendship

Society, travelled around Cambodia as the first Swedish delegation.

11
We travelled north, north of the Tonle Sap lake to the great monuments at

Angkor. We travelled south to the coast and along the coast to the border of

Vietnam.

We saw green rice fields and irrigation canals glistening in the sun between

the rain showers. It was the rainy season and an almost constant drizzle.

We were able to stop our car wherever we wished in order to photograph and

film what we wanted. We chose our interview victims by ourselves. Even in

the cities we stayed in we had complete freedom of movement.

In the sand beneath a house on stilts under which children of the ages of 10

or 12 had gathered I tried to draw a map and tell them that I was from Sweden.

It didn't succeed too well, but the children understood that I had flown for

a long time to get to their country.

11949

CSO: 3109

12
INDIA

INDIA, USSR AGREE TO COOPERATE IN DRUG PRODUCTION PROJECTS

Delhi ISI in English 1444 GMT 21 Oct 78 BK

[Text] India and the Soviet Union have agreed to collaborate in setting up

joint ventures in third countries for the production of drugs.

Understanding to this effect was reached during discussions with a team of

experts representing the Soviet Ministry of Medical Industry who signed a

memorandum of discussions on 20 October setting out points of economic,

trade, scientific and technical cooperation between India and the USSR in

the field of pharmaceuticals.

The memorandum was signed by M. Varadarajan, joint secretary, Department

of Chemicals and Fertilisers, and A. J. Vinogradov, chief of

Medzagranpostavka.

The two sides also agreed to explore the possibility of the production of

formulations in India based on bulk drugs from the USSR for reexport to

third countries.

During their 2-week visit to India the Soviet delegation visited the

Rishikesh and Hyderabad plants of Indian Drugs and Pharmaceuticals Limited

and some drug plants in Baroda.

The visit was in accordance with decisions of the fourth session of the

Indo-Soviet Joint Commission for further expansion of cooperation between

two countries in industrial and other projects.

CSO: 4220

13
INDIA

•ISI1GIVES DETAILS OF INDO-SOVIET AGRICULTURAL AGREEMENT

Delhi ISI in English 0834 GMT 20 Oct 78 BK

[Text] A protocol for a long-term programme of cooperation between India

and the USSR in the field of agriculture and animal husbandry was signed in

New Delhi on 19 October. Doctor B. A. Runov, USSR deputy minister for

agriculture, signed the protocol on behalf of the government of the USSR

and G.V.K. Rao, secretary, agriculture and irrigation, signed on behalf of

India.

The protocol is in pursuance to the first meeting of the working group held

in Moscow in July 1978 in terms of the protocol of the fourth meeting of the

Intergovernmental Indo-Soviet Joint Commission on economic, scientific and

technical cooperation. A 12-member USSR delegation headed by Dr Runov

came to India on 14 October to work out the details.

It was agreed that in the field of animal husbandry the USSR would supply

pure bred Merino sheep and Pashmina goats. The two sides would exchange

specialists, scientific information and their experience in the field of

genetics work. The USSR would also provide training of personnel in

artificial insemination. In Karakul sheep breeding the USSR would

cooperate by exchanging specialists and the results of research.

A long-term programme will be worked out to develop genetics of cattle and

buffaloes by providing the use of local breeds from the USSR and India.

In the field of agricultural crops it was agreed to exchange germ plasm of

both cultivated and wild plants of mutual interest with the main objective

of utilising them in breeding programmes to improve the productivity of

crops. High-yielding varieties would be exchanged for tests under the

different agro-climatic conditions of the two countries for identifying

suitable varieties with higher productivity and resistance to pests and

diseases. The two sides would carry out joint projects on plant breeding,

seed production and the agronomy of wheat, rice, sorghum, cotton, sunflower,

sugar beets, gram peas, triticale and other crops of mutual interest.

14
Techniques for the control of pests and diseases of cultivated plants and

stored grains would also be developed. It was also agreed to exchange

scientific information, students and experts and arrange joint symposia.

It was agreed that possibilities of the purchase manufacture under licence

of a suitable single-engined helicopter for agricultural purposes would

also be examined.

Indian specialists would study Soviet agro-aviation techniques for seeding

fertilisation and herbicide operations. They would also study Soviet

technology for production of cereals, oilseeds, sugar beets, livestock

production, mechanisation of agriculture, reclamation and exploitation of

desert and saline alkaline soil. The two sides would consider the possibilities of an exchange of groups of farmers.

lu&

T

P

I°cfibi1

lity °f India suPP1

y

lnS vegetable seeds to the Soviet Union and

the USSR making available spare parts, [paragraph as received]

Soviet-gifted machinery to Suratgarh farm will also be considered.

CSO; 4220

15
INDIA

PRC COOPERATING WITH INDIA IN AGRICULTURAL RESEARCH

Hong Kong AFP in English 2005 GMT 30 Oct 78 OW

[Text] New Delhi, 30 Oct (AFP)—China today showed interest in cooperating

with India in agricultural research. A visiting Chinese agricultural

delegation had discussions here with Indian agricultural scientists on

subjects, particularly concerning breeding of high-yielding varieties of

crop seeds. The delegation concluded a 6-week tour of India today.

During the discussions, Dr Li Chi-chen, leader of the delegation, expressed

the hope that exchange of germ plasm and technical know-how would benefit

both sides. Mr Li, who is also head of the division of the Institute of

Cereal Crops, said that they appreciated the work done by Indian breeders.

He noted that the Indians had produced many high-yielding varieties

resistant to pests and diseases and with improved grain quality.

Dr M. S. Swaminathan, director general of the Indian Council of Agricultural

Research, told the visitors that India would be happy to provide any

material to the Chinese for their breeding programme. The visiting

delegation had already given some seeds to India.

CSO: 4220

16
INDIA

THREE NEW PUBLIC SECTOR STEEL PLANTS TO BE SET UP IN INDIA

Delhi ISI in English 1500 GMT 28 Oct 78 BK

[Text] Three new public sector steel plants are to be set up at

Visakhapatnam, Mangalore and Paradeep. This is part of a shore-based

strategy to create additional production capacity in steel. This was

announced by union minister for steel and mines Biju Patnaik at the

parliamentary consultative committee of his ministry in New Delhi on

the evenXng of 27 October. Finalisation of arrangements for the Sovietaided Vishakhapatnam plant was discussed with the Soviet Government

during Patnaik's recent visit to the USSR. This plant will have an

initial capacity of 1 million tonnes.

The committee was informed that setting up of the Mangalore and Paradeep

plants had recently been discussed with West German and Romanian authorities. _ Credit arrangements for these two plants are being worked out.

The minister said that all three plants will reach their operational stage

in about 4 years time. Emphasis will be on speedy implementation of new

steel projects to avoid delay.

Patnaik also briefed members about his recent tours to Moscow, Bucharest

Budapest and Bonn. He said possibilities of joint ventures in third

countries on the basis of an exchange of technology and engineering knowhow figured in their talks. Patnaik said that issue of technological

upgradation at Bhilai and Bokaro was taken up with the Soviet Union.

l.LlT-etTmM1"

68 h3d COnsecIUGntl

y ag^d to introduce technological

innovation at Bhilai and Bokaro. This will raise output of each of these

plants by about 1.5 million tonnes.

CSO: 4220

17
NAXALITE ACTIVITY ON THE RISE IN PUNJAB

Calcutta THE STATESMAN in English 10 Oct 78 p 12

[Text]

INDIA

CHANDIGARH, Oct. 9. — The

Naxalites in Punjab^ are exploring

fresh grounds in a bid to expand

'their activity. They are not. only

increasing their activities in old

pockets but are entering new

areas too.

The Naxalites'in the State had

received a setback in the pre-Emergency period- There had been a

large number of what are known

as "encounters" with the police resulting in death or arrest of several activists. During the Emergency, they had been lying low.

According to reliable information available with the State authorities and from sources close to

the Naxalites themselves, the Naxalite activity has received a boost

in the post-Emergency period. A

whole lot of Nau.iawan Sabhas have

come up in the rural areas, membership of the Punjab students

union units has registered an increase and the journals published

by the Naxalites are adding to

their circulation.

An important development is a

slow but gradual attempt by them

to get. into industrial labour pockets which have more or less been

the exclusive preserve of CPI and

CPIdVTi sponsored unions. Their

presence has already been evident

in Ludhiana, an Important industrial town and may soon be felt

In Jullundur and some smaller

industrial centres.

All this, while a section of the

;Naxalites, belonging to the S. N.

Singh groun had been negotiating

with the State Government and

had made much headway in reaching an understanding. Though this

group could not hold some of the

major demonstrations planned by

it. its leadership received a lot of

attention after it set up a non-official commission headed by Mr Justice V. M. Tarkunde to inquire into

killings by Naxalites in the past.

Incidentally, nothing much has

come out as yet of the inquiry.

•fhis group claimed that it was

becoming more of a mass-based

public organization and even held

a series of Press conferences in

the past to explain their views on

various issues and their strategy.

P.ut a part of the group's membership and activities remained a

closely guarded secret. Apparently,

they were reluctant to1 show all

their cards. This group is fairly

strong in some areas of Doaba

like Nawanshaher and Ropar district.

The other important section of

"Communist revolutionaries" h.

Punjab is that of Nagi Reddy

group which preferred to keep

away from the limelight and concentrated on consolidation. They

are a force in the Malwa belt of

the State, including the university

towns of Patiala and Ludhiana.

They perhaps have the largest circulated journal among those

brought out by various groups.

The presence of this group was

felt during the agitation by students in the Punjabi University at

Pa.tiala and the Agricultural Engineering College at Ludhiana.

Some of its Naujawan Sabhas were

active in flood relief work in areas

like the Sidhwan belt. Of late, a

section of this group seems to' be

interested in the projection of

their views and nart of their activities. If. is realized by them that

the S. N. Singh grouo had cornered much of the publicity.

The third group, the one belonging to supporters of Mr Charu Maliumdar. is confined more or less

to' the Sangrur district. This group

also has its journal.

It is more than obvious that

most of the Naxalite elements

want to project themselves as organizations interested in democratic mass action. The police In the

State are keeping a close watch on

their activities. It is still to be

seen if signs of a trade union activity among some policemen can

be traced towards various groups,.

In any case, the Naxalite sources

do not think that the present time

is^ opportune for any violent activity and there seems to be a voluntary truce.

The State Government, in the

first few months after coming into

power, had taken a lot of interest,

in the problem and had been In

touch with some of the Naxalite

leaders and had offered them some

concessions too in the hope that

they would draw them away from

the "creed of violence". During

the past few months, however, the

State Government had been too

busy with the Nirankari Drcbl°m

and the Akali factionalism. The

truce in the Akali faction fight,

even if temporary, may provide

time to the State Government to

study the Naxalite phenomenon

and decide on a future line to be

adopted by it.

