ASEAN ministers turn eyes to recession-wracked Japan

ASEAN ministers turn eyes to recession-wracked Japan

MANILA (DPA): Southeast Asian foreign ministers bludgeoned by
economic havoc are looking to recession-gripped Japan to
reinvigorate their economies and help cash-strapped governments.

On the eve of the 31st Association of Southeast Asian Nations
(ASEAN) Ministerial Meeting, diplomats viewed developments in the
world's second largest economy as key to determining whether the
region's crisis deepens.

The havoc has taken an even greater dimension with U.S.
Federal Reserve Chairman Alan Greenspan warning troubled Asian
economies could deteriorate further. While describing Japan as "a
crucial engine of Asian economic growth", he said activity so far
has been disappointing.

Against heightened jitters over the slumping yen, a top ASEAN
official said Japan will be asked by the nine-member bloc to give
the "highest priority" to restructuring its financial system,
accelerating the implementation of its fiscal stimulus package
and reforming the tax system.

"ASEAN seeks to be a region unburdened by hunger,
malnutrition, and poverty," said Philippine Foreign Affairs
Secretary Domingo Siazon, who is chairing the meeting today and
tomorrow. He expressed the hope the timetable for fulfilling
these goals will not be jeopardized.

With Singapore assuming the chairmanship next year, Michael
Cheok, director-general of the island-state's delegation, said,
"We have to ensure that the efforts and initiatives of this
organization are sustained and built upon."

Japanese Ambassador to the Philippines Hiroyuki Yushita has
acknowledged foreign assistance disturbusements will eventually
have to be reviewed, but Official Development Assistance grants
are not immediately affected by problems at home.

Japan is ASEAN's largest trading partner and source of
investment, with two-way trade amounting to US$483.2 billion from
1993 to June 1997. ASEAN's imports amounted to $311.1 billion and
exports $172.1 billion.

The Japanese delegation facing their ASEAN counterparts at the
dialog talks next week will not arrive totally empty-handed.
Whether the mission is led by Foreign Minister Keizo Obuchi or a
replacement, ASEAN counterparts from Brunei, Indonesia, Laos,
Malaysia, Myanmar (Burma), Thailand, Singapore, Vietnam and the
Philippines will have their opportunity to voice the necessity of
immediate implementation of reforms.

Meetings will also take place between ASEAN and the other
dialog partners including the United States, China, European
Union, Russia, India, Australia, New Zealand, Canada and South
Korea.

The U.S. delegation accompanying Secretary of State Madeleine
Albright will include a Treasury Department official.

Japan has disclosed plans to elaborate on its readiness to
train 20,000 ASEAN professions during a five-year program aimed
at strengthening medium to long-term competitiveness of ASEAN
industry by fostering human resources.

In accordance with a commitment made last December by then
Prime Minister Hashimoto Ryutaro, Japan also intends to go ahead
with high-level education and training in engineering, natural
sciences and socio-economic management, utilizing Japanese
companies in the region.

Japan and ASEAN have already agreed to cooperate in addressing
market access issues, restructure the industrial sector to
enhance ASEAN's competitiveness and facililitate transfer of
technology.

Heartening for the Philippines was a signing ceremony this
week committing Japan to a $3.75 million grant for road
construction in impoverished western Mindanao.

-- Ruth Youngblood