ASEAN ministers vow to boost cooperation

ASEAN ministers vow to boost cooperation

HANOI (AFP): ASEAN finance ministers vowed to work closely to
ensure Southeast Asia's recovery from economic crisis as they
launched two days of talks here on Friday.

Vietnamese Prime Minister Phan Van Khai warned that while the
prognosis for the region's economies was optimistic, there were
difficulties ahead.

"There are uncertainties in the future and risk that the
situation might change negatively," he said at the opening of the
two-day meeting of ministers from the Association of Southeast
Asian Nations (ASEAN).

"It is therefore the common task now for us to address and
eliminate these adverse effects so that these economies can be
quickly restored to their growth paths," Khai said.

Khai said cooperation in money and finance, along with a plan
to accelerate tariff cuts in regional trade, "will contribute to
accelerating vigorously the economic recovery of the region as a
whole."

Indonesian Minister of Finance Bambang Subianto said a key to
eliminating such risks was greater financial cooperation.

"Strengthening financial cooperation is undoubtedly important
in encouraging and facilitating the greater movement of capital
and other financial resources within our region," he said.

"There are challenges ahead that we are facing. However, with
stronger solidarity and commitment among us, I believe that we
could overcome the crisis and achieve our common goal in
enhancing the prosperity of our people," he said.

ASEAN finance ministers, at their morning session expressed
concern over external risks threatening the region's recovery
from the economic crisis, ASEAN secretary-general Rodolfo
Severino said.

The ministers were optimistic of progress made by their
economies since the crisis struck in mid-1997, but "they raised
some possibilities that impede recovery like protectionism, the
state of the Japanese economy, the slowing down of the economy of
the United States," he told reporters.

The ministers noted also that the process of "bank reform is
going on rather vigorously given what's happening in Thailand and
Indonesia," he added.

At the opening ceremony, Indonesia handed over the
chairmanship of the ASEAN finance ministers' forum to Vietnam.

Vietnam Finance Minister Nguyen Sinh Hung said the meeting
will focus on strengthening cooperation in finance.

Hung said regional economies stricken by the financial crisis
that broke out in mid-1997 had bottomed out but there was urgent
need for more initiatives.

"The developments in money and finance sector in the region as
well as globally will, however, be extremely complicated that
require bolder and more efficient economic reform measures,
particularly cooperation measures in the money and finance
sector," he said.

Hung said a timetable to implement certain finance-related
decisions made by ASEAN leaders at their last summit here in
December would be discussed.

High on the agenda is a report on the ASEAN Surveillance
Process, which includes an early warning system that will help
avert future economic crises. The process was approved by ASEAN
in February 1998 in Indonesia.

The finance ministers would also consider a common stand in
international forums and the reform of the international
financial architecture, Hung added.

Vice finance chiefs and deputy central bank governors on
Thursday called for measures to combat volatile short-term
capital flows, urging greater financial transparency in the
private sector.

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

The ministers are also scheduled to meet representatives of
international financial institutions to discuss economic
prospects and potential risks to the region's recovery.

Photo -- Page 8