Dinner kicks off APEC leaders meet

Dinner kicks off APEC leaders meet

JAKARTA (JP): Leaders of the Asia Pacific Economic Cooperation
(APEC) forum gathered at the Jakarta Convention Center yesterday
evening on the eve of their momentous Bogor conference which will
determine the fate of trade liberalization in the region.

The leaders arrived one by one at around 7 p.m. at the main
entrance of the Jakarta Convention Center and walked some 30
meters before being met by the chairman of the forum President
Soeharto, where photographers were given a few minutes to take
snapshots.

During the dinner, the leaders gathered around one table with
Soeharto seated in the middle flanked by President Bill Clinton
on his right and Japanese Prime Minister Tomiichi Murayama to the
left.

"The world will be watching us with a keen and interested
eye," Soeharto cautioned the APEC leaders about the importance of
their meeting today.

"Whatever we decide will inevitably have a profound impact on
the world economy which is becoming increasingly global and
without borders," Soeharto said in his dinner address.

He reaffirmed the urgent need for trade liberalization, saying
"all APEC economies can benefit from freer trade and increased
economic integration".

Though the leaders were all smiles, no doubt the impending
decision of whether or not APEC will adopt a free trade deadline
weighed on their minds.

APEC comprises Australia, Canada, Chile, China, Hong Kong,
Japan, South Korea, Mexico, New Zealand, Papua New Guinea, Taiwan
and the United States, along with members of the Association of
Southeast Asian Nations (ASEAN) -- Malaysia, Thailand, the
Philippines, Brunei, Singapore and Indonesia.

Support

A number of APEC leaders hinted yesterday at the possible
adoption of a deadline for trade liberalization.

In a day filled with a stream of bilateral summits, leaders
separately indicated that their meeting at Bogor Palace today
could adopt Indonesia's reported initiative on a timeframe for
the establishment of free trade in the region.

"So far, I think, there is gathering support for the
declaration," Prime Minister Paul Keating said here yesterday in
reference to the statement to be issued at the end of the summit.

"President Soeharto's draft declaration is a document of great
moment," Keating remarked, adding that during their meetings
yesterday the APEC leaders got a chance to discuss it.

Chilean President Eduardo Frei Ruiz-Tagle also affirmed his
support for the Indonesian-drafted declaration.

"Regarding the Bogor declaration, we have agreed in general
terms with the proposal of President Soeharto," he said.

The timetable for free trade, as recommended by the Eminent
Persons Group, is expected to dominate the agenda of the 16 heads
of government/state and two senior officials from Taiwan and Hong
Kong during today's conference.

Hong Kong's Financial Secretary, Hamish MacLeod, who is
representing his country in Bogor, felt confident that the
deadline would be adopted.

"I very much hope there will be a specific timetable or a
specific target at least by which APEC should achieve free
trade," MacLeod said.

He further added that despite the vocal objections by some
members "you'll find that they're moving towards agreeing a free
trade target".

Clinton said he fully supported President Soeharto's attempt
in Bogor to spearhead APEC into more trade liberalization and to
tear down barriers.

"It is a very significant thing as far as I know , there is no
precedent for it," Clinton told a press conference convened at
the residence of the U.S. ambassador just hours before dinner.

"I had hoped such a thing would occur when I convened the
leaders in Seattle last year but I knew this was something that
would have to be bubble up from the grassroots from the people in
the fast growing economy."

Malaysia

Malaysia and China had earlier expressed objections to the
inclusion of a timetable for free trade in today's expected
declaration.

Responding to questions on Malaysia's stance, Prime Minister
Mahathir Mohamad diplomatically said that each member should be
free to have its own target for trade and investment
liberalization.

"Let them free to determine the trade liberalization
timetable," Mahathir said at the Shangri-La Hotel yesterday.

He argued that all things related to the trade and investment
liberalization timetable will be discussed in Bogor today.

The spokesman for the Chinese delegation, Chen Jian, told
reporters at the Jakarta Convention Center yesterday there should
be a two-track timetable for liberalization.

"I believe there should be differences with respect to the
obligation undertaken by developed and developing countries,"
Jian said, but added that his country generally agreed on the
2020 deadline.

Despite the stated objections and sometimes mixed signs of
support from the two countries, Prime Minister Keating still held
strong optimism about the adoption of the deadline.

"I think Malaysia certainly sees advantages in the developed
countries committing themselves to an earlier date for
liberalization," Keating remarked. (pwn/fhp/pan/kos/mds/emb)