CSO: 4220

18
INDIA

BRIEFS

INDO-BRITISH AIRCRAFT TALKS—Indo-British talks on the purchase and production of the Jaguar aircraft in India have been successfully concluded. The

terms were finalized in New Delhi today after over a week's discussions

between the officials of the Defense Ministry and a team from British

Aerospace, the manufacture of the Jaguar. The government had recently

decided to replace the aging Canberras and Hunters of the Indian Air Force

with Jaguars. British Aerospace will now manufacture the first few

aircraft to be acquired by outright purchase. Hindustan Aeronautics and

the Indian Air Force will simultaneously train pilots and crew and create

facilities for the license manufacture of the Jaguar in India. [Text]

[Delhi Domestic Service in English 1530 GMT 21 Oct 78 BK]

POWER PROJECT IN LIBYA—The public sector Bharat Heavy Electricals [BHEL],

Ranipur, has undertaken a 1.05 billion rupee turnkey thermal power project

in Libya. Under the scheme BHEL engineers are to construct the thermal

plant in Libya and impart training to Libyan engineers. After completion,

Indian engineers will do trial production for 4 years before handing over'

the project to the Libyan Government. Giving this information to newsmen,

a BHEL spokesman said in Dhradun that a team of Indian engineers is already

in Libya. [Text] [Delhi Domestic Service in English 0240 GMT 30 Oct 78 BK]

SEYCHELLES AIR SERVICE AGREEMENT—India and the Seychelles have signed an

agreement relating to air services between the two countries. The agreement provides that both Air India and Seychelles will be entitled to

operate a maximum of two services a week on specified routes. At present

Air India is operating one service to Seychelles on the Bombay-SeychellesMauritius route. [Delhi Domestic Service in English 1230 GMT 30 Oct 78 BK]

HUNGARIAN SHIPPING AGREEMENT—An Indo-Hungarian shipping agreement

facilitating easy transport of goods by sea to ports of either countries

was initialled in New Delhi on 18 October. This first ever shipping

agreement will become effective after ratification by the two governments

and signing on the ministerial level. S. S. Gill, joint secretary,

Ministry of Shipping and Transport, initialled the agreement on behalf of

19
the government of India, while Doctor F. Schuszter, general director,

Ministry of Transport, and chairman of Hungarian Shipping Corporation signed

on his government's behalf. [Delhi ISI in English 0902 GMT 20 Oct 78 BK]

RAILWAY COMMUNICATIONS WITH PAKISTAN—Railway officials of India and

Pakistan have begun a 3-day meeting in Delhi to sort out matters

connected with the movement of railway traffic between the two countries.

Such meetings are envisaged in the agreement between the two countries on

the resumption of rail traffic. [Delhi Domestic Service in English

0240 GMT 19 Oct 78 BK]

RURAL DEVELOPMENT PROGRAM—The Planning Commission has allocated an all-time

record outlay of 300 billion rupees for rural development during the Sixth

Plan Period. This was stated by Mr (Rajkrishna), member of the Planning

Commission, at a national seminar in Ludhiana. [Delhi Domestic Service

in English 0240 GMT 19 Oct 78 BK]

CSO: 4220

20
INDONESIA

MILITARY AID AGREEMENTS, TALKS WITH OTHER COUNTRIES BEING CARRIED OUT

Jakarta ANGKATAN BERSENJATA in Indonesian 6 Jul 78 pp 1, 8

[Article: "Contracts to Purchase Weapon and Ammunition Factories, F-5E and

T-4 Sky Hawk Aircraft from the United States"]

[Text] The minister of Defense and Security and commander of the armed forces,

General M. Jusuf, hopes that before 17 August 1978 Indonesia will have signed

contracts for the purchase of weapon and ammunition factories, F-5E aircraft, and two squadrons of T-4 Sky Hawk aircraft with the United States.

He said that efforts toward this end are being finalized and that, basically,

everything has been completed. However since we have to do things in an

orderly manner, and especially since the matter is being handled on a government-to-government basis, then it will take some time to complete the arrangements. The Minister made these remarks during a conversation with newsmen

on the return flight from an inspection trip of Military Region Command III

late Wednesday afternoon.

Regarding the selection of the F-5E by Indonesia, the minister said it was

chosen because its technology and capability are suitable for our present

national defense needs, and not because we want to follow other ASEAN countries which are already in possession of the aircraft.

Air from France, England and Australia

In connection with the phased renovation of ABRI [armed forces of the Republic

of Indonesia] equipment, the four-star general saw that we are exploring the

possibility of obtaining financial assistance from the French government for

the purchase of modern military equipment from that country. At present we

are in the process of selecting and discussing what we need to equip ABRI.

We will send a team to France to work out the details and determine what

equipment and armaments will be obtained. Of course all this is being done

in accordance with our principal needs and based on main priority considerations for our national defense.

21
In addition to improving the arsenal of the Indonesian air force, the French

military assistance will also be used to equip the Indonesian army and the

other services. The minister also confirmed that during his recent visit

to Indonesia, French General Guy Mery offered us the Mirage-5 aircraft. All

of these things will be discussed by the ABRI mission which will be despatched

there soon. In addition, we will not preclude the possibility of acquiring

spare parts for our existing stock of French weapons. In this connection the

minister said that the rehabilitation program for the army's French-built

AMX-13 tanks was no real problem.

The minister said we are also cooperating with Australia on matters that

concern the navy and air force. These matters are being discussed so that

we can meet our most pressing national defense needs in stages.

We need many things, the Minister said, and we must emphasize the need to

set priorities. We must also take into account the quality of the technical

personnel in ABRI and the police force. He confirmed that it was possible

that the weapons will be accommodated to the physical condition of Indonesians.

He also said that we have discussed with the British government the possibility

of equipping ABRI with British arms. The air force chief of staff, Marshal

Ashadi Tjahjadi, will leave for England in September 1978 to discuss the matter further.

When the minister was asked about the ability of ABRI personnel to use all

these new weapons, he declared that he was convinced that ABRI is ready.

"Indonesians are capable people," he said.

9316

CSO: 4213

22
INDONESIA

MILITARY SEA TRANSPORT COMMAND SAID IN NEED OF MORE SHIPS

Jakarta ANGKATAN BERSENJATA in Indonesian 1 Jul 78 p 2

[Article: "KOLINLAMIL Has Only Half the Number of Ships It Needs"]

[Excerpts] The commander of KOLINLAMIL, Military Sea Transport Command Rear

Admiral R. Suparno, acknowledges that the size of the fleet under his command

is inadequate for the number of tasks to be accomplished. For that reason,

he plans to propose that the number of ships, including "personnel carriers"

especially designed to transport military personnel, be increased.

In a conversation at his residence in Cawang, Jakarta, Thursday evening, the

KOLINLAMIL Commander estimated that his command needs twice as many ships

as it presently has.

To meet its needs KOLINLAMIL must use ships chartered by the Department of

Defense and Security. Suparno said KOLINLAMIL is using two vessels from

Admiral Line and several others from PELNI (Indonesian National Shipping

Company). This is being done to make up the shortage of ships that has been

produced by the use of a large number of ships for other military operations.

KOLINLAMIL is a major command of the Indonesian Navy which maintains noncombatant ships, such as LSTs, LCUs and coasters. It transports military personnel for amphibious operations and provides logistical support. According to

Suparno, to be effective one-third of the total number of ships should be

used for training, one-third for operations and the rest scheduled for repairs.

However, this has not been the case.

KOLINLAMIL is to receive a tanker, the former Komodo V, which was purchased

from Singapore in 1977. The vessel, renamed KRI (Republic of Indonesia Ship)

Balikpapan, will be commissioned by the KOLINLAMIL commander acting for the

naval chief of staff this coming Saturday, the command's seventeenth anniversary. KRI Balikpapan will be the command's only tanker.

23
In the near future an LCU, KRI Kupang, will be launched. The 200-ton vessel

will be the first KOLINLAMIL ship built by the Surabaya Navy Shipyard.

On the subject of civic action by KOLINLAMIL, Rear Admiral Suparno said

that there has been less activity this year than last year. This has been

due to the large number of KOLINLAMIL ships used for the East Timor operations.

However, KOLINLAMIL has been engaged in equally important missions, such as

helping victims of natural disasters and providing assistance to the governor

of Maluku in establishing new settlements in the Maluku islands. The ships

carry construction materials from Jakarta for the settlement project in

Maluku.

9316

CSO: 4213

24
INDONESIA

SEABORNE STRATEGIC RESERVE FORCE FORMED

Jakarta KOMPAS in Indonesian 9 Aug 78 pp 1, 12

[Text] Deputy armed forces commander, Admiral Sudono announced the formation of "Strategic Reserve Force II," consisting of several warships, LSTs,

and a naval Marine landing force yesterday at the pier at the Indonesian

Army-Navy base at Surabaya.

The formation of this seaborne force, capable of amphibious operations, completes the Department of Defense and Security's strategic reserve forces.

Last month, Strategic Reserve Force I was formed; it is airborne because

it comprises troops from the Army Strategic Command, the Strike Troop Command, transport aircraft, OV-10 "Bronco" fighters, and a number of helicopters

The airborne troops of the Army Strategic Command designated for the Strategic Reserve Force are the 330th and 501st battalions, while the Strike

Troop Command represents troops from a joint Army-Air Force Air Combat Command.

"It is a historical fact that brilliant victories in wartime can be decided

by reserves, in regard to preparation and speed of mobilization," said

Admiral Sudono, as he officially announced the formation of Strategic Reserve Force II yesterday morning.

Just like Strategic Reserve Force I, Strategic Reserve Force II will be on

constant readiness to assist Defense Territorial Commands I-IV in pressing

situations.

"Now we have a force which can be definitely ready in 6 hours, if necessary,

to go to target areas in-country. The same is true for the seaborne force

formed today," noted the deputy armed forces commander. We have a choice in

dispatching troops. They can be airdropped or landed amphibiously, he added.

Strategic Reserve Force II includes tenders, destroyer escorts, LSTs and

tankers. Armored amphibious vehicles to be used by landing troops consist

of PT-70 tanks and BTR-50s.

25
Meanwhile, Major General Seno Hartono, assistant for operations of the Department of Defense and Security answered a Kompas query by stating that the

capabilities of the components of Strategic Reserve Forces I and II would be

continually evaluated. Besides this, their capability would be improved

through the acquisition of suitable means to transport them.

Following the conclusion of the ceremony, Admiral Sudomo indicated to the

press that, in the near future, several warships would be sent from Surabaya

to western waters, such as the area around Risu. He noted that at least

two destroyers and four patrol craft would be assigned to clear the area

of smugglers.

According to the deputy armed forces commander, the dispatch of these vessels to carry out antismuggling operations is a follow-up to a previous visit

by the Minister of Defense and Security to that area.

