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September 7, 1999


East Timor Latest Threat to Habibie

Filed at 2:32 a.m. EDT

By The Associated Press

JAKARTA, Indonesia (AP) -- Hounded by chaos in East Timor, a lost election,
a bank scandal and nervous investors, Indonesia's President B.J. Habibie has
his back to the wall.

His increasingly threatened command makes many wonder about the critical
next two months before the expected transfer of power to populist Megawati
Sukarnoputri's presidency.

In a potentially ominous note, the military promised Thursday not to stage
a coup -- making some people wonder whether a forceful takeover is exactly
what the armed forces have in mind.

It all spells trouble for the slight man with the impish grin who stepped from
the
shadows of his mighty patron, President Suharto, to assume control in
May 1998.

Megawati, whose party won first place in June's parliamentary elections, has
consistently pointed the finger at Habibie for the troubles in East Timor.

``I was hoping that East Timor would still be a part of Indonesia,'' she said
Saturday. ``From the first, I've said that this is Habibie's
responsibility.''

She also has raised fears -- deeply felt in the Indonesian military -- that
the

Aug. 30 vote for independence in East Timor will encourage separatism in
other provinces.

If that were to happen, the Indonesian military could see the need to
intervene

and quell unrest.
Megawati is the favorite to be named president by a special assembly in
November, giving Habibie two critical months guiding this nation of 210
million

people.

``I'm not saying that Habibie should resign from his post as a consequence of
the pro-independence victory in East Timor,'' said Bambang W. Suharto,
a member of the National Commission on Human Rights.

But Habibie has to be ``held accountable'' for the loss of the troubled
province,
said Suharto -- no relation to the ousted president -- in Monday's editions of
the
Jakarta Post.

Last week, parliament took the once-unthinkable step of summoning Habibie to
a hearing over an $80 million bank scandal. Though the lawmakers later backed
down, the World Bank and other lenders are still demanding clear answers.

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