Japan flexes muscle in Asian financial crisis<\/p>\n
TOKYO (AFP): Japan flexed its economic might in the Asian
\ncrisis yesterday, announcing an emergency meeting to deal with
\nthe turmoil and dispatching a top official to Indonesia to
\ndiscuss financial aid.<\/p>\n
Finance Minister Hiroshi Mitsuzuka told a news conference that
\nvice finance ministers from Asia-Pacific countries would hold an
\nemergency meeting in mid-November to discuss stabilizing the
\nrocky financial markets.<\/p>\n
\"We plan to hold a vice-ministerial level meeting and discuss
\nvarious issues\" including the establishment of a so-called Asian
\nfund, Mitsuzuka said, without giving an exact time or place for
\nthe talks.<\/p>\n
Participants at the talks will include vice ministers from the
\nAssociation of Southeast Asian Nations (ASEAN) as well as high-
\nranking representatives from Japan, Hong Kong and the United
\nStates.<\/p>\n
Analysts said Japan's initiative was inevitable. Asia's
\nfinancial crisis was triggered by the collapse of Thailand's
\nbaht, whose value has been slashed following its July 2 float.<\/p>\n
\"As the United States did for Mexico three years ago, Japan is
\nexpected to play a major role in any regional financial scheme,\"
\nsaid Taiki Saito, a senior analyst at Yamaichi Research
\nInstitute.<\/p>\n
\"Without Japan, any financial framework is unlikely,\" Saito
\nadded.<\/p>\n
Japan has a critical stake in such aid since its economy is
\ndeeply involved in Asia through trade and finance, the analyst
\nsaid. \"Once the region falls, Tokyo cannot avoid tumbling.\"
\nJapanese exports to Asia jumped 10 percent to 1.804 trillion yen
\n(15 billion dollars) in September, accounting for 41 percent of
\nits overall shipments.<\/p>\n
Imports from Asian countries to Japan meanwhile rose 6.8
\npercent to 1.274 trillion yen, equivalent to 38 percent of the
\ncountry's imports.<\/p>\n
Analysts said Japan was being urged to speed up discussions on
\nthe framework of the planned Asian monetary fund to deal with
\nfuture regional financial turmoil.<\/p>\n
Japan and Southeast Asian countries proposed establishing the
\nfund during September's conference of the International Monetary
\nFund (IMF) and the World Bank in Hong Kong.<\/p>\n
But the IMF has warned against the proposed Asian bailout
\nfund, saying it could undercut conditions attached to its
\neconomic assistance.<\/p>\n
Mitsuzuka's announcement coincided with the departure of vice
\nfinance minister Eisuke Sakakibara for Indonesia on Friday to
\nhold talks with his Indonesian counterpart over Japanese
\nfinancial help for the country.<\/p>\n
Sakakibara, dubbed Mr. Yen for his influence over foreign
\nexchange markets, may also talk in Jakarta to officials of the
\nIMF which is drawing up a rescue package for Indonesia following
\na sharp fall in the rupiah, the official said.<\/p>\n
Japanese Prime Minister Ryutaro Hashimoto offered financial
\naid to Indonesia as part of an IMF rescue package when he
\ntelephoned Indonesian President Soeharto on Wednesday.<\/p>\n
Australian Prime Minister John Howard also said this week his
\ncountry would provide aid to Indonesia within the IMF program.
\nJapan pledged four billion dollars to an IMF-brokered US$17.2
\nbillion rescue package for Thailand after the baht collapsed in
\nJuly, but with strict conditions on economic reform.<\/p>\n
Furthering its role in the region, Tokyo plans to call on
\nAsian partners to set up their own version of the Group of Seven
\n(G-7) meetings to defend their currencies, news reports said.
\nTalks involving finance ministers and central bankers would be
\nheld between Japan, South Korea, China, Australia, New Zealand
\nand ASEAN members -- Brunei, Indonesia, Laos, Malaysia, Myanmar,
\nthe Philippines, Singapore, Thailand and Vietnam.<\/p>\n
News reports said the Asian finance leaders would hold their
\nfirst formal meeting next year and planned three to four meetings
\nannually, but may face opposition from the United States.<\/p>",
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