Malaysia scolds U.S. for refusing EAEC

Malaysia scolds U.S. for refusing EAEC

KUALA LUMPUR (AFP): Washington was lambasted yesterday by Kuala Lumpur for rejecting the East Asian Economic Caucus even before listening to the views of East Asian nations.

Malaysian Foreign Minister Abdulah Ahmad said the Association of Southeast Asian Nations (ASEAN), which had endorsed the Kuala Lumpur-initiative, would meet East Asian countries soon on the EAEC's formation.

"When all the East Asian countries have stated their views, then the other countries can give their comments," Abdullah said.

ASEAN had planned to invite Hong Kong, South Korea, Taiwan and China as the caucus' core members, officials said.

Singapore Prime Minister Goh Chok Tong had on the weekend asked Malaysia to spearhead ASEAN's bid to get the EAEC off the ground by renewing efforts to woo Japan, whose membership is crucial for a successful take-off.

"Malaysia will have to be the prime moving force of the EAEC since the idea came from (Malaysian Prime Minister) Dr Mahathir Mohamad," Goh was yesterday quoted in local newspapers as saying when on a weekend visit to a dam project in Johore.

Loose forum

Mahathir had initiated the formation of the EAEC in December 1990 as a loose forum for East Asian economies that would exclude Washington, prompting U.S. opposition to the proposal on grounds it was a budding trade bloc.

"It would be to ASEAN's interest to talk to Japan again on the EAEC," Goh said, when asked to respond to recent reports that Washington, under U.S. President Bill Clinton, had rejected the EAEC.

A Kyodo news agency report on June 7 said a U.S. official had informed Japan that the Clinton administration, which was earlier seen as being less hostile than its predecessor towards the caucus, had also rejected the proposal.

Following the reports, Malaysia had vowed to resort to a concerted bid by ASEAN, which groups Malaysia with Singapore, Brunei, Indonesia, the Philippines and Thailand, to thwart Washington's opposition the EAEC.

Goh said ASEAN would have to agree on a position to try to explain to Washington that the EAEC was a caucus of Asians within the Asia-Pacific Economic Cooperation (APEC) forum.

APEC groups ASEAN with the United States and 10 other countries.

"The EAEC is not in conflict with APEC at all. It is consistent with APEC," Goh said.

Malaysian International Trade Minister Rafidah Aziz, commenting on the resignation on the weekend of Japanese Prime Minister Tsutomu Hata, said ASEAN would brief the new Japanese government when it is formed on the workings of the EAEC.