U.S. emphasizes its support for investment in Asia

U.S. emphasizes its support for investment in Asia

KUALA LUMPUR (AFP): U.S. Secretary of State Warren Christopher met here yesterday with U.S. business people who expressed concerns about investing in Malaysia and Vietnam, Christopher's next stop on his Asian tour.

"The Clinton administration is determined to advance the interests of American exporters and investors, especially in fast-growing markets like Malaysia," promised Christopher, making a 24-visit to Kuala Lumpur.

Some of business people expressed fears that budget cuts under President Bill Clinton could reduce the ability of U.S. offices in Asia to assist trade.

"Japanese embassies are more commercially-oriented," said Roger Bertelson, vice-president of Motorola Malaysia.

He said that in Vietnam, the long U.S. embargo lifted only this year had proved "an obvious disadvantage" to U.S. investors by delaying their entry into the market while French and German competitors moved in.

Sunil Sreenivasan, chief executive of Citibank Malaysia, said among would-be U.S. investors in Vietnam "there is a lot of caution."

"People are not comfortable with the infrastructure" in Vietnam, where communications and power supplies remain uncertain, he said.

The question of granting Malaysia preferential tariffs was touched on only lightly, with Malaysian authorities favoring a gradual approach.

Before flying on to Vietnam today, Christopher was to discuss Bosnia with Prime Minister Mahathir Muhammad and Foreign Minister Abdullah Badawi, and to sign a new extradition treaty.

Christopher reminded the businessmen that Malaysia is the United States' 13th trading partner, with bilateral exchanges worth US$20 billion per year and growing by eight per cent a year.

U.S. companies are Malaysia's biggest source of foreign investment, with interests worth some $9 billion, mainly in the oil, natural gas and electronic components industries.