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)