Obuchi optimistic Asia to become center of growth

Obuchi optimistic Asia to become center of growth

BANGKOK (Reuters): Japanese Prime Minister Keizo Obuchi, in
Thailand on the last leg of a three-nation Southeast Asian visit,
said on Friday he was confident that Asia would be the center of
growth in the 21st century.

Praising efforts taken to promote economic recovery in the
region following the devastating financial crisis that hit in
1997, Obuchi told a news conference: "Through these efforts, I am
confident that in the 21st century, Asia will again become the
center of growth."

He said Japanese aid was starting to bear fruit, but warned
that more efforts must be made, especially to reduce economic
disparities among Asian nations.

"Asia's prosperity and our prosperity are very closely linked.
It is essential that we do everything possible to help." He said
assistance to Asia must continue even though Japan itself is
struggling with a number of economic problems, including a
massive and growing public debt.

In a slap at rising criticism of his fiscal policies, Obuchi
said: "Our policy is correct. We have nothing to apologize for".

Obuchi came to Thailand following visits to Cambodia and Laos,
the first time a Japanese premier has gone to those countries in
decades.

Obuchi promised his Thai counterpart Chuan Leekpai on Thursday
that Tokyo will continue to offer assistance to Thailand to
bolster its recovering economy, aid that includes both measures
to boost Japanese investment in the country and support for human
resources development.

Its investment push will be backed up with visits by
delegations from the Japan External Trade Organization (JETRO)
and the Federation of Economic Organizations, or Keidanren, in
February and March respectively.

In Cambodia and Laos, two of Asia's poorest nations, he
offered substantial assistance aimed primarily at helping the two
catch up economically to the other countries in the 10-nation
Association of Southeast Asian nations (ASEAN).

"We must make our efforts as efficient as possible," Obuchi
told the news conference. He added that he would try to attend
the 10th United Nations Conference on Trade and Development
(UNCTAD) in Bangkok next month.

Japan has touted the visit as a chance to gather the opinions
of ASEAN members prior to hosting the Group of Eight (G-8)
developed nations summit later this year.

Obuchi told the news conference he hoped the summit would
fully reflect Asian interests and send "a bright and strong
message" to the world.

Chuan has asked Obuchi to make a plea for "more harmonious"
policies from international organizations such as the
International Monetary Fund (IMF), and that world trade policies
be fair to both developing and advanced nations.

Critics blamed the IMF for exacerbating the Asian crisis with
its insistence on austere economic policies in return for
financial assistance.

Japan has won widespread support in ASEAN by leading a chorus
of Asian criticism of the IMF's handling of the financial crisis.
It has also provided massive financial support, including the
US$30 billion "Miyazawa Initiative" aid program.

"Japan has given us the inspiration for our recovery efforts,"
Chuan told Obuchi on Thursday.

Obuchi's visit is a signal of Japanese determination to take
on a broader regional role, but whether that will include
political as well as economic leadership remains in doubt.

Observers say Japan is still not strong enough to do both and
that this trip is really aimed at building a wider power base.

Obuchi will have an audience with Thai King Bhumibol Adulyadej
later on Friday and is scheduled to leave Thailand early on
Saturday.