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APEC took a step forward in 1991
TOKYO. Dec 28: With the deadline for the European Community's single market looming, the Asia-Pacific region embraced one form of economic cooperation in 1991 while becoming largely cautious towards another, reports AFI’.
The annual meeting of the Asia Pacific Economic Cooperation (APEC) forum in Seoul in November proved to be a landmark for the group, hatched only two years earlier amid serious reservations in some South-East Asian countries.
After months of work by South Korean diplomats, an acceptable formula for the simultaneous entry of China, Hong Kong and Taiwan was found, boosting the fledgling groups membership from 12 to 15.
Japan and other founding members had seen the absence of the three so-called Chinese economies, as a big
obstacle to APEC's viability, but the decision by Indonesia and Singapore to recognise China along with fading hostility towards Beijing in the wake of the Tiananmen Square crackdown smoothed the way for their entry.
Another breakthrough, according to regional trade officials. was APEC's ability to finally define Itself.
The delegation issued at the Seoul ministerial meeting went well beyond previous statements in Canberra in 1989 and Singapore In 1990, by setting out APEC's objectives. scope, membership criteria, organisation and future role.
This was a very important meeting". Indonesian Foreign Minister All Alatas said at the time, ft brought the APEC process several steps forward.
Progress was also achieved during the year on the seven projects agreed to at the previous meeting, ranging from energy cooperation to labour training. But there were also disappointments.
The hope by some member countries notably Japan, to create a permanent secretariat for the group was rejected by other members although the issue is expected to resurface at next year s ministerial meeting In Bangkok.
As well, Malaysia's proposal for an "East Asian economic grouping' made when the Uruguay Round of talks under the General Agreement on Tariffs and Trade (GATT) ran into a roadblock at the end of 1990 received wide attention in 1991, but If anything proved divisive and now appears In danger of being dropped alto-
gether.
The feeling around here Is that the idea's dead, said.a senior Japanese government official who asked not to be named.
The plan to include most APEC members except the United States. Canada, Australia and New Zealand brought loud objections from Washington. The idea also proved difficult for Japan to support for fear ft would cause even more trade friction with the United States.
Some of Malaysia's five fellow members of the Association of Southeast Asian Nations (ASEAN) were also cautious so the grouping proposal was downgraded to caucus between ministers. The United States still protested.
Japanese government official. seeking lo avoid further
embarrassment, were later quoted as suggesting a compromise. The caucus could exist as a temporary body within APEC which would be eventually phased out.
Mahatheir himself made a private visit to Japan In late December and met with Prime Minister Kiich! Miyazawa, but there were no reports of the controversial proposal being discussed.
ASEAN leaders are meanwhile preparing to give the final verdict on ft at their summit meeting In January.
Officials In Indonesia and the Philippines privately say they are Sceptical because the grouping would overlap with existing forums ASEAN and APEC and might affect relations with western trading partners.
The caution is echoed in
Thailand, where some officials fear Malaysia a leading recipient of Japanese investment to trying to encourage Japan to become a dominant regional force.
Singapore Deputy Prime Minister and Minister of Trade and Industry Lee Hsien Loong sounded a different note, however. T think strategically It to the right idea, he told AFI*.
We think ft will first enhance trade tics amongst us secondly give us a stronger bargaining position when it comes to GATT and other areas like that, and thirdly ensure that we don't get side lined or overtaken as the Americas for NAFTA (the north American free trade area) and the Europeans go for much stronger EC cooperatan.* Ue