G-15 leaders retreat to Malaysian resort

G-15 leaders retreat to Malaysian resort

MALACCA, Malaysia (Reuters): Leaders of the Group of 15 (G-15) developing nations drove yesterday to a Malaysian beach resort to debate the bloc's future on the second day of a three-day summit.

Dancers in colorful traditional Malay dress greeted the leaders after they arrived by road from the capital Kuala Lumpur, 150 km to the northwest.

Haze from forest fires in neighboring Indonesia partially obscured the view of the Strait of Malacca from the Riviera Bay Resort.

"The haze is still here but it's not as bad as in previous days," the chief minister of Malacca state, Abu Zahar, said.

Kenya was admitted Monday as the 16th member, joining Algeria, Argentina, Brazil, Chile, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela and Zimbabwe within the seven-year-old group.

The leaders were expected to discuss a joint communique to be released today at the end of the summit.

In a draft communique, the G-15 denounced U.S. unilateral trade measures and demanded greater access to rich countries' markets.

It also rejected efforts by industrialized nations to link labor standards to trade benefits and denies that low wages in developing countries have caused unemployment in rich nations.

The leaders were also expected yesterday to discuss the problem of low attendance at the annual summits.

This year, six heads of state or government participated, and some members would prefer to hold summits either once every two years or at a different time of year.

The possible expansion of the group to increase Asia's participation was also expected to be discussed.

On Monday, the G-15 issued a joint statement expressing deep concern over recent volatility in financial and capital markets, and called for regulations to help avert further crises and make markets more open and transparent.

The leaders were due back in Kuala Lumpur after a tour of the historical center of Malacca city, the capital of the first Malay empire on the peninsula which later fell under the control of Dutch, Portuguese and British colonial powers.

But President Soeharto, Peruvian President Alberto Fujimori and Egyptian President Hosni Mubarak were set to leave the resort earlier than the others to return to the capital, officials said.