18 APEC leaders to unite to deal with economic crisis

18 APEC leaders to unite to deal with economic crisis

By Meidyatama Suryodiningrat

VANCOUVER, Canada (JP): The 18 leaders of the Asia Pacific
Economic Cooperation (APEC) have expressed commitment to
overcoming together the economic turmoil which has been described
here as a precursor to a possible "Asian meltdown".

United States President Bill Clinton and Secretary of State
Madeleine Albright warned Monday (local time) about the dire
consequences ahead if economies fail to produce sound economic
measures.

"We need to take this very seriously and we have to work very
hard," Clinton said in a different tone to his earlier remarks
when he called the Asian financial crisis "little glitches".

Secretary Albright said the specter of debt and deflation
hovering over the region would slow down growth rates.

"We meet amid predictions that the Asia Miracle will be
succeeded by an Asia Meltdown," Albright said. "In the months
ahead the region's economies must combine the energy of the tiger
with the wisdom of the owl."

She asserted that with the International Monetary Fund (IMF),
the international community must be ready to help nations "that
are doing their best to help themselves".

The leaders of the APEC forum will meet Tuesday (today
Indonesian time) for a one-day annual retreat. The gathering will
issue a document expected to include a commitment to tackle the
crisis and reaffirm support for the Manila Framework which offers
supplementary financing to back up the IMF.

APEC comprises Australia, Brunei, Canada, Chile, China, Hong
Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, the Philippines, South Korea, Singapore, Taiwan, Thailand
and the United States.

The forum seeks to break down trade and investment barriers by
2010 for developing countries and 2020 for developing ones. But
discussions this year have been dominated by the financial crisis
rather than trade liberalization.

The urgency of the situation facing Asia was reflected in the
leaders' separate statements Monday as they filled the day with
bilateral meetings and listened to a report from the APEC
Business Advisory Council.

Newly appointed Thai Prime Minister Chuan Leekpai warned that
no nation is immune to the financial woes sweeping the region.

"Confidence and optimism is out. Uncertainty and gloom are
in," he said. "Economic order has been turned upside down."

Philippines President Fidel Ramos said the turmoil cannot be
waved away by talks.

The situation has been exacerbated in the past few days with
South Korea calling for an IMF bailout and the crash of Yamaichi
Securities, the fourth largest brokerage house in Japan.

These latest developments have created widespread fear that
could result in the catastrophic crash of the Japanese economy.

Confident

U.S. Deputy Secretary of Treasury Larry Summers said he
remained confident about the strength of the Japanese economy,
but said it was important for Tokyo to resolve financial strains
in Japan by addressing troubled financial institutions in a way
that protects depositors.

Summers said that an important panacea for Asian economies
facing the crisis was to come up with a strong domestic response
to create an environment which can attract capital and maintain
confidence.

Officials here have stressed that the funds provided for
countries in crisis are used effectively and that necessary
reforms have been undertaken.

Dan Tarullo, assistant to the U.S. president for international
economic policy, said that in funds negotiations, careful
attention was given to the kind of structural and macroeconomic
policy needed in Indonesia, which has received a US$23 billion
bailout package from the IMF.

"I think there was general confidence that ... stabilization
(would) occur if the conditions were adhered to," Tarullo said
referring to Indonesia.

On Tuesday (today Indonesian time), the leaders will gather at
the Museum of Anthropology to hold closed discussions on APEC's
liberalization process and the financial crisis.

They will pose for the official "family portrait" in aviator
jackets and denim shirts, a Canadian diplomat was quoted by AFP
as saying Monday.

In an effort to lighten up the often tedious debate associated
with such summits and to add a bit of local color, it has become
the tradition of the leaders to wrap up their gatherings dressed
in clothing symbolic of the host country.

The aviator jackets will be emblazoned with a beaver logo,
depicting one of Canada's best-known indigenous animals.

The aviator jackets -- with the name of each leader emblazoned
on it -- and the denim shirts, said the Canadian diplomat, are
designed to reflect Canada's diversity.