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World Socialist
23 July 1999

US and World Bank threaten Indonesia over Timor

By Mike Head

The United States and the World Bank have both threatened Indonesia with=20
diplomatic and financial retaliation if the Jakarta regime continues to=20
support militia attacks on people in East Timor, in the lead-up to next=20
month's scheduled UN-supervised ballot on autonomy or secession. The threats=20
from Washington underscore the critical economic and strategic interests at=20
issue in the former Portuguese colony and throughout the entire Indonesian=20
archipelago.

Stanley Roth, the US Assistant Secretary of State for East Asian and Pacific=20
Affairs, spent two days in Jakarta late last week before touring East Timor=20
for three days=97becoming the most senior US official to visit the island.=20
Speaking in Jakarta after meetings with Indonesian President Habibie and=20
other political figures, Roth warned that if the UN ballot were derailed by=20
security problems, =93that obviously will have consequences and affect=20
relations with a number of countries around the world=97including my own".

As well as talks with Habibie, Defence Minister and armed forces chief,=20
General Wiranto and Foreign Minister Ali Alatas, Roth met opposition leaders=
,=20
including Megawati Sukarnoputri. Roth said he was now confident that she=20
would accept the outcome of the UN ballot, a process that she stridently=20
opposed during the June elections in Indonesia.

Roth also made a point of spending an hour with Xanana Gusmao, the jailed=20
president of the East Timorese independence coalition, the East Timorese=20
National Resistance Council (CNRT). Over the past two years, Roth has held=20
several discussions with Gusmao, who aspires to lead an East Timorese=20
administration under UN supervision.

On arrival in Dili, the East Timorese capital, the next day, Roth reiterated=20
his warning. Accompanied by the US Ambassador to Indonesia, Stapelton Roy,=20
Roth said: =93The United States has been very clear, as have some other=20
countries and UNAMET, in expressing concerns about militia violence and wher=
e=20
they've gotten their support from. I think I made clear yesterday the fact=20
that there was significant evidence that elements of the military have been=20
supporting some of the militia groups, and that that was a large contributio=
n=20
to the lack of security.=94

An even more blunt threat came from the World Bank. Its representative in=20
Indonesia warned on Wednesday that the bank and international donors could=20
cut off funds to Indonesia if the UN ballot were disrupted. =93I certainly=20
understand from a number of donors that they share a strong interest in=20
ensuring that the UN process in Timor proceeds smoothly, and that there is a=20
peaceful election in East Timor,=94 Mark Baird, World Bank country director =
for=20
Indonesia, told a news conference in Jakarta.

Member countries of the Consultative Group for Indonesia are due to meet in=20
Paris on July 27 and 28 to discuss loans for Indonesia. The World Bank said=20
they were expected to pledge $5.5 billion to $6 billion to plug Indonesia's=20
budget gap in the current financial year. =93I'm sure the situation could be=20
different if there was a change in the situation in East Timor, and I'm sure=20
donors will be watching that very closely,=94 Baird said.

While Roth was still in Jakarta last Friday, UN Secretary-General Kofi Annan=20
announced that voter registration would commence that day for the ballot to=20
be held on August 21 or 22. Annan, who had earlier postponed the voting, sai=
d=20
he would again review the situation midway through the three-week=20
registration process. This week he stepped up the pressure on Jakarta,=20
declaring that militias were still posing a fundamental challenge to the vot=
e.

Various other powers have raised the stake in the Timor conflict in recent=20
days, including Portugal, Britain, Japan and Australia.

Portugal's Foreign Minister warned Indonesia not to make the ballot a farce.=20
Senior officials from Lisbon were due to meet Indonesian representatives at=20
the UN this Thursday to discuss the number of Portuguese and Indonesian=20
monitors for the poll and also what would happen after the ballot. Under the=20
UN plan, if the Indonesian autonomy scheme is rejected, East Timor will=20
revert to Portuguese sovereignty, to be governed by a non-elected interim UN=20
administration.

