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...with the Iraq deal, Washington is "cautiously optimistic" over reports that Indonesia has backed down from defying the International Monetary Fundover the "currency board" issue -- but it wants details. "The IMF is waiting to discern exactly what Suharto plans to do," says TIME business correspondent Bruce Van Voorst. "There's a degree of optimism that what could have been the worst confrontation between the IMF and a beneficiary country may have been avoided...

Author: /time Magazine | Title: Has Suharto Backed Down? | 2/23/1998 | See Source »

...international body had been alarmed at Suharto's plan to peg the rupiah to the dollar, which would force up interest rates and bring even greater economic hardship to a nation already in the grip of mounting social turmoil. President Clinton on Friday called Suharto -- for the second time this month -- to urge him to comply with IMF requirements for the $43 billion bailout of Indonesia. "Suharto is sitting on a political volcano," says Van Voorst, "which is why it's not easy for the IMF to simply pull the plug on its promised bailout. The collapse of Indonesia...

Author: /time Magazine | Title: Has Suharto Backed Down? | 2/23/1998 | See Source »

House Republicans are questioning whether to approve an $18 billion U.S. contribution to the Asian bailout following President Suharto's defiance of the International Monetary Fund over currency regulations. But playing hardball with Suharto remains a tough call for Washington, says TIME U.N. correspondent William Dowell. "It's hard to see what Washington can do except withhold money, and that would only make the situation worse in Indonesia," says Dowell. "Suharto is the most important U.S. ally in the region. He was the one who brought Asian leaders into APEC and convinced them to stand up to China...

Author: /time Magazine | Title: Suharto Poses Dilemma for U.S. | 2/19/1998 | See Source »

...succession of the 76-year-old strongman is further cause for anxiety. By appointing the unpopular B. J. Habibie as his vice president, Suharto has set the stage for a power struggle after he leaves office, says Dowell. And investors remember that the last power struggle in Indonesia -- which brought Suharto to power three decades ago -- saw hundreds of thousands killed...

Author: /time Magazine | Title: Suharto Poses Dilemma for U.S. | 2/19/1998 | See Source »

...Better the Devil You Know Suharto may be stirring up trouble in Indonesia -? $18 billion worth of trouble for U.S. taxpayers. But what's the alternative...

Author: /time Magazine | Title: The Front Page | 2/18/1998 | See Source »

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