Japan warming to EAEC idea

Japan warming to EAEC idea

KUALA LUMPUR (AFP): Japan's Finance Minister Masayoshi Takemura said here yesterday that Tokyo was warming to the idea of a caucus for East Asians to confer on economic issues affecting the region.

"The Japanese people are increasingly agreeing and supporting the idea of holding talks amongst East Asians on matters relating to the region," a Japanese embassy official quoted Takemura as saying during talks with Malaysian Premier Mahathir Mohamad.

Takemura said Japan appreciated the efforts made by the Association of Southeast Asian Nations (ASEAN) to explain the Mahathir-mooted East Asian Economic Caucus concept to countries which have negative views about it, among them the United States.

Mahathir had in October last year told Japan coolly that the EAEC could succeed even if Japan opted to stay out.

His remarks were seen by analysts as a reflection of growing impatience with delays, largely caused by Japan's indecision for fear of antagonizing the United States, which termed the caucus a budding trade bloc.

ASEAN officials had admitted that the inclusion of Japan as one of the core members was crucial to the success of the EAEC, envisaged by Mahathir in December 1990 as a loose consultative forum for East Asian economies.

The caucus was earlier set to get underway by the end of 1994, grouping Japan, South Korea, China, Hong Kong, and ASEAN countries Malaysia, Brunei, Indonesia, the Philippines, Singapore and Thailand.

During separate talks with Deputy Premier Anwar Ibrahim earlier yesterday, Takemura proposed that Japan and Malaysia jointly host an international conference for financial experts in the East Asian countries.

Malaysia agreed in principle to host the conference in Kuala Lumpur within three months, said the secretary-general of the finance ministry, Clifford Herbert.

Herbert, briefing reporters after the talks between Anwar and Takemura, said Japan wanted to participate actively to help the region in technology and human resource development.

"Japan wants to seek the understanding of the US on the EAEC and see the conference as a positive development towards the EAEC," Herbert said.

On liberalization of the finance sector, Anwar told Takemura that Malaysia, as a developing nation, could not be expected to loosen up at the same pace as the developed world.