Britain sent a protest to Indonesia on Tuesday about the use of=20
British-supplied war planes in East Timor and continuing violence by=20
pro-Jakarta militias. The Blair government's move followed reports that a=20
British-made Hawk jet belonging to the Indonesian air force swooped over Dil=
i=20
last Thursday in a show of force. The British Labour government has=20
previously refused to halt the supply of 16 Hawk jets to the Indonesian=20
military.

Japan, the largest single provider of aid programs in Indonesia, moved to=20
reinforce its interests in the region. Its foreign minister, Masahiko Komura=
,=20
announced a visit to Indonesia later this month, where he would raise the=20
Timor issue with Habibie.

Not to be left behind, the Howard government in Australia said on Tuesday=20
that Foreign Minister Alexander Downer would visit Indonesia and East Timor=20
on July 30 and 31, becoming the first Australian minister to set foot on the=20
island since it was invaded by Indonesia with Australia's connivance in 1975=
.=20
Downer announced his trip in a speech to the Indonesian Business Forum in=20
Melbourne.


Military preparations

Canberra has also prepared for possible military intervention, under the=20
pretext of protecting Australian diplomatic staff or police serving under UN=20
command. Unnamed military and diplomatic sources told the Melbourne Age this=20
week that Australia's elite Special Air Services (SAS) was on standby in the=20
northern Australian city of Darwin, just 600 kilometres from Dili. Moreover,=20
the sources indicated, the SAS had already been engaged in on-ground=20
reconnaissance in East Timor. Ironically, the sources expressed the hope tha=
t=20
Indonesia might be favourably disposed to SAS personnel entering the island=20
because of past joint training exercises between the SAS and Indonesia's own=20
special forces, Kopassus.

Earlier this month, Prime Minister Howard confirmed that thousands of troops=20
were on alert to move into East Timor, if asked by the UN. The government ha=
s=20
completed the formation of a 3,000-strong Brigade that is on 28-day alert in=20
Darwin, with another Brigade on the same alert in Townsville, also in=20
northern Australia.

This Wednesday, the Indonesian regime responded by accusing Australia of=20
interfering in Indonesia's internal affairs and of seeking to dominate East=20
Timor. =93Australia cannot act as a godfather ... We reject Australian=20
intervention,=94 one of Habibie's advisers, Dewi Fortuna Anwar, told the=20
Jakarta Post.

Anwar also denounced Canberra for the publication in Australian newspapers o=
f=20
an apparently leaked secret Indonesian report canvassing the prospect of a=20
secessionist victory in the UN ballot. The document speaks of Indonesia=20
losing the effort to =93win the hearts of the people=94. It calls for greate=
r=20
Indonesian resources to "empower" the pro-integrationist militias, speaking=20
of the necessity for =93a new injection of strength=94.

The report is dated July 3 and signed by H. R. Garnadi, special assistant to=20
General Feisel Tandjung, who is Co-ordinating Minister of Politics and=20
Security/Internal Political Affairs and a previous armed forces chief.

It describes the militias=97who have killed more than 100 people since=20
January=97as the =93heroes of integration=94. It also forecasts a bloody pay=
back by=20
pro-independence Falintil guerillas if the vote goes against Indonesia. =93I=
n=20
such a case, the Indonesian government will not be able to wash its hands of=20
the problem, if later the integration forces are butchered." This could=20
become the pretext for instigating a bloodbath, as the generals did in=20
Suharto's 1965-66 coup and again following the 1975 Timor invasion.

The Indonesian regime, which is still essentially run by the military, is=20
determined to cling to its rule and substantial business investments in East=20
Timor. This was further demonstrated when General Wiranto and 15 other=20
government ministers=97half of Habibie's cabinet=97visited the island last w=
eek,=20
ostensibly to show their commitment to a fair ballot. Information Minister=20
General Yunus Yosfiah warned Indonesian civil servants working in the=20
territory that they would be sacked if they supported independence. Yosfiah,=20
a former military commander in East Timor, was quoted by the official Antara=20
news agency as saying: =93If a civil servant from the provincial ministry is=20
pro-independence ... that person should be terminated from the civil service=
.=94

Aid agencies report that the militia terror is worsening. They estimate that=20
60,000 people have been forced to flee their homes, which have often been=20
torched or ransacked by pro-integration militias. Most are living in terribl=
e=20
conditions, lacking proper shelter, food, clothing, sanitation and medical=20
services. Malaria, dysentery, TB, diarrhoea, scabies and infected sores=20
caused by malnutrition are rife. Militias have blocked UN-backed relief=20
convoys seeking to deliver food and medicine to refugees.

