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DATE=3/9/2000 TYPE=CORRESPONDENT REPORT TITLE=INDONESIA - MALAYSIA (L-ONLY) NUMBER=2-260004 BYLINE=PATRICIA NUNAN DATELINE=JAKARTA CONTENT= VOICED AT: INTRO: Malaysian Prime Minister Mahathir Mohammed is in the Indonesian capital for talks with President Abdurrahman Wahid aimed at helping pull Indonesia out of its economic crisis. As Patricia Nunan reports from Jakarta, the two leaders also discussed the calls for independence in Indonesia's northern province of Aceh. TEXT: Prime Minister Mahathir Mohammed says Malaysia has already begun to play the role of a mediator between the Indonesian government and separatists from the northern province of Aceh. Dr. Mahathir also said that he has told Acehnese religious leaders that Malaysia opposes the idea of independence for Aceh. ///OPT MAHATHIR ACT /// I have personally met them and explained to them that our stand is that Aceh should remain a part of Indonesia. They may want to have more autonomy. That is up to them to negotiate. But our stand is that Aceh should remain a part of Indonesia. To that extent we have participated to try to bring an end to this process. /// END OPT MAHATHIR ACT /// Dr. Mahathir says Malaysia, if asked, would be willing to take on more responsibility to help end the conflict in Aceh. Indonesia's northern Aceh province is separated from Malaysia by the roughly 300 kilometer-wide Straits of Malacca. But the Indonesian capital Jakarta lies more than one thousand kilometers to the south. Some Acehnese say they feel more of an affinity for Malaysia than they do for Indonesia. Rebels from the "Free Aceh Movement" have been fighting for independence since the 1970's. That push has gained momentum in recent months, with the decision by the Indonesian government to let the territory of East Timor go last October. But the Indonesian military has also renewed its efforts to crack down on the guerilla movement. Amnesty International says more than 200 people have died so far this year in counter-insurgency operations launched by the Armed Forces. Dr. Mahathir is in Indonesia for a one-day visit aimed at improving economic ties between the two countries. Both Indonesia and Malaysia have been affected by Southeast Asia's economic crisis, that began to spread across the region in 1997. Indonesia has been one of the worst-hit by the economic slowdown. /// OPT /// The collapse of its currency and banking system helped force two changes in the government in the past two years - a situation prompting this joke by the Malaysian Prime Minister. ///MAHATHIR ACT/// I think what we have learned from Indonesia is that the world is not a very friendly place. /// END OPT /// ///END ACT/// Indonesia and Malaysia did not reveal whether any new trade agreements were reached between the two powers. But the two leaders signed a memorandum of understanding that leaves the door open for increased trade between the two nations in the future. NEB/PN/FC/PLM 09-Mar-2000 05:05 AM EDT (09-Mar-2000 1005 UTC) NNNN Source: Voice of America .





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