Discussing smuggling, the admiral remarked that the great majority of smuggling activity takes place on land. "Only 20 percent occurs on the sea and

the remainder is on land," he noted. Thus, if smugglers are cleared from the

seas, they are not entirely wiped out, he said. Because of this, apparatus

on land must lend support, he continued.

The ceremony was attended by Navy Chief of Staff Admiral Waloejo Soegito,

Army Chief of Staff General Widodo, and Air Force Chief of Staff Marshal

Ashadi Tjahjadi.

9197

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26
INDONESIA

INFANTRY BATTALION COMMISSIONED, ASSIGNED TO EAST TIMOR

Jakarta KOMPAS in Indonesian 11 Aug 78 p 7

[Text] General Widodo, Chief of Staff of the Indonesian Army officially

commissioned the 745th Infanty Battalion in a military ceremony at Puputan

Badung Field, Denpasar. The majority of the battalion's strength consists

of youths from East Timor. They have been training in a parent regiment in

Military Region XVl/Udayana since April 1978.

The 745th Infantry Battalion, commanded by Infantry Major Teho Syafei, will

leave immediately for East Timor, where it will become a subordinate unit

of the East Timor Area Command, just like the 744th battalion, assigned

there earlier. The battalion's personnel, who average 20 years of age,

have volunteered their services to the country to restore order and security

in their home area.

The army chief of staff took this opportunity to stress that the government

had opened the gates wide to East Timorese who were still "lost" to return

to their villages and take part in their development. It is hoped that

the 745th battalion will be able to persuade and educate their companions

who are still lost to return to the fatherland. "It is hoped that the skills

and knowledge of the battalion will earn it the highest respect, equal to

that of other units in the areas," said Widodo.

9197

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27
INDONESIA

NEW APPROACH TO TRANSMIGRATION BEING WORKED OUT

Jakarta KOMPAS in Indonesian 3 Aug 78 p 2

[Text] Thus far, the transmigration program has been beset with difficulties,

both in design and execution.

Transmigration in 1977/78 was only about 66 percent of the planned target;

that is, just 13,000 heads of families, instead of the target of about 21,000.

This was because the Directorate for Preparing Transmigrants' Residences,

newly formed in 1977, needed time to prepare itself. In addition, there are

still problems of inconsistency and lack of coordination in the efforts to

bring about a system of functionalization. This information came from a

KOMPAS source at the Directorate General of Transmigration.

It was explained that in the system of functionalization, departments, especially general directorates involved, would be more directly concerned and

fully responsible for their respective fields. For example, the directorate

general of construction in the Department of Public Works would be responsible for preparing residential sites, and the Department of Agriculture

would be responsible for preparations in agricultural production (providing

instructors, etc). Another consequence of this is the influx of new ideas

and suggestions about the transmigration program from the general directorates

involved, which differ from the system established by the General Directorate

of Transmigration. Later, there will be a vice minister of transmigration

who will have new ideas.

At this moment, discussions are continuing on establishing a program which

is expected to be disseminated in a presidential decision. The general directorates and the deputy minister have met with the president on several occasions but have not yet settled their problems.

According to the KOMPAS source, it is better to continue the discussions for

a long time, so that the results will be practical and will guarantee optimal

results. Particularly because in the future, transmigration will become a

large program involving many people, much money, and many regional development projects.

28
The problems are, of course, complex and will become increasingly complex

as the program grows. In the first and second Five-Year Plans, the target

was only 30,000 heads of families per year; in the third Five-Year Plan it

is 100,000 per year, for a total of 500,000 heads of families.

This means the acreage which must be opened will also increase greatly,

although it must be chosen well in order to avoid the poverty which resulted from past movements. Moreover, there are new demands for a program

of transmigration which aids regional development. The transmigrants and

the community are increasingly critical of the results of the transmigration

project.

The KOMPAS source could not predict how long the discussions will continue.

Most important, we pray that they will give a clear opinion, and that general interests take priority over individual interests.

9197

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29
INDONESIA

GOVERNMENT NOT SUSPICIOUS OF RELIGIOUS COMMUNITY

Jakarta ANGKATAN BERSENJATA in Indonesian 7 Jul 78 pp 1, 8

[Excerpt] The Government is not suspicious of the religious community because the development program being carried out by the Government today has

the welfare of all religious groups in Indonesia as its objective.

The minister of religious affairs, H. Alamsyah Ratu Prawiranegara, repeatedly

emphasized this point in talks given to Moslem religious scholars in Banyumas

and Kebumen during a working visit to Moslem religious schools in the two

regions on Wednesday.

He said the government considered religions to be the spirit of the country

and the people and that the religious community had consistently cooperated

with the government in safeguarding the country against subversive activities

that threatened the well-being and unity of the people, such as the 30 September Movement.

He admitted that previously the government and the religious community had

been suspicious of each other, but he said that this should not have happened

because it weakened the country and the people.

The minister called on the religious community to put aside their suspicions

and to work with the government in developing the country and creating the

just and prosperous society aspired to by all the Indonesian people, based on

the Pancasila. As believers in God Almighty and life after death it would be

a sin for them to turn down a sincere gesture of goodwill from the government,

Alamsyah said. "We must not hold grudges against and be suspicious of each

other. All misunderstanding must be completely removed and we must return to

the right path leading toward a just and prosperous society which is blessed

by God Almighty," Alamsyah said.

The minister further stated that three types of harmonious relationsships were

necessary for the government to attain its objectives, namely, harmony within

each religious group, harmony between religious groups, and harmony between

the government and the religious community.

9316

CSO: 4213 30
INDONESIA

TANTI AIDIT APPLIES FOR LEGAL ASSISTANCE

Jakarta KOMPAS in Indonesian 16 Aug 78 p 3

[Text] Mrs Mudikno, mother of Dr Tanti Aidit, recently asked the LBH DKI

[Legal Aid Association, Special Capital Region] to defend her daughter, who

is being tried before the Court of First Instance of West/South Jakarta

Adnan Buyung Nasution of the Greater Jakarta LBH DKI directorate revealed

this to KOMPAS last Monday. However, Buyung was unable to say which public

defender would be appointed for the suspect.

The wife of the former chairman of the Indonesian Communist Party Central

Committee faces charges of criminal subversion. She will be tried in connection with her activities following the eruption of the unsuccessful

30 September Movement/PKI rebellion in 1965.

Mrs Tanti Aidit reportedly returned from abroad 2 days before the outbreak

of the rebellion. From September 1964 to 27 September 1965, she studied

acupuncture in North Korea.

After the rebellion was crushed, she left her home at Pegangsaan Barat No 4,

central Jakarta, and moved to Kebayoranbaru and then Kebayoranlama. She

later left Jakarta for Surakarta, and then hid in Semarang.

During her "rovings," Mrs Aidit was contacted once by several former PKI

activists. Before her arrest, Mrs Aidit, who has been in custody since

19 December 1966, collected funds to purchase medicine for the families of

PKI activists and received the pamphlet "Mira," which is published by the

shadow PKI.

As yet, there is no information on which judge will preside at her trial.

Anton Suyoto of the Jakarta district attorney's office will serve as public

prosecutor.

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31
INDONESIA

WIFE OF FORMER PKI LEADER TO GO ON TRIAL

Jakarta ANGKATAN BERSENJATA in Indonesian 8 Jul 78 p 1

[Article: "Mrs Aidit To Be Tried Soon"]

[Text] The case file of Dr Tanti Aidit, 55, the widow of D. N. Aidit, former

chairman of the PKI central committee was turned over to the office of the

Jakarta District Attorney on 7 July. According to information obtained by

KNI [Indonesian National News Agency], the case will be brought to court after

a prosecutor has been appointed and the case file has been studied.

Dr Tanti Aidit was arrested by state security agents shortly after the outbreak of the G-30-S/PKI [30 September Movement/Indonesian Communist Party]

on 30 September 1965.

It is reported that Dr Tanti Aidit was one of the leaders of GERWANI [Indonesian Women's Movement]. Her case is the second G-30-S/PKI case involving

leaders of GERWANI.

Sulami and three co-defendants were tried by the Central Jakarta State Court

3 years ago.

They were GERWANI leaders who worked underground distributing illegal pamphlets

which were intended to revive the banned communist party after the G-30-S/PKI

failed.

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32
INDONESIA

272 OBSTETRICIANS SAID TO HANDLE 5 MILLION BIRTHS

Jakarta KOMPAS in Indonesian 16 Aug 78 p 8

[Excerpt] Indonesia is short of obstetricians and gynecologists. At present

there are only 272 obstetricians and gynecologists nationwide. Meanwhile,

5 million babies are born in Indonesia each year. Prof Sulaiman Sastrawinata,

chief of the obstetrics and gynecology section of the medical department,

Padjadjaran University/Hasan Sadikin Hospital, told this to KOMPAS after

awarding certificates in those fields to Dr Achmad Biben, Dr Dinan S.

Bratakoesoema and Dr Achmad Hidayat last Saturday at Hasan Sadikin Hospital,

Bandung.

Of these 272 doctors, only about 200 are reported to be still practicing.

The remainder are retired or dead. Meanwhile, all the colleges which have

medical departments or hospital educational facilities can produce only four

a year.

According to Dr James Thouw, chairman of the Bandung branch of the Indonesian

Association of Obstetricians and Gynecologists, there are only 27 obstetricians and gynecologists in West Java. There are 21 in Bandung, and one, each,

in Tasikmalaya, Bogor, Serang, Sukabumi, Cirebon and Garut. This is a severe

shortage in view of the number of babies born each year and the large population in the area.

He said that, ideally, there should be one obstetrician/gynecologist for each

40,000 inhabitants.

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INDONESIA

POLISH FOREIGN TRADE MINISTER VISITS JAKARTA

Balance of Trade

Jakarta KOMPAS in Indonesian 23 Aug 78 p 2

[Text] Jerzy Olszewski, Polish minister of foreign trade and maritime

economy, will visit Indonesia on August 24 through 27 on invitation of

the Indonesian minister of trade and cooperatives, Radius Prawiro.

Mr Olszewski is scheduled to meet with a number of Indonesian ministers,

including the minister of trade and cooperatives, minister of mines and

energy, deputy chairman of the National Planning Board and concurrently

minister on state apparatus, minister of foreign affairs and minister of

agriculture.

During the past 5 years, the balance of trade between the two countries

turned out to be in favor of Poland, except in 1973 when Indonesia netted

a surplus of U.S. $3,022,916. At that time, Indonesia's exports to Poland

totaled U.S. $6,249,916, while her imports reached U.S. $3,227,000.

