Japan delays decision on EAEC

Japan delays decision on EAEC

KUALA LUMPUR (AFP): Japanese Prime Minister Tomiichi Murayama on Saturday said it was premature for Tokyo to decide whether to join the East Asian Economic Caucus (EAEC), a Malaysian plan that will remain stalled without Asia's trade powerhouse.

Murayama, during two and one-half hours of talks with his Malaysian counterpart Mahathir Mohamad, said he understood the aims of the caucus, but felt the understanding of other countries, including the United States, was vital.

"Mr. Murayama said he understands the concept and appreciates Mahathir's endeavor to explain to President Bill Clinton. But he said the support of other countries, including the United States, should also be sought," said Kishichiro Amae, a Japanese spokesman who briefed reporters after the talks.

"He (Murayama) feels it is too premature for Japan to decide whether to support or become a full member of the EAEC right now and he will continue to study and consider the proposal," Amae said.

The Japanese prime minister flew in late Friday from Hanoi for a three-day visit. Murayama is on the third leg of his four- nation tour of Southeast Asia, which will take him to Singapore on Sunday.

Mahathir explained the EAEC as a loose consultative group for East Asia's fastest-growing economies, and not a trading bloc or an organization designed to counter the Asia-Pacific Economic Cooperation forum, Amae said.

Malaysian Foreign Minister Abdullah Badawi, in a separate briefing, said Mahathir stressed that the EAEC would create a prosperous and ultimately stable region in Southeast Asia.

EAEC proponents come mainly from the Association of Southeast Asian Nations, which groups Malaysia with Brunei, the Philippines, Indonesia, Singapore and Thailand. They have voiced a commitment to an open, multilateral trading system.

Malaysian officials have admitted that Japan's support was crucial for the EAEC to take off.

U.S. opposition to the formation of the caucus triggered an angry reaction in Malaysia, and Japan found itself in a quandary: whether to defy the United States at a sensitive time in their relationship or again appear to bow to humiliating pressure, analysts said.