Clinton and Suharto Talk

[The Straight Story]

Clinton and Suharto Talk

Published: February 22, 1998

President Clinton told President Suharto of Indonesia on Friday that it was important for the Indonesian leader to demonstrate his political commitment to economic reform, a White House spokesman said today.

It was Mr. Clinton's second telephone call to Mr. Suharto in a week.

The spokesman did not say whether the two men had discussed an Indonesian plan, which Mr. Suharto now seems to be backing away from, to tie its currency to a strong currency like the dollar. That plan could jeopardize $40 billion in aid from the International Monetary Fund.


http://query.nytimes.com/gst/fullpage.html?res=9C01E0DC1F3FF931A15751C0A96E958260

[scarletwoman]

1. And on May 21, 1998, Suharto resigned. He had displeased his IMF masters.

http://mondediplo.com/1998/06/02chomsky

On May 20 1998 United States Secretary of State Madeleine Albright called upon Indonesia’s President Suharto to resign and provide for "a democratic transition." A few hours later, Mr Suharto transferred formal authority to his hand-picked vice-president. The two events were not simple cause and effect. They do, however, give some indication of the nature of the relations that have evolved over half a century.

Four months earlier, an Australian publication had reported that while "IMF Director Michel Camdessus stood over Suharto with his arms folded in true colonial style, Suharto signed a new IMF agreement." The photo showing the "humbling of Suharto" was "plastered across the local papers" the next day (1). Whatever the circumstances, the symbolism was not missed.

Mr Suharto’s rule relied crucially on US support. He has been a favourite of Western governments and investors since he took power in 1965. To sustain his power and violence, the White House has repeatedly evaded congressional restrictions on military aid and training: Jimmy Carter in 1978, Bill Clinton in 1993 and 1998. The Clinton Administration also suspended review of Indonesia’s appalling labour practices while praising Jakarta for bringing them "into closer conformity with international standards."

Mr Suharto’s recent fall from grace follows a familiar course: Mobutu, Saddam Hussein, Duvalier, Marcos, Somoza, etc. The usual reasons are disobedience or loss of control. In Suharto’s case, both factors operated: his failure to follow IMF orders that were subjecting the population to cruel punishment, then his inability to subdue popular opposition, which made it clear that his usefulness was at an end.

(more at link)