China, S. Korea say yes to ASEAN on EAEC, Japan says no

China, S. Korea say yes to ASEAN on EAEC, Japan says no

KUALA LUMPUR (Kyodo): First feelers by ASEAN to gauge support from potential member countries for its proposed East Asia Economic Caucus (EAEC) has drawn warm responses from China and South Korea, but Japan remains negative, according to a confidential report.

The report by the secretary general of the Association of Southeast Asian Nations (ASEAN), Ajit Singh, who visited the three countries in November, described Beijing's support for EAEC as "strong and conditional," with Seoul being "helpful and constructive," while Tokyo was "negative."

"The Japanese reaction was not at all encouraging," the report said, pointing out that Tokyo seemed "overly preoccupied" with the reaction of the United States, which is excluded from EAEC. A copy of the report was obtained by Kyodo News Service.

Although ASEAN leaders endorsed the Malaysia-proposed EAEC in 1992, it has yet to take off chiefly because of Washington's cool stance toward the purely Asian grouping it views as a would-be trading bloc aiming to split the Asia-Pacific region.

ASEAN last October agreed to dispatch Ajit to seek the views of Japan, South Korea, China, Hong Kong and Taiwan on EAEC, which Malaysia hopes will be launched this year. The concept was floated in late 1990 by Malaysian Prime Minister Mahathir Mohamad.

Caution

The report said officials in Japan, South Korea and China cautioned ASEAN to move gradually, with more discussions on defining EAEC's aims before the grouping can be established.

Two main obstacles hampering the birth of EAEC are the U.S. position, which China termed the "key" to its launch, and Beijing's objections to Taiwan and Hong Kong joining as core members, the report said.

ASEAN economic ministers, who discussed the report at their informal retreat in Malaysia last week, said the association will brief the U.S. for the first time on EAEC when the two sides meet in Washington on May 9 and 10 for an annual dialogue.

The report had recommended ASEAN inform the U.S. of the group's EAEC plans as Washington's opinion was sought by officials in all three countries.

Referring to the Japanese position, the report said Deputy Foreign Minister Koichiro Matsuura suggested Australia and New Zealand be included within EAEC since Japan has close trade ties with and relies on them for resources and foodstuffs.

Australia, which originally suggested the 17-member Asia- Pacific Economic Cooperation (APEC) forum in 1989, rejected joining the rival EAEC in unofficial overtures by Japanese Foreign Ministry officials early this year, according to ministry sources.

But Japan, the report added, appeared to be the 'odd man out' since neither China nor South Korea backed the membership of Australia and New Zealand.

ASEAN has ruled out the two countries and the U.S. from EAEC due to "geographic" reasons, but Malaysian officials have privately expressed qualms about Australia, which they see as a surrogate of the U.S. in the region.

The report said Japan fears EAEC may affect the agenda of an already effective ASEAN-Japan annual trade dialogue, and that its potential to undermine APEC needs to be addressed by ASEAN to allay U.S. concern.

An ASEAN official felt Japan was making too many excuses, but said he understood Japan's quandary of not wanting to antagonize Washington further amid the current U.S.-Japan trade dispute stemming from Tokyo's huge trade surplus.