Afterward, during the years of 1974 through 1977, the balance of trade

between the countries was more favorable to Poland. Even for the years of

1974 and 1975, the surplus enjoyed by Poland reached more than U.S. $34

million each year, because during this 2-year period Indonesia imported

large quantities of fertilizer from Poland. During these 2 years Indonesia's

fertilizer import amounted to more than U.S. $36 million and U.S. $38 million respectively.

In 1974, Indonesian exports to Poland reached U.S. $8,628,518, while her

imports were U.S. $43,600,000. In 1975, her exports amounted to U.S.

$6,474,668, while her imports reached U.S. $42,230,280.

In 1976 and 1977, Poland's trade surplus was less than U.S. $5 million

each year, because Indonesia no longer imported fertilizer from Poland.

During this period Indonesian exports to Poland mainly consisted of

tin and natural rubber.

34
In 1976, Indonesia's export to Poland amounted to U.S. $1,284,305, while

her imports totaled U.S. $5,738,944. Indonesian exports for the year 1977

amounted to U.S. $6,608,378 and her imports from Poland were valued at

U.S. $6,961,448.

Indonesian Indebtedness

Jakarta KOMPAS in Indonesian 26 Aug 78 p 2

[Text] Radius Prawiro, the Indonesian minister of trade and cooperatives,

has made a statement requesting Poland's consideration to import more goods

from Indonesia. By increasing her imports of Indonesian products, he

stated, the trade balance between the two countries, which is currently

in Poland's favor, can be evened out.

"If possible, our trading with Poland should benefit Indonesia," Minister

Prawiro told newsmen after meeting with Jerzy Olszewski, the visiting

Polish minister of foreign trade and maritime economy, on Friday. The

reason, he added, is that Indonesia is still required to clear her old

debts to Poland.

Referring to his notes, Minister Prawiro said that Indonesia's debts incurred in the past amounts to U.S. $96.6 million. This amount is to be paid

back in 60 installments, once every 6 months beginning in 1971, or around

U.S. $3 million per year. "For this payment, we need foreign exchange

accruing from our exports, among others through trading with Poland, which

should benefit Indonesia, so that we can clear our debts," he explained.

The fact is that at present the Indonesia-Poland trade is still in Poland's

favor. In 1975 Indonesia suffered a deficit of U.S. $35.8 million in her

trade with Poland. This figure dropped to U.S. $4.5 million in 1976 and

further to U.S. $350,000 in 1977. Commercial relations between the two

nations are based on a trade agreement initialed in 1974.

According to Minister Prawiro, Minister Jerzy Olszewski personally preferred a long-term trade cooperation through which several categories of

Indonesian commodities can be imported by Poland.

Late last May a Polish trade mission visited Indonesia to explore the possibilities of Polish participation in Indonesian development projects.

Poland is in a position to help supply semi-container shipping, sugar mill

equipment and others. On the other hand, Poland wants to buy from Indonesia 4,000 tons of tin, 60,000 tons of natural rubber, 30,000 tons of

coffee, 35,000 tons of tea, 2,000 tons of pepper and palm oil. Minister

Prawiro did not elaborate on these problems, which were first divulged in

May, 1978

He added that Indonesia wishes Poland to buy Indonesian commodities directly, instead of importing Indonesian palm oil through Belgium, a transaction

which once occurred.

35
Four Areas of Interest

Jakarta ANGKATAN BERSENJATA in Indonesian 28 Aug 78 pp 1, 7

[Excerpts] Poland has offered cooperation with Indonesia which has been

well received and which will first be looked into by us, said Radius Prawiro, minister of trade and cooperatives, at Bina Graha on Saturday.

The four types of cooperation offered by Poland are the following: Firstly,

concerning cooperation in the field of trade and its intensification;

secondly, joint ventures between Poland and Indonesia in the field of industry (at present there is only one such joint venture located in Tangerang,

and therefore such cooperation needs to be examined and developed); thirdly,

cooperation for the industrial processing of coal; and fourthly, cooperation in the field of technology for fishing on the high seas.

Answering questions, Minister Prawiro said that Indonesian exports to East

European countries have been on the increase in general. The total exports

for 1977 reached U.S. $100 million, which he termed as beneficial to Indonesia.

However, these exports are less than our exports to industrialized countries,

such as Japan, because socialist countries do not constitute open markets,

and, moreover, they adopt a planned economy according to pre-set schedule.

Japan adopts general system preferences.

Coal Team to Poland

Jakarta KOMPAS in Indonesian 30 Aug 78 pp 1, 12

[Excerpt] A team of experts will be sent by the Indonesian government to

Poland to study technology and gain experience in the field of coal utilization. The dispatch of this team represents a follow-up to the visit last

week of the Polish minister of foreign trade and maritime economy, Jerzy

Olszewski.

For one full hour at Bina Graha yesterday President Suharto discussed

further steps to be taken following the Polish minister's visit with Professor Subroto, the minister of mining and energy, and Dr B. J. Habibie,

the minister of state for research and technology. Specifically, they

discussed Poland's offer in the field of coal utilization.

In his statement after the meeting, Minister Subroto said that Poland's

technology and experience in the field of coal utilization represents the

most advanced in the world. That country produces 200 million tons per

year, of which around 160 million tons are for domestic consumption.

He said President Suharto requested that Poland's coal technology and

experience be thoroughly studied and investigated for its adoption in

36
Indonesia. The Indonesian team to be sent to Poland will be composed of

experts from the State Electricity Enterprise, State Coal Enterprise and

Body for the Processing and Application of Technology.

Considering the great potentials of Indonesian natural resources, Indonesia

is showing deep interest in the Polish government's offer of cooperation.

This matter also coincides with the national policy in the field of energy,

which has chosen coal as our prime source of energy. Such a policy augurs

well for the slowing-down of the use of oil, especially to generate electricity.

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INDONESIA

ADB LOANS TO INDONESIA TOTAL $200 MILLION IN 1978

Jakarta KOMPAS in Indonesian 2 Aug 78 pp 1, 12

[Text] Indonesia will borrow a large sum from the Asian Development Bank

(ADB) this year. ADB loans will total around $200 million, a considerable

increase over the 1977 total of $136 million. Of this total, $65,4 million

have already been earmarked.

ADB president, Tariochi Yoshida, announced this to the press after meeting

with President Suharto in the Bina Graha Tuesday morning. Yoshida was accompanied at the meeting by the minister of finance, Prof Ali Wardhana.

In addition, the ADB will go along with "local cost financing" projects in

Indonesia and assist the government in discussing the cofinancing of projects with financial institutions.

Yoshida noted further that ADB loans this year will be used to develop some

9 or 10 projects. Two projects have already been approved—a $31.4 million

electrification project and a $34 million highway construction project.

Other projects under consideration include agricultural, electrification,

harbor, airfield, and education; processing on these is expected in the next

2 or 3 months.

Indonesia ranks fourth in ADB loans to date, with a total of $587 million,

including $464 in ordinary loans and $113 million from, aspecial fund, with

easy terms. The ADB has also provided various kinds of technical assistance,

worth about $5.5 million. In 1977, Indonesia received five loans totalling

$136 million from the ADB, as well as $800,000 in technical assistance.

When asked why the ADB had approved Indonesia as a large borrower, Yoshida

said that this was difficult to say since 43 nations have joined the ADB

and all of them need help. All you can say is that Indonesia certainly needs

considerable assistance, Yoshida noted.

38
Responding to a question of if the granting of large loans signified ADB

trust in Indonesia, Yoshida said that this is not necessarily the case. As

a development bank, the ADB cannot refuse a nation's request for a loan if

that loan is badly needed for development. However, the ability to absorb

that loan is very important. If a nation can absorb it, ADB will grant it

The capabilities of existing funds are definitely considered.

In the meeting with President Suharto, Taroichi Yoshida was briefed on

Indonesia's future development plans and said he was impressed by the direction of Indonesia's development.

After meeting with President Suharto, he met with Vice President Adam Malik.

Later, the ADB president discussed ADB loans with Finance Minister Ali

Wardhena.

Yesterday, Taroichi Yoshida talked with the minister of public works, Dr

Puernomosidi Hadjisaroso. Mr Yoshida arrived in Indonesia on Monday'evening for a 5-day visit, during which he will inspect the Sempor reservoir

and the Gärung Central Hydroelectric Power Station at Wonosobo.

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INDONESIA

TWO FINANCIAL AID AGREEMENTS SIGNED WITH WEST GERMANY

Jakarta KOMPAS in Indonesian 16 Aug 78 p 13

[Text] A financial aid agreement between Indonesia and the Federal Republic

of Germany was signed at the Department of Foreign Affairs Monday by Foreign

Minister Mochtar Kusumaatmadja and West German Ambassador Günther Schodel.

Based on this agreement, West Germany will grant a loan of 115 million marks,

worth about $224.88 million at the free market exchange rate. The loan will

be on easy terms, at 2 percent interest and 30 years for repayment and a

10-year grace period.

The agreement was reached during negotiations held last May in Bonn. It was

agreed that the funds would be used to improve the Padang-Bukittinggi highway,

for water treatment in Tegal, electrification in Solok-Padang and Central Java,

and for a railroad telecommunications system.

West Germany also agreed to make 128 million marks available in loans and

grants to purchase ships in West Germany for customs patrol and search and

rescue operations. Of these funds, 25 percent will consist of grants, in

keeping with the guidelines of the Development Aid Commission of the OECD,

to be covered by a separate agreement.

In his speech, Ambassador Schodel noted that West German developmental aid

is based on two principles: first, orientation toward the special needs of

the people of the developing nation, with emphasis on the fields of health,

nutrition and education; and second, as a contribution to the developing

nation's integration into the world economy, in accordance with the developing nation's desires. In addition, the West German Government views trade

and private capital investment as important factors in international

cooperation.

To date, West Germany has given Indonesia 1.7 billion marks, 420 million in

loans and the balance in technical aid in the form of grants.

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40
INDONESIA

FOOD-CROP PRODUCTION UP, STOREHOUSES FULL

Jakarta KOMPAS in Indonesian 2 Aug 78 pp 1, 12

[Excerpts] The creation of food stocks this year reached the equivalent of

703,000 tons of rice by the end of July. Food stock accumulation has generally proceeded smoothly because the wet rice harvest was good, the attack

on hama has been stressed, and the climate has been favorable. It is estimated

that the government will accumulate approximately 800,000 tons of rice this

year.

The minister of agriculture, Prof Ir Soedarsono Hadisaputro, and Deputy

Minister of Cooperation Bustanil Arifin revealed this to the press yesterday in Surabaya. The minister of agriculture provided this information at

the conclusion of the fifth food stocks coordination session, held in the

Hotel Mirama in Surabaya from 0900 to 1430 yesterday.

According to the minister, such food stock coordination sessions have been

held monthly since May and have been attended by all departments and high

provincial authorities concerned. The session in Surabaya is the last one

this year. Further sessions will be organized to deal with food stocks next

year. This year, coordination sessions have also been held in East Java,

Central Java, Yogyakarta Special Region, West Java, Bali, West Lower Suridas,

South Celebes and South Borneo.

