Word: suharto
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Compared with the swaggering Sukarno, whom he replaced last year as Indonesia's top man, General Suharto is a cautious and colorless fellow-which is just what Indonesia needs. He rules Indonesia with such quiet modesty and attention to detail that his advisers have been constantly prodding him to make more speeches and exert more power. Last week Suharto showed that he can act as forcefully, if not as flamboyantly, as Sukarno. In what he mildly called "a redressing," he announced his first big Cabinet shakeup, a move that consolidated his own power and clearly reflected his confident control...
Encouraging Atmosphere. Indonesia's main problems are economic, and in that area Suharto has begun to make a major impact. He has assembled the best men available to doctor the economy and given them freedom to act. They have managed to cut inflation, for example, from 600% in 1965 to 60% this year. Suharto is particularly anxious to open the way for more private foreign investment, as well as to create a climate that will encourage other nations to grant loans. Japan's Premier Eisaku Sato, the highest ranking official visitor to Djakarta since Sukarno's downfall...
...cities and district capitals, Chinese may no longer own businesses. Chinese schools have been closed, Chinese organizations ordered disbanded and Chinese papers banned except for two run by the government. "There are too many of them," says Foreign Minister Malik, "so it is impossible to repatriate them." Instead, Suharto has set up a special bureau to deal with the problem, hopes eventually to gain the loyalty of the Chinese...
Indonesia's "serious political provocation" was extending an invitation to a Taiwan trade delegation, after having canceled trade with China last month. General Suharto's government replied by announcing that it would pull the entire Indonesian embassy staff out of Peking and send them on "vacation." Ceylon got a nasty diplomatic note because two Ceylonese M.P.s and a newspaper publisher had visited Taiwan...
...balance such troubles, Sukarno's konfrontasi, the undeclared war that poisoned Indonesia's relations with her neighbors for four years and cost Malaysia and her British allies an estimated $2 billion, was formally ended last week when General Suharto's enlightened government in Djakarta re-established diplomatic relations with Kuala Lumpur. In another tenth birthday present to Malaysia, the Filipinos signed an antismuggling pact to cut illegal trade between Sabah and Mindanao, thereby resolving an ancient territorial dispute...