[Congressional Record (Bound Edition), Volume 145 (1999), Part 15]
[Extensions of Remarks]
[Page 21177]
[From the U.S. Government Publishing Office, www.gpo.gov]



                               EAST TIMOR

                                 ______
                                 

                            HON. KEN BENTSEN

                                of texas

                    in the house of representatives

                      Thursday, September 9, 1999

  Mr. BENTSEN. Mr. Speaker, today I am offering legislation to address 
the troubling events that have been unfolding recently in East Timor. 
On August 30, 1999, the people of East Timor voted by 78 percent for 
independence from Indonesia, which invaded the former Portuguese colony 
in 1975. Since the election, which drew more than 98 percent of the 
territory's registered voters, militia groups backed by sections of the 
Indonesian military and police have engaged in widespread killings, 
arsons, and forced evacuations against the citizens of East Timor. 
These groups have forcibly transported tens of thousands of East Timor 
residents across the Indonesian border and intimated foreign 
journalists, aid workers and election advisers into fleeing the 
territory.
  On Tuesday, Indonesia declared martial law in the territory, but the 
declaration has made little difference. Relief agencies have estimated 
that up to 200,000 people in East Timor have fled to refugee camps in 
other parts of Indonesia, while thousands more have sought refuge 
wherever they could. Among those who fled was Roman Catholic Bishop 
Ximenes Belo, a Nobel Peace Prize winner, who was forced to flee to 
Australia after his home was viciously burned to ground by militia 
members. Yesterday, The United Nations announced it will be withdrawing 
most of its representatives in the East Timor province in order to 
protect the lives of these emissaries. In addition, many of the foreign 
journalists in East Timor have also decided that they must evacuate in 
order to protect their lives. This deteriorating situation is a very 
serious matter which we must address. This campaign of killing, arson 
and forced evacuation has been clearly orchestrated by elements of the 
Indonesian military in a brutal attempt to devastate East Timor. The 
response by the Indonesian security forces, which represent the 
Indonesian government, has been wholly inadequate and stunningly 
indifferent, as these security forces have done nothing to stop the 
violence committed by the militia forces.
  The backlash against the citizens of East Timor is an indication of a 
serious leadership crisis in Indonesia. It is important that, at this 
critical juncture, the response from the United States is both forceful 
and meaningful. The legislation I am introducing today would direct the 
U.S. representative to the International Monetary Fund and the World 
Bank to oppose any new monetary assistance to Indonesia including any 
additional tranches under the 1998 IMF/G-7 package until such time as 
the President certifies that the crisis in East Timor has been 
resolved.
  As a long-time supporter of U.S. participation in the International 
Monetary Fund and the 1998 IMF/G-7 response to the Asian economic 
crisis, I do not believe the U.S. can continue to support assistance to 
a regime which has exhibited, at best, indifference to armed militia 
violence and slaughter following the East Timor plebiscite, and at 
worst complicity in the organized terror. However, I believe that this 
action is necessary to ensure that the Indonesian government take all 
necessary action to end this terror against East Timor's citizens. My 
legislation would apply not only to any future loans from the IMF and 
World Bank to Indonesia, but it would also require that the United 
States oppose additional extensions under existing loans. As a result, 
the United States representative to the IMF would oppose the next $2 
billion tranch of the existing $12 billion IMF loan facility. My 
legislation would also require the United States Executive Director at 
the IMF to veto any future loans to Indonesia until the President 
certifies that the crisis in East Timor has been resolved.
  It is also my understanding the IMF was scheduled to send a mission 
to Indonesia this week, but that it has been delayed in order to 
protect the safety of IMF employees. While IMF's concern for its 
employees safety is laudable, more must be done by way of response to 
this situation. I believe that we must discontinue these loans in order 
to convince the Indonesian government that its campaign of terror 
against the East Timorese will have dire consequences. My legislation 
would permit the IMF to restart these loans once the President of the 
United States has certified that the violence and human rights 
violations in East Timor have ended.
  My legislation would also require our representatives to the World 
Bank to oppose any current or future loans to Indonesia. Last year, as 
part of the 1998 IMF/G-7 financial assistance package, the World Bank 
pledged to provide $5.9 billion in aid to Indonesia. The World Bank is 
scheduled to release $475 million of the $1.375 billion outstanding 
loans during this fourth quarter of this year. My legislation would 
require the U.S. to oppose this disbursement until the Indonesia 
government has acted to peacefully resolve the situation in East Timor.
  As you know, Mr. Speaker, the United States helped to negotiate a $49 
billion restructuring program for Indonesia last year. I was very 
supportive of this package and believe that we should assist foreign 
countries on their paths of economic recovery. However, recent actions 
in Indonesia have forced me to reconsider my support for these 
financial assistance loans. I believe that it is highly regrettable 
that we must take this action, but the government of Indonesia has 
brought this upon themselves.
  Let me also say that while most other nations in the region have 
experienced an economic rebound due in no small part to the IMF/G-7 
participation, Indonesia has continued to lag behind as a result of its 
weak government structure. I do not believe a suspension of the IMF/G-7 
package would pose the same contagious economic elements we experienced 
in January 1998, nor do I believe the U.S. should continue to support 
such a regime until such time as it can guarantee the safety of its own 
people.
  I urge my colleagues to support this legislation and to support the 
efforts of the United States to end the violence and human rights 
abuses occurring in East Timor.

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