scheme as part of the final stage of the Prices and Incomes Accord, intended to allow for greater flexibility and economies of scale within industrial wage arbitration, although much of this was curtailed by the Howard Government after 1996. Foreign policy Throughout his time as prime minister, Keating took a number of steps to strengthen and develop bilateral links with Australia's closest neighbours; he frequently said that there was no country in the world that was more important to Australia than Indonesia, and undertook his first overseas visit to the country, becoming the first Australian prime minister to do so. Keating made a conscious effort to develop a personal relationship with Indonesian President Suharto, and to include Indonesia in multilateral forums attended by Australia. Keating's friendship with Suharto was criticised by human rights activists supportive of East Timorese independence, and by Nobel Peace Prize winner José Ramos-Horta. The Keating Government's cooperation with the Indonesian military, and the signing of the Timor Gap Treaty, were also strongly criticised by these same groups. It was alleged by some that Keating was overlooking alleged human rights abuses by the Indonesian government as part of his effort to dramatically increase Australia's cultural, diplomatic and economic ties with Asia. Following the creation of the Asia-Pacific Economic Cooperation (APEC) Economic Forum by Bob Hawke, Keating developed the idea further, winning the support in 1993 of recently elected US President Bill Clinton and Chinese Premier Li Peng to expand APEC to a full Leaders' Meeting. This led to APEC becoming one of the most significant high-level international summits, and at the 1994 APEC Leaders' Meeting, hosted by Indonesia, members agreed to the Keating Government's proposals for what became known as the Bogor Declaration, which set targets for a significant increase in free trade and investment between industrialised APEC countries by 2010 and between developing APEC countries by 2020. In December 1993, Keating became involved in a diplomatic incident with Malaysia when he described Prime Minister Mahathir Mohamad as "recalcitrant". The incident occurred after Mahathir refused to attend the 1993 APEC summit. Keating said "APEC is bigger than all of us – Australia, the U.S. and Malaysia, and Dr. Mahathir and any other recalcitrants." The translation of the word "recalcitrant" into Malaysian rendered the word a more egregious insult, and Mahathir demanded an apology from Keating, threatening to reduce diplomatic ties and trade drastically with Australia, which became