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.