The minister of agriculture stressed that these food stocks were designed to

stabilize the price of food/rice and to give the farmer a fair return for

his production. Thus, the farmer's income will rise. Past efforts to improve the farmer's lot centered around increasing production; now, marketing

will be stressed.

The minister confirmed that the good harvest will reduce the amount of rice

imported, but he did not specify by how much.

Meanwhile, deputy Minister of Cooperation Bustanil Arifin, in response to

a correspondent's question, noted: "As of now, stocks are around 1.6 million tons, and we are somewhat at a loss as to what to do." He added that

all logistics bureaus warehouses were full, so there is no place to store

imported rice.

41
Bustanil confirmed that additional warehouses will be built soon, especially

in several areas experiencing storage problems. Two are under construction

in South Boreno and should be completed in 2 months. In all, 100 warehouses

will be constructed, each with a capacity of 100 tons.

Minister Soedarsono also revealed that the government would import 1,100

cows from the Netherlands and Australia this year and will be given to cattle breeders on credit, particularly to dairy breeders.

Lach farmer will receive two cows and 800,000 rupiahs in credit for their

care. Breeders must sell their milk to the cooperative, and payment will be

made via the People's Bank of Indonesia until the credit is recovered through

milk sales. This plan will begin in fiscal year 1978/79, and will proceed

by stages.

When asked how the 1,100 cows would be allocated, the minister said he did

not yet know. "Registration for selection is underway," he said. In each

location, cooperatives will acquire refrigeration units on credit.

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INDONESIA

MARCH 1978 FIGURES ON OIL, NATURAL GAS PRODUCTION GIVEN

Jakarta ANGKATAN BERSENJATA in Indonesian 6 Jul 78 p 3

[Text] Indonesian oil production in March 1978 was 52,752,622 barrels, or a

daily average of 1,701,697 barrels.

Five Pertamina units produced 2,679,871 barrels, Lemigas produced about

20,778 barrels, Caltex, C&T and Stanvac produced 24,312,017, 224,022 and

1,027,314 barrels, respectively (the total production of the three amounted

to 25,563,353 barrels), and 16 foreign companies operating on production-sharing contracts produced 24,488,620 barrels.

Pertamina also announced that in March 1978 natural gas production amounted

to 65,391,077 MSCF, or an average daily production of 2,109,390 MSCF.

Four Pertamina units produced 8,805,308 MSCF, Lemigas produced 30,378 MSCF,

three companies operating on work contracts produced 6,659,286 MSCF, and 14

foreign companies operating on production-sharing contracts produced 40,896.105

MSCF.

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INDONESIA

MINING MINISTER COMMENTS ON OIL PRICES, EXPORTS, LNG SALES

Jakarta KOMPAS in Indonesian 22 Aug 78 pp 1, 12

[Excerpts] Prof Subroto, minister of mining and energy, said that OPEC is

readying the necessary measures to raise oil prices during 1979. These

preparations will be carried out this December in Abu Dhabi.

Prof Subroto was not prepared to say what steps OPEC will take, or what

Indonesia had proposed. He said only that the rise in oil prices would not

be implemented "recklessly," because a price rise will have a definite effect

on industrial activity in advanced nations and on economic growth in Third

World nations.

When asked how large the increase would be, Prof Subroto replied it has not

yet been decided. "However, the feeling is that it will be an increase of

at least 5 percent over present prices," he said.

Data available at the Department of Mining and Energy indicates that Indonesian oil exports rose in 1977. In that year, Indonesian oil exports

reached 484,236,781 barrels, compared to 449,470,769 barrels in 1976.

Indonesian oil exports are channeled through Pertemina, Caltex, Stanvac

and Calasiatic and Topco.

Pertamina and Calasiastic and Topco exports rose in 1977; conversely, Caltex

and Stanvac exports declined.

According to this data, exports to the United States (including Hawaii),

Australia, Trinidad and the Bahamas declined in 1977. Indonesia exported

181,650,052 barrels to the United States in 1976 and 178,014,593 barrels in

1977. Exports to Australia were 762,312 barrels in 1976 and 599,806 barrels

in 1977. Exports to Trinidad fell from 44,853,274 barrels in 1976 to

37,238,678 barrels in 1977. The Bahamas imported 6,081,944 barrels in 1976

and 4,103,976 barrels in 1977.

Minister Subroto told a correspondent that Indonesia is still seeking a market for its liquid natural gas (LNG), since the United States has neither

accepted nor rejected Indonesia's formula for price escalation. He noted

that Japan and Europe are being sounded out as potential markets.

44
II' it is certain that there is no buyer, Subroto noted, the LNG will be

stored underground. "Won't that be a loss, since it costs money for exploitation?" asked a reporter. "it's a loss now, but not later. That is

because we will see an increase in the demand for LNG in the years to come."

He added that^ the American Government has not reached an agreement on price

escalation. "Previously, private American firms agreed to buy LNG," he noted.

However, he added, acceptance of the escalation formula awaits a government

decision.

Prof Subroto noted that if the American Government rejects the Indonesian

proposal no further negotiations will be necessary. "The Indonesian proposal is already a compromise offer, and we can not retreat further."

According to available information, the last formula proposed by Indonesia

to. the U.S. Department of Energy is that the base price of LNG be set at

$1.25 per million BTU. Half of the price rise in LNG would be tied to an

increase in the export price of Indonesian oil to a maximum of 15 percent.

This means that under this formula the potential rise in LNG prices is

7.5 percent.

The other half of the price rise is tied to the U.S. "wholesale price index,"

which is currently moving at a right of 8-9 percent a year. Thus, the potential increase from this factor is only about 4 percent.

The original Indonesian formula called for a base price of $1.25 per million

BTU. Half of the price rise would be tied to the export price of Indonesian

oil, with no maximum limit. The other half would have been tied to a rise in

the U.S. Bureau of Labor Statistics' energy index.

Minister Subroto also stated that Indonesia's energy consumption is rising.

In 1977, energy consumed for development in Indonesia totalled the equivalent

of 24 million tons of coal. Of this amount, 89 percent was oil, 8.3 percent

natural gas, 0.2 percent liquid petroleum gas; 0.7 percent coal and 0.9 percent hydroelectric.

At the end' of the Third Five-Year Development Plan, Indonesia will be consuming the equivalent of 51 million tons of coal per year. Of this amount,

79 percent will be oil, 16 percent natural gas, 0.36 percent liquid petroleum

gas, 2.4 percent coal, 2 percent hydroelectric and 0.025 percent thermal.

Subroto noted that the projected increase in energy consumption is based on

an assumption of 2 percent annual increase in population, 6.5 percent annual

increase in production and 1.7 percent elasticity.

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INDONESIA

EAST TIMOR'S DILI AIRPORT TO BE MOVED TO KOMORO

Jakarta ANGKATAN. BERSENJATA in Indonesian 10 Jul 78 p 3

[Article: "Dili Airport Will Be Relocated to Komoro"]

[Excerpt] The main airport for Dili, the capital of East Timor province

will be moved to Komoro.

Director General for Air Communication Kardono made the announcement upon

completing his 5 to 7 July inspection trip to airports in East Nusatenggara

and East Timor.

He said that the runway at Komoro airport can be extended from its present

1,400 meters to 1,800 meters; its width is 30 meters. The Dili airport, on

the other hand, is very close to Dili and cannot be expanded as it is blocked

by the city, he said.

The Dili airport is located on low land and its drainage system does not

function effectively during the rainy season. This makes the runway wet and

slippery for landing aircraft, he said. "Besides, Dili will grow in size and

it would be better to utilize the airport for this purpose," he added.

Kardono said that the work on the Dili runway, 30 percent complete, has been

stopped. Activities have been shifted to Komoro, which is farther away from

the city, seven kilometers to the north.

Upon completion of the inspection trip to Dili, Komoro and Baucau airports,

he said that Komoro airport does not have enough personnel and that the Baucau

airport locator is out of order. The length of the runway at Baucau is 2,400

meters and its width is 70 meters. In bad weather and conditions of low

visibility, pilots find it difficult to locate the runway. A locator is an

instrument which shows the location and direction of a runway.

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INDONESIA

PASMINDO TO REGULATE CARGO HANDLING, SHIPPING PRACTICES

Jakarta KOMPAS in Indonesian 21 Aug 78 p 2

[Excerpts] For users of the services of the Department of Communications,

particularly the General Directorate of the Sea Communications, a new organization was formed Saturday to accelerate healthy relations and the exchange

of views among shipping enterprises and cargo shipping lines. The new group

includes the organizations for the users of port services, Gaveksi and the

Indonesian Shipowners Assocication. It is named the Indonesian Shipborn

Cargo Marketing Organization (Pasmindo). It is the first group of its kind

formed in Indonesia.

Captain Harun Rasjidi, chairman of the Indonesian Shipowners Association

central executive council, served as the Pasmindo spokesman at a press conference held Saturday in the Department of Communications auditorium. He

explained that the institution will serve as a clearing house for requests

for cargo space.

According to Harun Resjidi, the formation of Pasmindo was an attempt to address the problems faced by individual shippers and by wharfage and transport enterprises/cargo shipping lines, and it will maintain discipline among

the members of Gaveski and the Indonesian Shipowners Association.

Rate wars, the prevalence of discount (commission) practices, manipulation of

the classification of goods in the contest for control of freight must not

continue. All these weaken the 400 shipping enterprises and the 500 wharfage

and transportation enterprises/cargo shipping lines in Indonesia.

In 1977, Indonesian ships handled just 7.76 percent of the cargo involved in

the country's foreign trade out of a total of 95,777,000 tons. The rest was

carried by foreign vessels. This hurts Indonesia's balance of payments

Indonesian carriers handled just 41.3 percent of interisland cargo transportation. Indonesian regular lines services are concerned, since about 70 percent of them failed to reach the "break-even point."

The rates have been in effect since June 1975 and are still very high, according to Harun Rasjidi. This does not help or improve the interisland shipping

47
outlook. If such practices are not restrained, Indonesian shippers will be

wiped out within 2 years, and foreign shippers will return to operate throughout Indonesia.

In its initial stage, according to Harun Rasjidi, Pasmindo will straighten

out bookkeeping methods and the coordination of shipping, particularly of •

government goods, in harbors where it is believed necessary, including

Surabaya, Tanjungpriok and Pontianak. All forms of unhealthy competition will

be abolished, including rate wars, discounts and competition in the classification of goods.

Later, Pasmindo will try to balance cargo and cargo space, insure the correct

transfer of goods, achieve the most rapid handling of cargo possible, protect

against unemployment, safeguard passage money, organize a transportation bank

in the future and arrange insurance for transported goods.

