ASEAN, Japan agree to help repair Indochinese economies

ASEAN, Japan agree to help repair Indochinese economies

CHIANG MAI, Thailand (AFP): The ASEAN nations and Japan agreed here Saturday to form a joint committee that will seek ways to help repair the war-shattered economies of Cambodia, Laos and Vietnam.

The two sides said in a statement that the working group on Economic Cooperation in Indochina would have two people from each member of the Association of Southeast Asian Nations (ASEAN) and Japan.

It would "work on possible programs to Cambodia, Laos and Vietnam," said the statement issued in this northern Thai city after the third meeting between Japan's trade minister and economic ministers from ASEAN members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

Thai Deputy Prime Minister Supachai Panitchpakdi told reporters that while they wanted to concentrate first on helping the three Indochina countries, the program would assist Myanmar later on.

Ryutaro Hashimoto, Japan's minister of international trade and industry (MITI), commended ASEAN for speeding up and expanding its tariff reduction program, while the ASEAN ministers urged Japan to open its market further.

The ASEAN ministers "stressed the importance of improved access to the Japanese market especially for manufactured goods, and the need to address the growing trade deficit with Japan, especially in the context of trade liberalization and deregulation."

Hashimoto said Japan was ready to actively use its foreign investment insurance program to promote Japanese investment in the ASEAN countries and elsewhere, and would help set up such programs in the ASEAN nations by extending re-insurance coverage and providing training.

Asked about the ongoing U.S.-Japan trade talks and Washington's threat of sanctions if an agreement is not reached by Sept. 30, Hashimoto would say only that "we are making a maximum effort to reach an agreement as soon as we can."

He refused to say what Japan would do if the United States imposed sanctions or comment on what effect any sanctions might have. But he emphasized that Japan would not compromise its basic principles.

APEC

Hashimoto also defended the fledgling Asia Pacific Economic Cooperation (APEC) forum over which the ASEAN ministers appear badly divided.

APEC, which held its first summit last year in Seattle, groups the ASEAN nations with Australia, Canada, China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, South Korea, Taiwan and the United States.

Chile is to formally join the group in November.

Hashimoto said the group's summit this November in Indonesia "is an important opportunity for determining a new direction for APEC," which "needs to vigorously pursue its activities."

Asked how Japan views the second report by APEC's advisory Eminent Persons Group (EPG) calling for freer trade within the region, Hashimoto said "basically we are able to accept the EPG report."

ASEAN's economic ministers failed to agree on a common stand on APEC at their meeting here this week and called for abolishing the EPG.

Malaysia in particular is wary of a strengthened APEC and is pushing for a smaller East Asian Economic Caucus that would exclude the United States.