APEC panel unveils Asian self-help measures<\/p>\n
TAIPEI (Reuters): A panel of Asia-Pacific economies proposed
\non Saturday a package of self-help measures for Asia's battered
\neconomies, including issuance of state bonds that would be backed
\nby regional powers and the Asian Development Bank.<\/p>\n
Host Taiwan also pledged its full support for the package,
\nsaying it would back any decision made by the panel.<\/p>\n
\"We have very close trade and investment ties with countries
\nin east Asia. How could we just sit back and not assist,\" Taiwan
\nPremier Vincent Siew said at the opening of the Asia Pacific
\nEconomic Cooperation forum's financial crisis committee meeting.<\/p>\n
Under the bond proposal, countries facing difficulties would
\nraise badly needed capital by issuing government bonds that would
\nbe guaranteed by the Asian Development Bank and by wealthy APEC
\nmembers, including Taiwan.<\/p>\n
\"We will be asking the better-off economies like Singapore,
\nJapan, the United States and Taiwan to support this along with
\nthe Asian Development Bank,\" Jeffrey Koo, chairman of the APEC
\nBusiness Advisory Council's financial committee, said.<\/p>\n
He gave no further details of the bond proposal.<\/p>\n
Koo said seven APEC economies, including Japan and the United
\nStates, also proposed in the panel meeting that Asian states that
\nhad seen big depreciations undertook currency swaps to protect
\ntheir currencies from further declines.<\/p>\n
\"Sometimes in times of large depreciations, such currency
\nswaps should help,\" Koo said.<\/p>\n
He gave no further details.<\/p>\n
A third proposal was that countries facing difficulties formed
\na special ad hoc committee to hold regular consultations about
\ncounter-measures in the financial crisis.<\/p>\n
\"There is a need for frequent contacts among central bank
\ngovernors of finance ministers of the battered economies in the
\nface of the currency turmoil,\" Koo said after the meeting.<\/p>\n
\"And this committee should be able to help address problems in
\na timely fashion.\"<\/p>\n
No decisions on the three proposals were taken and all would
\nbe discussed further at an APEC ministerial meeting in Mexico in
\nlate February, Koo said.<\/p>\n
The meeting was attended by representatives from Japan, the
\nUnited States, Singapore, Hong Kong, Brunei, the Philippines and
\nTaiwan as well as Asian Development Bank officials on the
\nsidelines of an APEC technology forum in Taipei.<\/p>\n
Indonesia had planned to attend but did not, Koo said.<\/p>\n
\"They canceled in the last minutes due to severe financial
\nproblem back home,\" Koo said, brushing aside news reports that
\nChinese pressure was behind the back-off.<\/p>\n
Koo said the meeting took place without any interference or
\nprotest from communist China, an APEC member which has accused
\nrival Taiwan of using its wealth to exploit Asia's financial woes
\nfor political advantage in its rivalry with Beijing.<\/p>\n
Beijing has regarded Taiwan as a renegade province not
\neligible for sovereign contacts since 1949, but has tolerated its
\nmembership in APEC as an economy -- not a country -- under the
\nname Chinese Taipei.<\/p>\n
\"The meeting was amiable and we reached consensus on most
\nissues,\" said Koo, who aside from his APEC duties is chairman of
\nTaiwan's influential Chinatrust Commercial Bank.<\/p>\n
One issue where there was no consensus was a proposal backed
\nby Taiwan and other APEC members to form an Asian fund to act in
\nconcert with the International Monetary Fund in assisting Asian
\ncountries facing financial difficulties, Koo said.<\/p>\n
\"There was no major consensus (on an Asian fund). We'll have
\nto raise this issue again on February 27 in Mexico,\" he said.<\/p>\n
Taiwan had hoped to set up a mechanism to provide funds needed
\nby the countries to fight the turmoil, but some APEC economies
\ndid not support this.<\/p>\n
Seizing the opportunity of Asia's currency turmoil, Taiwan is
\nstriving to boost economic ties with hard-hit Southeast Asian
\nneighbors, all of which recognize only Beijing.<\/p>\n
Despite protests from China, Taiwan's Siew recently made two
\nsurprise visits to the Philippines and Indonesia, offering to
\nexplore ways to help it and other southeast Asian countries out
\nof their financial straits.<\/p>\n
Beijing expressed its displeasure on each occasion, accusing
\nTaiwan of exploiting the Asian financial crisis to further its
\npolitical interests.<\/p>",
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