Japan to help raise imports from SE Asian countries

Japan to help raise imports from SE Asian countries

TOKYO (AFP): Japan will offer measures to raise its imports from currency turmoil-hit Southeast Asian countries by insuring the region's trade transactions with Japanese firms, a news reports said Saturday.

International Trade and Industry Minister Mitsuo Horiuchi will propose the measures on the second day of the economic ministers meeting of the Association of Southeast Asian Nations (ASEAN) to be held for three days from Oct. 16 in Kuala Lumpur, Jiji Press said.

Horiuchi is expected to propose that debt guarantee under his ministry's trade insurance be applied not only to Japanese companies but also to their local partners in joint projects, the news agency said.

Under the proposed scheme Japan will guarantee loans made by ASEAN firms and Japanese companies will be entitled to claim the debt guarantees.

The measures will also include a plan to help Japanese importers make payments in advance, Jiji said.

The Japanese minister will also offer technical cooperation and measures to develop human resources in order to help smaller companies and support industries such as automobile parts makers, it said.

The meeting will be attended by ministers, mostly trade ministers, from ASEAN's nine members, Brunei, Myanmar, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Cambodia would attend as an observer.

Japanese Prime Minister Ryutaro Hashimoto plans to present a comprehensive package of economic assistance to Southeast Asian nations at ASEAN leaders' informal summit in Kuala Lumpur in December, Jiji said.

The package will include a regional currency stabilization fund, following the currency woes triggered by the baht float on July 2.