Megawati calls for terror-free Asia

Indonesia and India enjoy traditionally warm ties

By Rajyasri Rao BBC correspondent in Delhi

Indonesia's President Megawati Sukarnoputri has called for a strong political commitment to make Asia a terror-free zone.

Asia can and must be developed into a terror-free zone by ... imposing fair treatment to all

Indonesian President Megawati Sukarnoputri

The call came at the end of a series of official meetings with Indian leaders including President KR Narayanan and Prime Minister Atal Behari Vajpayee.

Aside from discussing mutual concerns surrounding the US-led "war on terrorism", Mrs Megawati also signed a clutch of economic agreements aimed at reversing the recent downturn in trade between the countries.

India is Megawati's last stop on a four-nation Asian tour which has also comprised China, North and South Korea.

The tour was her third major overseas trip since her election as leader of the world's largest Muslim nation last year.

Deals

During a meeting with Indian business leaders earlier on Wednesday, Megawati called on Indian industry to invest in her country.

Megawati also met opposition leader Sonia Gandhi

She also called for a strengthening of the traditionally close economic ties between India and Indonesia that have suffered since the Asian currency crisis of 1997.

Nine agreements were signed including the supply of palm crushing and milling technology by India in exchange for the supply of palm oil from Indonesia.

The two nations also signed an information technology agreement and a rail deal worth $260m of Indian funding for construction of an Indonesian line.

But Megawati's domestic critics say foreign investment will not flood into the country until the president is better able to control separatist violence across the country's thousands of islands.

The president has also faced criticism recently for not doing enough to stave off US pressure to join Washington's global campaign against terrorism.

Terrorism condemned

At a lecture later in the day to academics, diplomats and politicians, Megawati called on world leaders to reject double standards in tackling terrorism.

"Asia can and must be developed into a terror-free zone by institutionalising and practising tolerance, imposing fair treatment to all and by maintaining democracy," she said.

Although she did not mention any particular country, correspondents say the call is believed to be part of her efforts to fend off criticism at home about the strong US presence in East Asia.

Indian President KR Narayanan joined her in condemning terrorism wherever it occurs and pledged that the current war against terror must eliminate terrorists wherever they may be.

Megawati leaves for home on Friday after a brief stopover in the southern Indian city of Hyderabad.