JAKARTA -- The U.S. has moved to block a lawsuit against Exxon Mobil Corp. for alleged human-rights abuses at its Indonesian natural-gas operations, claiming the court action could hurt relations with Jakarta and undermine the war on terrorism.


The State Department said the action alleging the oil company knew of human- rights abuses by the Indonesian military guarding its facilities in Aceh province "could impair cooperation with the U.S. across the full spectrum of diplomatic initiatives, including counterterrorism."

The International Labor Rights Fund filed the suit with the U.S. district court in Washington last year on behalf of 11 villagers from Aceh who contend that they were victims of murder, torture, kidnapping and rape by the military unit guarding Exxon Mobil's gas field. Exxon Mobil has denied any involvement with alleged abuses.

In a letter to the district court, which was published on the plaintiff's Web Site, the State Department said the lawsuit would "risk a seriously adverse impact on significant interests of the United States, including interests related directly to the ongoing struggle against international terrorism."

The judge, who heard the case in April, isn't bound to act on the State Department's opinion, but observers say it could scuttle the action. Exxon Mobil lawyers asked the State Department to intervene on foreign-policy grounds.

Set Aside Human-Rights Concern

The U.S. intervention is likely to add weight to mounting criticism that Washington is willing to lay aside its commitment to human rights in a bid to strengthen the war on terrorism. Secretary of State Colin Powell ( news - web sites) on a visit to Jakarta last week promised $50 million over the next three years to train Indonesian military and police to help crack down on terrorist groups operating in the country.

Indonesia, the world's most populous Muslim country, is viewed by Washington as a "focal point" on the war against al Qaida, the State Department said.

Critics of the U.S. policy say Indonesia's military, also a major political force in this nascent democracy, has done little to justify a resumption of contacts with Washington. The U.S. banned arms sales to Indonesia in the mid 1990s amid concerns of human-rights abuses under former dictator Suharto ( news - web sites). Congress banned all training of Indonesian troops in 1999 after the military failed to stop the killing of around a thousand East Timorese after that territory voted for independence from Jakarta.

Sixteen members of Congress and two senators sent letters to the State Department in late June warning that "intervention by the State Department in this private litigation would send precisely the wrong message: that the United States supports the climate of impunity for human-rights abuses in Indonesia."

In Aceh, human-rights groups blame the army for regular abuses against civilians. More than 12,000 people, mainly civilians, are estimated to have died in Aceh during the 26-year separatist war. Indonesia has also failed so far to convict any of the 18 military officers, militia and civilians alleged to be responsible for the East Timor ( news - web sites) killings.

The State Department letter also argued the action could hurt U.S. business interests in Indonesia, and discourage foreign investment. Indonesia needs oil revenues, which accounted for 35% of total revenues last year, to keep its economy stable, the letter said.

In a letter to Deputy Secretary of State Richard Armitage, Indonesian ambassador the U.S., Soemadi Brotodiningrat, said the court action "will definitely compromise the serious efforts of the Indonesian government to guarantee the safety of foreign investments, including in particular those from the United States." The ambassador also said in the letter Jakarta was opposed to a U.S. court interference in what they regard as a domestic affair.

But under a U.S. law, foreign citizens are able to use U.S. courts to bring legal action against U.S. companies for alleged violations of international law.

A U.S. judge ordered Unocal Corp. (UCL) earlier this year to stand trial in September for alleged human-rights abuses committed by the government of Burma, the oil giant's joint-venture partner in the development of a gas field.