Still later, Pasmindo will control shipping, both into and out of Indonesia.

At least 50 percent must be carried on Indonesian flag vessels.

The secretary general of the Department of Communications, Lt Gen Taher, said,

among other things, that the problem of controlling cargo and its rapid transport from one place to another at reasonable cost is greatly desired by the

public.

With the formation of Pasmindo, it is hoped that these conditions can be

achieved, or at least a forum will exist in which improvements can be discussed and implemented. "We hope that all commercial enterprises which ship

goods will use Pasmindo."

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INDONESIA

SUPPLY SHORTAGE AT SOUTH KALIMANTAN RUBBER FACTORIES

Jakarta KOMPAS in Indonesian 29 Aug 78 p 13

[Text] The crumb-rubber industry in South Kalimantan faces a raw materials

crisis. Dr Asmaji Darmawi, secretary of the South/Central Kalimantan

branch of the Indonesian Rubber Producers Association, announced this to

KOMPAS on Saturday, 26 August.

It was explained that the shortage in raw materials resulted from a decline

in individual rubber production, without a corresponding effort to raise

production.

Estate service data indicates that individual rubber production in South

Kalimantan is falling at about 4.4 percent per year. For example, rubber

production in 1969 was 46,379 tons in South Kalimantan, while in 1977, production was just 21,000 tons. The capacity of the nine licensed crumbrubber plants in South Kalimantan was 37,680 tons per year; actual production was about 36,000 tons.

The crumb-rubber industry in South Kalimantan is helped by raw materials

from Central Borneo. However, there is competition for Central Kalimantan

raw materials between crumb-rubber factories on the one hand and commercial

exporters on the other. Although there are only four exporters in South

Kalimantan, they are better able to purchase rubber because they have a lot

of capital. As a result, they are able to draw in the majority of the

available supply, in contrast to crumb-rubber plants.

The crumb-rubber industry has developed a new process which treats rubber

with "unsmoked sheets." This process is more practical because it benefits

the farmer and the factories. The farmer does not have to smoke the rubber

after tapping; it can pass from tapping directly to coagulation, which is

easier and less expensive. Production is also easier for the factory, and

several machines can be used economically.

The new method will be applied in South Kalimantan, where the Indonesian

Rubber Producers Association will work with the village cooperative unit.

However, facing the challenge will not be easy because the commercial exporters, whether they want to or not, must find other means to approach the

farmer so that the price of tapped rubber will be greater than that of

coagulated rubber.

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INDONESIA

CEMENT EXPORTS TO BEGIN; PRODUCTION FIGURES NOTED

Jakarta KOMPAS in Indonesia 5 Aug 78 p 2

[Text] Indonesia will begin exporting cement to Thailand in September,

sending 50,000 tons initially. At that time, Indonesia will stop importing

cement. Thus, Indonesia is changing from a cement importer to an exporter.

Ir Agus Sujono, director general of the chemical industry, revealed this to

the press Thursday at the Gresik Cement Factory in East Java. That daY, the

director general lit the furnace for the first time which represents the third

stage of the Gresik Cement Factory expansion. With this expansion, the factory's production will increase from 500,000 tons per year to 1.5 million.

Indonesia imported around 300,000 tons of cement in 1978, but such imports

will cease in August.

Indonesian cement production, following the expansion of the Gresik factory,

is expected to reach 4.5 million tons per year. This comes from the following six factories: Cibinong Cement (1.2 million tons), Indocement (1 million tons), Gilacap Cement, Central Java (600,000 tons), Gresik Cement, East

Java (1.5 million tons), Indarung Cement, Padang (330,000 tons), and Tonasa

Cement, South Celebes (120,000 tons).

In 1979, there will be several other expansion projects so that production

will rise to 5.7 million tons per year, while in-country demand is only 4.7

million tons per year. This means a surplus of 1 million tons will be available for export.

Following the initial export of 50,000 tons to Thailand, there will be exports

to other nations. Several nations have already proposed themselves as customers, including Australia and the Middle East. The export of the first

batch to Thailand is possible because the shipping costs are competitive

with other cement exporting nations. The sale was also made at a "favorable"

price.

50
When asked about the price, Director General Agus Sujono was not prepared

to answer, since this is a commercial secret. Other exporting nations might

find out and become rivals.

According to plan, several other cement factories will be built in North

Celebes, Timor, Madura and other localities. Meanwhile, no recommendations

have been made to build new cement factories in Java. Expansion of the

present factories on Java will be stressed rather than building new ones.

The demands of eastern Indonesia, which required imports on several past

occasions, can now be fully met from Java.

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51
LAOS

BRIEFS

FACTORIES GIVEN TO THE STATE—During the morning of 3 August Khamphong

Photisen and his family gave their nail factory, located in the village of

[Ban] Phon Sa-at, district of [Meuang] Saisettha, in the Vientiane

prefecture, to the State. Previously, in the afternoon of 2 August,

Sisouvan Boualavan, owner of a mushroom seed factory in the village of

[Ban] That Louang, in the Vientiane prefecture, accompanied by his family,

gave his factory voluntarily to the State Directorate of Industry and

Commerce Department, in the Vientiane prefecture. [Text] [Vientiane

BULLETIN QUOTIDIEN in French A Aug 78 p 2] 7993

PRINTING HOUSE GIVEN TO STATE—In the morning of 4 August, Yung Vongvilai

and his family, owner of the "Vientiane" Kan Phim" printing house voluntarily gave their printing house to the State. This printing house contained two printing presses, one perforator, two paper cutters and other

complete equipment valued at one million kip.. [Text] [Vientiane BULLETIN

QUOTIDIEN in French 5 Aug 78 p 6 ] 7993

MEUANG HIN BOUN POST OFFICE—In order to improve circulation of Party and

government notices and instructions to the regions, the postal service of

the [Meuang] Hin Boun District, Khammouan Province, established two new

post offices in the [Taseng] Poung Neua and [Taseng] Hin Boun communes.

At the present time 15 communal post offices are listed in the district.

[Text] [Vientiane BULLETIN QUOTIDIEN in French 12 Aug 78 p 3] 7993

VIENTIANE FLOOD CONTROL—Recently the Mekong level rose to the danger

point and since the evening of 13 August, in order to safeguard the

belongings and life of the population, thousands of Vientiane residents

comprising the cadres, employees, workers and combatants belonging to the

various departments, as well as the pupils and students from the Vientiane

prefecture, diligently came to the aid of the population in its battle

against the floods. Sanan Soutthichak, minister of communications, public

works and transports, chairman of the fight against floods, Sisavat

Keobounphan, cabinet minister, chairman of the managing committee of the

prefecture of Vientiane, Singkapo Sikhotchouniamany, deputy minister for

communications, public works and transports, Deuan Sounnalat, deputy

minister for agriculture, forests and hydraulics, Phao Phimphachan,

52
chairman of the revolutionary administrative committee of the Vientiane

prefecture, also participated in this fight at the side of the population.

In addition, the cadres and employees of the Ministries of Education,

Interior, the Hydraulic service of the Vientiane prefecture, in conjunction

with the local population of Ban [village] Horn, [Ban] Nong Heo and [Ban]

Nong Veng (district of [Meuang] Eatsaifong) southern suburb of Vientiane,

were able to control the overflowing of the waters all along the road to

Tha Deua, thus saving tens of thousands of hectares of ricefields belonging

to the population of those areas. [Text] [Vientiane BULLETIN QUOTIDIEN

in French 16 Aug 78 pp 1, 2] 7993

7993

CSO: 4200

53
MALAYSIA

STOCK MARKET BOOMING, NEW RECORDS SET

Kuala Lumpur BUSINESS TIMES in English 2 Sep 78 p 12

[Article by Susan Tham]

[Text]

SATURDAY Night

Fever, the advertisement boasts, is in town,

the seventh week runnine- In these seven

weeks, the "fever" has

clearly spread and huge

the numbers burning

with It. But with due respects, another fever has

been around longer, just

as Irresistable, spreading sensations just as

rosy.

Its the fever on the

stock market. For some

months it has been incubating and about a

month ago, it broke out;

first in moderate temperatures, but the past

fortnight in real "brain

frying" heat. The "buy,

buy" calls have reverberated In intensity

through the 33 stock

broking houses in

Malaysia as the

scramble gathered

steam.

This is quite an impressive change against,

say a year ago, when

broking houses remained blissful, serene

— and empty — places.

To show how badly the

fever has hit the market,

it recorded the highest

ever volume for a single

day on Tuesday — 12.14

million shares. Just the

day before, it recorded

11.63 million shares

which beat the previous

-high of 11.33 million set

way back in March 1975

CSO: 4220

during the "mini-boom."

(Talking of boom, the

whetted appetites of

those who have relished

early profits or the

heady boom of 1972-73

have done startling

things to all the important indicators.)

Take for instance, the

generally consulted market barometer, the New

Straits Times industrial

ordinary share index.

This went past the 400

mark on July 28 and is

now approaching the 450-

point level. Yesterday it

was at 441.43 but at its

peak of 444.03 on Aug. 28,

It was standing at a fiveyear high.

*. Since the year started,

It' has appreciated 50 per

cent. As a general indication, think of what

that means in terms of

capital appreciation.

This helps to explain the

fever.

The upsurge is not confined to the industrial

stocks. Almost all sections of the market have

enjoyed varying degrees

of applications.

Take the financial

stocks. With the shift of

interest to them they

have gone up 18 per cent

within one month. The

index broke through the

600-barrier to 600.59 on

Wednesday, another

five-year high. Increases

in the other market

areas ranged from 3.3

per cent to some 23 per

cent over the similar period.

Against end 1977

levels, prices of hotel

and tin stocks have advanced 32 per cent and 26

per cent respectively; f>

nancial and property

stocks by 61 and 64 per

cent and rubbers by as

much as 69 per cent.

This indicates how fast

the market has grown

over the last few months.

There are unmistakable

traces of the 1972-73

boom In the current upsurge but traders would

do well to remember too

the bitter lessons of the,

fall that followed. Just as

there was fever then,

there is fever now; and

just as fever burned

then, it will burn again if

people are not careful.

An over heated rise, or

too excessive speculation would only serve to

affect the long term

prospects of the market.

The stress therefore

should be on a, more orderly growth with the

call to Duy tempered by

caution. ;

The market shouldhave time to consolidate.;

In this respect

yesterday's adjustment

downwards turned out to

be a well deserved

breather for the bulls. No

doubt the Singapore

; Stock Exchange's recent

call to member firms advising them not to allow

their clients further committments until they,

have cleared up all their

outstanding positions

and rumours of margin

trading have injected a

note of qautlon here as

well as across the

causeway, the move

should assit In curbing

any excessive splurte.

