ASEAN, Japan reaffirm commitment to IMF bailout

ASEAN, Japan reaffirm commitment to IMF bailout

KUALA LUMPUR (Reuters): Leaders of the nine ASEAN nations and
Japan yesterday reaffirmed their support for IMF bailout schemes
and called for swift implementation of the Manila framework to
restore regional financial stability.

The call was contained in a joint statement following a
meeting between Association of South East Asian Nations (ASEAN)
leaders and Japanese Prime Minister Ryutaro Hashimoto at an
annual ASEAN summit in Kuala Lumpur.

"We support the agreement reached among finance ministers on
the swift implementation of the Manila Framework as a
constructive step towards the promotion of the region's financial
stability," the statement said.

The ASEAN members pledged to conduct structural reforms of
their financial sectors, while Japan promised continued aid
within existing frameworks such as the International Monetary
Fund (IMF), World Bank and the Asian Development Bank (ADB).

ASEAN comprises Brunei, Myanmar, Indonesia, Laos, Malaysia,
the Philippines, Singapore, Thailand and Vietnam.

The annual three-day ASEAN summit ending on Tuesday was also
being attended by Japan, China and South Korea, making it the
biggest-ever meeting of only Asian leaders.

In the joint statement, Japan also offered the bilateral
transfer of technology and exchange of human resources.

It said the nations were confident that ASEAN would continue
to be a dynamic region with strong economic fundamentals and the
potential for continued growth despite the current difficulties.

The ASEAN nations thanked Japan for its contribution to
bailout packages orchestrated by the IMF, which amount to more
than $100 billion for Thailand, Indonesia and South Korea.

The statement also emphasized the need to strengthen the
overall relationships between the ASEAN nations and Japan,
including the need for frequent high-level talks among leaders to
discuss not only the economy but political and security issues.

It welcomed ASEAN endeavors to achieve regional security, and
reconfirmed the need to strengthen cooperation within the ASEAN
Regional Forum (ARF).

The nations also welcomed the progress of, and reconfirmed
continued support for, projects launched by the Korea Energy
Development Organization (KEDO) aimed at promoting the peaceful
use of atomic energy in North Korea.

ASEAN and Japan also pledged to work jointly on global issues
such as preserving the environment, promoting the efficient use
of energy sources, strengthening measures to fight international
terrorism, and strengthening a "south-south" cooperation scheme
to share the experiences of ASEAN development with other
developing nations.

During the meeting, Hashimoto proposed several programs to
support ASEAN attempts to fight the current financial crises and
promote sustainable development.

These included programs to exchange human resources, lower
interest rates on Japanese loans, cooperate in cultivating mid-
sized and other supporting industries of the region, and
establish a Japan-ASEAN round-table to exchange views on regional
development.

It was the first joint statement between ASEAN and Japan since
then-Japanese prime minister Takeo Fukuda visited the region in
1977.