Asia not in arms race, Mahathir says

Asia not in arms race, Mahathir says

KUALA LUMPUR (Reuter): Asian countries have increased weapons
purchases but there is no arms race in the region, Malaysian
Prime Minister Mahathir Mohamad told an international conference
yesterday.

"As governments increase their revenue they have to spend a
certain amount of their revenue on arms," Mahathir said in reply
to a question at the 27th meeting of the Pacific Basin Economic
Council (PBEC) in the Malaysian capital.

"Even if you limit (defense spending) to a certain percentage
of the (gross national product) as in Japan, one percent of their
GNP in 1945 was a very tiny sum but one percent of Japan's GNP
now would be bigger than most Western countries," Mahathir said.

Arms purchases in Asia have escalated over the past several
years. Malaysia, which bought eight F-18 fighter jets last year,
is close to concluding an agreement to buy 18 Russian MiG-29
fighter jets and is also in the market for frigates.

Singapore and Thailand have strengthened their air forces and
Indonesia last year bought 39 naval vessels.

Analysts have attributed the arms build-up in part to the U.S.
withdrawal from its military bases in the Philippines.

Border disputes remain sensitive in Southeast Asia, including
such flashpoints as the potentially oil-rich Spratly islands over
which China, Vietnam, Taiwan, Malaysia, the Philippines and
Brunei lay claim.

Some analysts have estimated the Asia-Pacific arms market will
be worth at least US$100 billion over the next decade.

"As economies in Asia prosper and continue to spend the same
percentage or even less on defense there is bound to be an
increase in the number of purchases," Mahathir said.

"When previously poor countries become rich and they purchase
arms we cannot say that is wrong. We have to take a very
pragmatic view," he said.

Mahathir and Vietnamese Prime Minister Vo Van Kiet said
increased dialog and cooperation between Asia-Pacific countries
was the key to controlling regional conflict.

"Although peace and cooperation for the sake of development is
becoming an overwhelming trend in the region, it does not mean
that everything is calm and smooth everywhere and at all times,"
Kiet said in his address.

"Cooperation is usually coupled with competition. The only way
to control the dangers of conflict is the way of dialogue aimed
at strengthening mutual trust."

Mahathir said regional security issues "cannot be dealt with
the old mind-set of confrontation, power and deterrence" and
called for "cooperative security" in the region.

The PBEC is an association of international business leaders
with a membership of more than 1,000 firms in 17 member
countries, including Japan and the United States.

China, which has sent a delegation of 30 officials
representing major state companies, will be admitted as a member
of what PBEC director-general Robert Lees called "the ultimate
capitalist's club" at this meeting.