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.