Some local stockbrokers, mindly of past

lessons, have already

taken precautionary

measures and are requesting for cash in advance before purchase.

This will not only help lit

their liquidity but also go

some way towards restraining overtrading

and preventing -defaulting.

Fundamentally, the

signs appears to DB still

right for a continued awd

orderly growth^

Malaysia's continuing

healthy economic position, the firm commodity

prices — as reflected in

the steady flow of ertcouraging corporate r€-

suits — are galvanising

factors.

Most market analysts

seem firmly convinced

that the bullish trend is

far from being over. Underlying sentiment remains strong and Indeed

gauging from the prevailing enthusiasm, the

market has some way to

fo yet, so they say. —

USAN THAM.

54
MALAYSIA

MAJOR BREAKTHROUGH IN PALM OIL SEPARATION PROCESS

Kuala Lumpur BUSINESS TIMES in English 7 Sep 78 p 6

[Article by Mack Laing in Manila]

[Text]

RESEARCHERS at the

Univeraiti Sains

Malaysia (USM) have

discovered and patented

a process which promises to expand the booming market for edible

palm oil.

The scientific problems was how to fractionate or separate the

liquid part of the oil,

called the oleln, from the

solid part, the stearin.

Five methods are

known, but one widely-,

used requires adding a

detergent. The products

resulting from this process are not acceptable

in Japan, United States,

Canada, and, until recently, France.

The USM process

avoids using a detergent

and will open these markets to Malaysian palm

oil if the process works

as well on a large scale

as it does in the laboratory.

Development of the

process has moved from

using a hand centrifuge

for separation to a larger

bench machine to a refrigerated centrifuge to

a continuous process

which can handle 80

litres an hour.

Dr Augustine Ong,

USM's dean of chemical

sciences, told Depthnews

Science Service that arrangements for a pilot

plant are now going on

with the German firm,

Westfalia.

The process is simple

and safe, Dr Ong said. It

means adding a two-solvent mix to crystallised

crude ..palm oil, then

whirling this in the centrifuge. Three separate

taps deliver the liquid,

solid and solvent fractions.

Patents for the process have been applied

for in the United States,

United Kingdom and

Japan; the British patent was issued on May

31.

Twelve combinations

of solvents, all acceptable to the food industry, are now known,

Dr Ong said, and one

solvent system has been

studied in great detail.

The process can be used

not only for crude palm

oil, but for refined palm

oil, palm kernel oil,

hydrogenated kernel oil,

tallow, lard, rice bran oil

and even fish oil.

The economic importance of the process

Is that large-scale production should open the

way for Malaysian palm

oil to be used in the exploding deep-frying fastfood industry in developed countries.

Tn? Malaysian Palm

Oil Producers" Associa

tion predicts that 1980,

palm oil production will

be two million tons, compared to 1.4 million tons

In 1977.

Today, Malaysia produces 54 per cent of the

world's palm oil and 67

per cent of all palm oil

exports. In a single

bounce during 1972,

Malaysian palm oil export went up 48 per cent

in volume and 44 per cent

in value.

Discovery of the USM

process is only one part

of a continuing search

for new uses of the oil

palm (Elaeis guineens),

which was first brought

to Malaysia in 1870 as an

ornamental plant.

The reddish-brown

colour of palm oil is due

to the presence of

carotenes. These

chemical substances,

also found in carrots, are

needed for the body to

make Vitamin A. And

continued lack of Vitamin A can lead to failing:

eyesight and eventual

blindness. Vitamin A deficiency is widespread in

developing Asian countries, with India and Pakistan being the main examples.

, tP

r 0n.«'s

rouKh calculation shows that if all

the carotenes in

Malaysia's predicted

1980 palm oil production

could be extracted, : enough Vitamin A could

be made to meet the

nutritional demands of

the whole population of India.

The trouble is that the

present refining process

for palm oil destroys the

carotenes.

«, ^ „research already

filed for patent, Dr Ong

and his team have developed a method of extracting the carotenes,

keeping them biologically active, but wtthout

changing the oil product.

This extraction uses

activated carbon derived

from sawdust and rubber wood. The treated

activated carbon removes the carotenes,

which are in turn removed from the carbon.

F

£?di

n

£ experiments with lab animals show

that these carotenes still

55
can produce Vitamin A

in the animal's body.

The solid part of palm

pil is used for cooking

fat, called ghee in many

Asian countries. Processing th>' v#(Kable

lard now^equires addinf

hydrogen gas. This

hydyogenation is costly.

It /also causes a rearrangement of the fat i

molecules which results

In substance« considered

"unnatural" in many

countries.

USM research is now

pursuing methods to

avoid Kydpogenationv

This will make palm oil

cheaper to process than

soybean oil, which also

requires hydrogenation.

Another line of research concerns the

waste, or sludge, coming

from palm oil mills. The

Japanese, in a struggle

to avoid even this minimal pollution at home,

buy only processed palm

oil.

But the USM researchers believe the

sludge itself can be used.

One method-of recovering the waste, called the

Sensor process, produces animal feed, but

the process requires

heavy capitalisation to

set up plants.

USM is now working

with a Malaysian-based

British company

towards using the sludge

for fertiliser. The generation of methane gas

from the sludge is also

possible, but has ao far

been done only on a

small scale.

USM, founded only in

1969, is the second oldest

of Malaysia's five universities. So far, USM

has produced five PhD

students. Two of last

year's four doctorates

were from Dr. Ong's

School of Chemical Sciences. — Depthnews Science Service.

MALAYSIA PALM OIL PRODUCTION, EXPORTS

AND EXPORT EARNINGS

1970-1977

1970 W

DEPTHnewi DEPTHnaws chart: babbot gallardo 1878

CSO: 4220

56
MALAYSIA

NEW ESSO PLATFORMS WILL BOOST OIL PRODUCTION

Kuala Lumpur BUSINESS TIMES in English 1 Sep 78 p 1

[Article by A. Kadir Jasin]

[Text]

MALAYSIA'S crude petroleum production Is expected to increase

further when two more

production platforms

come on stream in the

Esso contract area off

the Trengganu coast later in the year.

Esso in currently producing an average of

i 60,000 barrels a day from

two fields, Tapis and Pulai. Production from

these fields started in

March.

The company is currently completing the

construction of the new

platforms — Tapis B, a

satellite platform, and

Bekok A, a manned platform. They were successfully put in place recently.

Esso sources told

jBu.9irie.ts Times the platforms are being connected to the subsea

pipeline system linking

all the production platforms in the area to a

single anchor leg storage

system.

The sources declined

to say what would eventually be the flow rate of

the various fields. This

would depend very much

on the agreement of

Petronas, the owner of

the resources.

Tapis B is capable of

handling 24 production

wells and will be manned

by crew stationed on Ta- '

pis A. Bekok A is being

puUt on an entirely, new body of crude ana will

have a crew of its own. Jt

can take in 12 wells. .

About four cargo

loads of crude are being

shipped from the production area each month.

They are being shared

between Petronas and

Esso based on their

production-sharing entitlement. The crude is

exported mainly to

Japan and the US West

Coast.

The sources said Essp

would have spent about

US$190 million (MJ360

million) by the end of the

year compared with

US$80 million (about

M»192 million) last year

on exploration and production.

The sum has been approved by Petronas

based on work programme for the year.

The bulk of the allocation

will be spent on the Penisular Malaysian sector.

Meanwhile, production by the company's

single field off the coast

of Sabah has declined

from the peak of 15,000

barrels & day to 10,000-

bj'n-els.

Esso's contract area

is now reduced to 18,000

sq. miles after It relin

quished 2,000 sq. mile«

off the coast of Sabah in

the middle of last year

after completing all exploration activities.

CSO: 4220

57
MALAYSIA

FISHERIES DEVELOPMENT PROGRAM WILL REQUIRE HEAVY INVESTMENT

Kuala Lumpur BUSINESS TIMES in English 2 Sep 78 p 6

[Article by Gil Hamiku]

[Text]

MALAYSIA'S fishing industry could get a new

lease on life when the

South China Sea Fisheries Development Porgram begins to move at

Full steam ahead.

Malaysia's coastbound fishermen are

looking with longing at

the open expanse of the

South China sea, for they

know that there lies their

livelihood.

East Coast fishermen

stand to gain more than

those of Sabah and

Sarawak at the south end

of the South China Sea.

But the programme

should put even these

"eastern provinces"

fishermen ahead of west

coast peninsula fishermen whose operations

are confined to the overfished Malacca Straits.

Straits catches have

been going down by 2.3

per cent a year for 10

years.

The only possibility

for West Coast fisheries

expansion is to move out

of the straits and into the

Indian Ocean. But the,

West Coast's 15,000 fishing boats — about half

the Malaysian fleet —

would have to be heavier

and more seaworhty.

And this means capital,

which the fishermen

don't have and can't get.

Landings in Sabah

and Sarawak have also

decreased. There are

fish to be caught there,

but tfie boats, mostly under 20 tons, can't get out

far enough to get them.

East Coast fishermen

have the same problem.

This is wny the

Malaysian Government

has accepted a proposal

by the Food and Agriculture Organisation of the

United Nations (FAO)

which promises to lift the

present 5.3 millionmetric-ton offshore

catch in the South China

Sea much closer to its

potential annual yield of

8.2 million tons.

Development

This South China Sea

Fisheries Development

Program (Phase II)

calls for a modernised

fleet of 200 vessels of 150

to 200 tons each, with

high-efficiency gear and

cold-storage holds, plus1

three new fishing

harbours with %processing plants.

Malaysia has a tre

mendous demand for

fish and it is growing

every day. Fish prices in

Malaysian markets have

soared for at least 12

I months.

i Fish is the most important animah protein

rood for most

Malaysians. Two-thirds

of Malaysia's 13 million

people live on a riceplus-fish diet.

Fish consumption is

26.6 kilos per person per

year, compared to 14.4

kilos for meat. So, unless

food habits change, fish

will remain Malaysia's

single most suitable protein food.

Good quality fish and

prawns exported to Singapore and Japan

reached the 400,000-ton

mark last year, in spite

of foreign complaints

that prawn packaging is

not up to export standards.

There are 91,000

licensed fishermen in

'Peninsular Malaysia, 60

per cent of them on the

east coast.

I , ,T,he,y

are largely un- ! skilled. Fishing is the

only occupation open to

them. But it is insecure.

At the present level of

| operation, the average

! fisherman's income will

remain at a meagre $600

a year. There are too

many little boats and too

many small-scale fishermen doing too much

inshore fishing where

there are too few fish.

The potential lies in

the offshore grounds of

the South China Sea. But

technology to exploit this

resource needs building

up. That is what FAO

will try to do.

FAO experts are convinced that the South

China sea fish resources

are substantial enough

for significant increases

in total catch, which

could bring more and

less costly fish to the

table.

