Economic woes to top ASEAN summit agenda

Economic woes to top ASEAN summit agenda

KUALA LUMPUR (AP): Asian leaders, who helped foster rapid growth with a philosophy of cooperation without interference in each other's affairs, are facing some cold, hard realities.

When the heads of the nine-nation Association of Southeast Asian Nations (ASEAN) meet for three days starting tomorrow, it will be against a backdrop of currency crises and stock market turmoil that have swept the region in recent months.

This was supposed to be a celebration of ASEAN's first 30 years, an informal, "commemorative" summit to look back on the progress made and ahead to how to maintain the growing wealth and influence that the countries have amassed.

Instead, with South Korea, Japan and China joining in, they will be aiming to put on a united front to calm the concerns of investors who have suddenly backed off from the "Asian tigers".

More than 1,000 diplomats and other officials are expected from the 12 nations. Many of the same leaders attended the Asia Pacific Economic Cooperation summit in Vancouver just three weeks ago, where the economic flu also headed the agenda.

"Three or four months ago I thought it would drive us apart, that ASEAN nations would adopt more unilateral attitudes and approaches," said Sukhumbhand Paribatra, Thailand's deputy minister of foreign affairs.

"But I was happy to see in Vancouver a reawakening of the ASEAN spirit. I believe this will continue through the upcoming summit. In fact, the economic crisis has brought us closer together."

The question is: How close will that be?

When ASEAN finance ministers, central bank officials and other economic leaders met in Kuala Lumpur two weeks ago, they agreed to set up a surveillance body that would try to act as an early warning system to nip future troubles in the bud.

The leaders will hear a report on that meeting, at which International Monetary Fund head Michel Camdessus urged officials to be more aggressive and less polite in talking with each other.

The IMF has put together multibillion-dollar bailouts in recent months for Thailand, Indonesia and South Korea, but that has only slowed, not halted, the declines in the region's currencies, many of which have lost 40 percent or more of their value since July.

Two sets of meetings will take place outside Kuala Lumpur, the Malaysian capital: the region-wide parlay between the 12 East and Southeast Asian leaders, and talks between ASEAN leaders and China, Japan and South Korea.

No one is talking about specifics or setting expectations for major announcements, although it looks like there will be plenty on the agenda.

"The currency crisis will inevitably be discussed, especially with the leaders of China, Japan and South Korea," ASEAN Secretary-General Ajit Singh said.

Vietnam, one of the largest proponents of ASEAN's noninterference policy, is worried how the regional crisis will affect its non-convertible currency and its exports.

Hanoi says it is drafting a discussion paper on an unspecified subject. It also is interested in ASEAN's role as a counterbalance to Chinese dominance in the region.

Chinese Assistant Foreign Minister Chen Jian said his country was ready to consider unspecified actions to help East and Southeast Asian countries weather their recent economic turmoil.

"China also stands ready to engage in further discussions with ASEAN and other East Asian countries on how to take other actions to ensure financial security and stability," Chen said.

"China is a major country in the Asia-Pacific (region). Its stability and development cannot be achieved without stability and development in the region," he added.

Cambodia is not invited but also will be discussed, said Abdul Kadir Mohamad, secretary-general of Malaysia's Foreign Ministry.

"The committee (on Cambodia), comprising Indonesia, the Philippines and Thailand, will also present recommendations of actions to be taken by ASEAN."

The summit is being held in an area called the Mines, 20 kilometers south of Kuala Lumpur. It is one of the typical developments in Malaysia -- an abandoned tin mine converted into a tourist area with driving greens, a huge exhibition center and shopping mall.

ASEAN groups Indonesia, the Philippines, Singapore, Thailand, Malaysia, Myanmar, Brunei, Laos and Vietnam.