Another 11,000 refugees are in Dili, unable to return to their villages to=20
register for the ballot. And according to one report, 9,000 refugees have=20
disappeared after fleeing from Liquica, 40 km west of Dili. =93This is a maj=
or=20
hostage crisis,=94 an Australian aid worker said. =93They call them internal=
ly=20
displaced persons but they are hostages to the militias. They have been told=20
that if they vote for independence, they will be killed.=94


Timor leaders woo corporate investors

In the face of this humanitarian catastrophe, the leaders of the secessionis=
t=20
CNRT are urging the Timorese people to remain passive and place their faith=20
in the Western powers and the UN. They are also becoming more open in their=20
support for the US, Portugal and Australia, as well as the transnational=20
corporations that control the huge oil and gas reserves off the Timorese=20
coast.

Speaking to the National Press Club in Canberra on July 13, the CNRT vice=20
president and foreign representative, Nobel Peace Prize laureate Jose=20
Ramos-Horta, reiterated support for the Timor Gap Treaty signed between=20
Indonesia and Australia in 1989 to carve up the underwater riches between=20
them. In the event of independence, East Timor would want a stable investmen=
t=20
and economic regime, he said. =93Australian mining interests in the region=20
shouldn't fear the change of political status of East Timor.=94

Horta extended his assurances to all sectors of the economy. An independent=20
East Timor could be =93relied upon to give the right signals=94 to investors=
. It=20
would look for investment in oil, gas, agriculture and tourism. He also=20
mooted special offers in the sphere of offshore banking, banking secrecy and=20
flag-of-convenience shipping. =93So I believe investors in Singapore, Hong K=
ong=20
or in Australia would have an interest in investing in East Timor.=94 It wou=
ld=20
also use its status as a former Portuguese territory to gain access to=20
European markets. Horta had previously announced the use of the Portuguese=20
currency and, ultimately, the Euro.

In his speech, Horta said pro-independence forces in East Timor would accept=20
autonomy within Indonesia, if that were chosen at the UN ballot, and work=20
with the pro-integration factions to implement it. This amounts to a pledge=20
to share office with the same militia leaders who are killing and terrorisin=
g=20
the Timorese people. Horta also restated the CNRT's desire for a=20
power-sharing transitional government to administer the half island under UN=20
supervision for at least three years in the event of a vote to break away=20
from Indonesia.

Earlier, Horta gave a press conference at the New South Wales state=20
parliament house in Sydney, where he called for the US and the World Bank to=20
apply sanctions against Indonesia if the UN ballot were further postponed.

There is considerable discussion among oil companies about the prospects of=20
fully exploiting Timor's oil and gas wealth under a new government. At an oi=
l=20
industry conference in Darwin late last month, Robert Mollah, the Australian=20
executive director of the Australia-Indonesia joint authority for the Timor=20
Gap, said a feature of the past year had been widespread recognition that th=
e=20
Timor Sea is a major gas/condensate province. He said 27 companies had spent=20
more than half a billion dollars on exploration and development in the zone.=20
The major company was Phillips Petroleum of the US, followed by the Royal=20
Dutch/Shell Group and Australia's Woodside Petroleum. By current industry=20
estimates, the region's known oil reserves are worth $11 billion.

It is this wealth, just a portion of the immense natural resources across=20
Indonesia that excites the interests of the capitalist powers, the Indonesia=
n=20
generals and the aspiring Timorese capitalists, not the plight of the=20
Timorese people.

++++++++++++++++++++++++++++++++++++++++++++++++++++
Didistribusikan tgl. 24 Jul 1999 jam 04:45:23 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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