The experts divide

fish resources into four

groups — pelagic (living

near the surface in open

seas), demersal (living

deep), Crustacea such as

prawns, and molluscs, or

shellfish.

The surface-dwelling

species such as tuna,

mackerel, anchovy,

sardine and herring are

believed sufficient tc

raise the catch by 2.J

million tons a year.

Another annual

600,000 tons of demersal

nsh, ranging from large

fish such as red-snappers and groupers to

small trash fish, is also

believed possible.

The most important

resources are prawns

and crabs. The present

annual catch of nearly'

250,000 tons of prawns

has been at a standsili;

for many years. But the

experts calculate that an

increase of up to 100,000

tons in the yearly crab

catch is not only possible, but likely.

The precise stock of

squids, cuttlefish, octopus and bivalves is not

known; but it is believed

that intensive trawling

and seabed dragging

could increase production considerably.

All in all, FAO^s fish

specialists are convinced
that nearly three million

more tons of fish could

be taken from the South

China Sea without harming the fishing- resources

or causing a chaotic drop

In fish prices.

Capturing this protein

means heavy investment

by the Malaysian Government — in boats and

gear, basic infrastructure, shore support facilities and in building an

efficient marketing system. What this means in

I terms of employment is

yet to be seen.

The intention to train

present fishermen for

these technical Jobs has

run into a snag — how

many fishermen have

the aptitude for such

training? Workers with

wider skills may have to

be called in.

Range

The fishing fleet now

has 30,000 boats, most

with engines under 40

horsepower. Of these, 49

per cent operate on the

west Coast of the p'eninsula, 25 per cent on the

East Coast and 26 per

cent In Sabah and

Sarawak. .

The present fishing

irange is 60 miles. At the

recent Law of the Sea

Iconferences, Malaysia

saw the advantage of

pressing for extension of

her 12-mile territorial

waters to 200 miles. This

would put a lot of rich

fishing grounds within

her exclusive control.

Majuikan (the national Fisheries Development Authority) Is to

build about 200 modern

deep-sea vessels over the

next few years. These

heavy-tonnage boats

would not displace existing fishing craft, but

would supplement them.

To start with, a few

lucky fishermen living

around Majuikan centres and the new fishing

ports of Pahang, one

near Trengganu and one

In Sarawak will be the

first to receive assistance. They would be

given new-style boats

and efficient gear on

very easy financial

terms. . The most productive

gear In terms of catch

per fishing unit are the

trawl, seine, lift and bag

nets. They account for

about 75 per cent of the

country's total catch.

Trawling is particularly developed on the

West Coast and is one

major reason why fishing there has reached

saturation. Majuikan

will invest in these gear!

for its future fishing op-i

eration in the South Chi-i

na Sea, hoping that it will

be many more years

before saturation, since

there is so much more

water to fish.

This new fishing fleet

will be serviced by

modern harbours, for

support facilities are as

.important as boats.1

Large fishing boats will

have the full range ofj

support facilities such asl

cold storage, processing!

plants, marketing complexes, transport and

communication.

These are necessary

to speedily process the

fish on landing. The

I vessels will already have

I sorted and frozen the'

catch. It will cost the

, Government about $30

million to install these

three new-style fishing

harbours at Chendering

(six miles south fo Kuala

Trengganu), Kuantan

and Kuching.

Once in full function,

more fish will find their

way to Malaysian markets to feed a population

growing at three per cent

per year.

According to the estimate of Malaysia's Economic Planning Unit, the

country will require an

increasing catch of about

half a million tons by

1995 to maintain the local

supply of fish protein.

Malaysia needs 10,000

tons of fishmeal a year

for agricultural

purposes. The country

now produces about 4,000

and must import the oth-i

er 6,000. The Govern-;

ment wants to reduce

fishmeal imports.

Landings

| Trash fish landings

will be increased accordingly for reduction to

fishmeal, to supply the

Igrowing pig and poultry

I industries.

Though Malaysia is

not urgently concerned

with exporting fish, the

foreign exchange It generates is welcome. Singapore is,and will remain,

Malaysia's biggest customer for high-quality

fresh fish and Thailand

for low-priced fish. The

export Of prawns and

high-grade fish is expected to increase by

2,000 tons each year until

a total of 100,000 tons is

reached by 1995.

Recently the export

market has swollen, with

exports of frozen prawns

and shrimp to Japan, the

US and Europe. It brings

Malaysia $5.98 million In

| foreign exchange a year.

Disturbed by foreign

complaints, the Government is trying to improve quality control in

ithe prawn-shrimp export

I industry.

Malaysia is also

steadily extending and

improving her coastal

aquaculture.

At present, cockle culture and prawn farming

are already developed in

the coastal stretches of

Perak, Selangor and

Johore along the Straits

of Malacca. A survey has

shown that 150,000 hectares of brackish water

areas in Malaysia are

suitable for aquaculture.

This is considerably

more than the present

355 hectares under cultivation. The prospects

for aquaculture are

I enormous. ;

Fish culture in the

coastal and estuarlne

brackish waters could be

increased to yield an additional 20,000 tons to the

present 30,000 tons a

year. A further 140,000

tons could come from Intensifying cultivation off

Ithe East Coast of the pe-

(ninsula.

In all about 400.000

metric tons a year must

come from aquaculture

in the South China Sea

fishing programme, over

the next 18 years, If

Malaysians are not to be

short of fish. — Depthnews.

CSO: 4220

59
MALAYSIA

COCOA MAY RANK AS MALAYSIA'S THIRD CROP

Kuala Lumpur BUSINESS TIMES in English 2 Sep 78 p 12

[Text]

IF COCOA prices remain

stable around their present levels of £1,800 a ton

and production/sales

targets are met,

Malaysia can expect the

commodity to rank third

in a few years behind

rubber and palm oil as

an export earner.

This assertion is made ,

in a survey of Malaysia

appearing in today's issue of. The Times newspaper; which gives detailed coverage of the

country's development

of cocoa. ■■

The survey points out

that it was as long ago as

194? that a tropical agriculture expert, Professor E. Cheeseman,

forecast that Malaysia

could produce as much

as 100,000 tons a year

(which would rank the

country fifth among

world producers).

With the International

Cocoa Organisation predicting the country's

LONDON, Sept. 1;

1977/78 output at 22,000

tons (against 3,600 tons

in 1970/71), there is

clearly a fair way to go

to reach 100,000 tons.

However, Malaysian officials confidently forecast a 20 to 30 per cent

increase in sales each

year for the next seven to

' 10 year».

Meanwhile, the report

suggests, the Malaysian

government is content to

allow the industry to

grow progressively, and

in keeping with world demand, rather than embark on a crash production programme.

The key may lie with

the farmer (whose production costs are much

less thaii in West Africa)

who can currently assume a profit of at least

£400 a ton and cocoa has

the further attraction of

no export levy on exports

at present, the report

says. — AFP..

CSO: 4220

60
PAKISTAN

PAKISTAN PAPER CONCERNED OVER INDIA'S PURCHASE OF JAGUAR AIRCRAFT

Karachi DAWN in English 10 Oct 78 p 7 BK

[Editorial: "Jaguars for India"]

[Text] The decision of the Indian Government to acquire 200 Jaguar fighterbombers for the Indian Air Force is bound to have a profound impact on the

arms balance in the subcontinent. The decision to acquire these aircraft

is of great significance since it not only means a quantitative expansion

of India's military capacity but also a qualitative change in its weaponry.

The Jaguars are a deep penetration strike aircraft (DPSA), and after months

of wavering the Indian Government has taken a major policy decision to

conclude the $2 billion deal with Britain for the DPSA. The implications

of this decision for the arms race in the region are fully recognised by

Delhi. Hence Mr Jagjivan Ram has tried to shift on Islamabad [words

indistinct] of introducing a new dimension in the arms race by alleging

that the American Government's decision (which has yet to be officially

confirmed) to sell F-5 aircraft to Pakistan had upset the Indian Government

since it threatened to change the military status quo in the subcontinent.

In any case the Jaguar deal confirms the fears expressed in many quarters

that New Delhi plans to continue relentlessly the all-round modernisation

and expansion of its military establishment. These deep-penetration

fighter-bombers will obviously mean a further creation of strength to

India's Air Force, which, with its 600 combat aircraft and 100,000 personnel,

is already a formidable force in excess of India's needs. As the American

ambassador in New Delhi pointed out, the purchases could trigger off a new

arms race in the subcontinent and introduce a higher level of technology

in an area in which India's superiority is already established. The Jaguar

deal must obviously be seen in the context of similar plans for the two

other arms of India's war machine. For the navy, New Delhi hopes to build

submarines within the country, while for its million-strong army, it wants

to phase out its locally-built Vijayanta tanks and replace them with

Soviet T-72s. The foreign purchases, incidentally, are only one source

of arms for India; the other more reliable source is its indigenous

production from the arms and ordnance factories which have made that country

self-sufficient not only in all sorts of light and medium weapons and

61
equipment but even in some heavy and sophisticated arms, such as tanks, ships

and aircrart. The tank factory at Avadi, for instance, has been asked'to

develop an alternative to Vijayanta and manufacture a tank for future needs

The projections for the future are, thus, in line with India's past record

in which every year has been a higher outlay for defence. During the

current fiscal year New Delhi plans to spend $3.57 billion on defence, which

shows an increase of $910 million over the 1975 figure of $2.66 billion.

The acquisition and stockpiling of arms by India, however, is not an issue

that concerns Pakistan alone. India's other neighbours also feel insecure.

In view of the background and historic nature of the Indo-Pakistan

relationship, this country has reasons to be especially concerned over any

Indian arms build-up that may upset the balance of power in the region.

This would affect India's smaller neighbours more adversely since they

would be left with no choice but to divert their limited resources towards

strengthening their defence potential. The current phase of Indo-Pakistan

relationship is characterised by attempts on both sides to normalise ties

While many issues, including that of Kashmir, still remain to be solved

a number of steps taken recently have helped to improve the diplomatic

climate. If no further progress is possible at this stage at least the

two governments must seek to maintain the military status quo, and no steps

should be taken which might create insecurity and tension which are bound

to jeopardise the process of normalisation which began so hopefully after

the Simla accord.

CSO: 4220

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PHILIPPINES

BRIEFS

TWO OIL DISCOVERIES—Manila, 9 Oct—In 5 years of searching for the "elusive

Asian oil belt," the Philippines has made two major oil discoveries and

spent 1.28 billion pesos (about $U.S.183 million). This was reported today

by the official Philippine News Agency (PNA) which said the two discoveries

in northwest Palawan and the Reed Bank confirmed this country lies on the

Asian belt that includes Indonesia and Malaysia.—NAB/AFP [Text]

[Rangoon THE WORKING PEOPLE'S DAILY in English 11 Oct 78 p 2]

CSO: 4220 END

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