December 17, 2003	Wednesday	Shawwal 22, 1424

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ISLAMABAD, Dec 16: Pakistan and Indonesia agreed on Tuesday to work for a free trade pact, cooperate against terrorism and crime, and collaborate in defence production.

A joint statement issued at the conclusion of the three-day state visit of Indonesian President Megawati Soekarnoputri said the two countries would strengthen mechanisms of mutual consultation and cooperation by instituting annual meetings between the foreign ministers.

These meetings will be held alternately in their respective capitals, and there will be working-level consultations between their respective foreign, defence and economic ministries.

The 12-point joint statement was signed by the foreign ministers of the two countries in the presence of Prime Minister Mir Zafarullah Jamali and Indonesian President Megawati Soekarnoputri.

The joint statement underlines cooperation between the two countries in maintaining peace and stability in South East Asia, South Asia and other regions of the world, and promotion and preservation of international security.

It notes: “They (Pakistan and Indonesia) reaffirm their commitment to implement the purposes and principles of the United Nations Charter and to contribute to the strengthening of the peacekeeping and peacemaking role of the United Nations and also to the peaceful settlement of conflicts and disputes.”

The two foreign ministers also signed an MoU on the establishment of a joint ministerial commission which would meet alternately in Islamabad and Jakarta to oversee cooperation in various sectors between the two countries. Additionally, a trade agreement and an MoU on combating international terrorism were also signed.

Earlier, President Megawati Soekarnoputri held talks with Prime Minister Zafarullah Jamali at the Prime Minister’s House.

During the meeting, the two leaders reviewed bilateral relations between Pakistan and Indonesia. Both sides agreed to institute a comprehensive economic partnership and to add further economic and commercial content to their political relations.

Other areas of cooperation that were looked into were industry, communications, energy, banking, health, education, intelligence-sharing and defence.

As the first step to boost bilateral ties, a Pakistani ministerial delegation will visit Indonesia soon.

The statement said Pakistan and Indonesia would establish a preferential tariff agreement and work towards a free trade arrangement. Pakistan has offered to export 100,000 tons of sugar to Indonesia. Pakistan could also export rice, potatoes, dates and citrus fruits to Indonesia.

The Indonesian president expressed support for Pakistan’s membership of the Asean Regional Forum (ARF) as well as Pakistan’s keenness to upgrade its relations with Asean and become a full dialogue partner.

The Indonesian side expressed appreciation for Pakistan’s participation in the preparatory process for the holding of an Asian-African conference in 2005.

Prime Minister Zafarullah Jamali expressed appreciation for President Soekarnoputri’s proposal for empowering moderates in the Islamic world. The situation in South Asia was also discussed.

The prime minister accepted the invitation extended by the Indonesian president to visit Jakarta. The Indonesian president thanked the prime minister for the hospitality extended to her and her delegation.

Prime Minister Zafarullah Jamali also hosted a luncheon in honour of President Megawati Soekarnoputri and members of her entourage on Tuesday.

Following is the text of the joint statement:

“The Government of the Islamic Republic of Pakistan and the Government of the Republic of Indonesia, appreciating the existing excellent bilateral relations between the Islamic Republic of Pakistan and the Republic of Indonesia, which provide a solid foundation for further deepening their close cooperative relations and friendship between the peoples of the two countries, having considered the recent changes in international situation as well as the profound changes in global politics, desirous of further strengthening their close cooperative ties and friendship between their peoples, have agreed as follows:

i) The Islamic Republic of Pakistan and the Republic of Indonesia value highly their mutually beneficial cooperation, which has been strengthening and broadening at the strategic, political, economic and cultural planes.

ii) At the strategic and political levels, both countries shall make every effort to further develop their relations and multi-faceted cooperation for the common benefit of the two countries. In this regard, each side shall be guided by generally accepted principles of international law as well as traditions of friendly relations between their two countries, and furthermore on the basis of mutual respect of national sovereignty, non-interference in each other’s internal affairs and equality as well as on the basis of respect for human rights and democratic principles of each country.

iii) The Islamic Republic of Pakistan and the Republic of Indonesia shall cooperate in maintaining peace and stability in South East Asia, South Asia and other regions of the world, and the promotion and preservation of international security. They reaffirm their commitment to implement the purposes and principles of the United Nations Charter and to contribute to the strengthening of the peacekeeping and peacemaking role of the United Nations and also to the peaceful settlement of conflicts and disputes.

iv) The Islamic Republic of Pakistan and the Republic of Indonesia shall strengthen mechanisms of mutual consultation and cooperation by instituting annual meetings between the foreign ministers, alternately in their respective capitals, as well as working-level consultations between their respective foreign, defence and economic ministries.

v) Both countries shall create close cooperation and take all necessary measures to contribute towards the international effort, in combating organized crime, terrorism, smuggling, economic crimes, illegal weapon trade and other criminal activities, and in this context establish a cooperation between their respective competent authorities by concluding appropriate arrangements.

vi) Both countries shall promote trade, including direct trade, and in this context initiate a consultative process for arriving at preferential/zero tariff arrangements between their countries. These steps should lead gradually towards arriving at a free trade framework agreement.

vii) Agree in principle to promote joint ventures and encourage greater collaboration between the private sectors of the two countries in all fields, especially textiles, leather goods, sportswear, surgical instruments, electronic and automobile industry, food processing, fisheries, agriculture, shipbuilding, infrastructure projects and development of oil and gas sectors.

viii) Explore, develop and conclude arrangements for mutually beneficial cooperation in the fields of information technology and telecommunications.

ix) Increase collaboration in the field of defence and promote closer collaboration between the two countries in the field of defence production.

x) Develop and promote activities and programmes to enhance people-to-people and cultural contacts.

xi) Increase cultural contacts, institute student exchanges, facilitate collaboration among academic institutions and exchange of television and radio programmes.

xii) Promote cooperation in science and technology through sharing of expertise, joint research and development and encouraging and facilitating industrial applications of high technology.