ARMS BUILD-UP MAY UPSET ASIA POWER

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Subject: ARMS BUILD-UP MAY UPSET ASIA POWER BALANCE

ARMS BUILD-UP MAY UPSET ASIA POWER BALANCE
27.8.97/THE NATION
REUTER

MANILA - An Asian arms build-up triggered by new-found economic
prosperity could upset the power balance in the region despite US
military presence, an official Philippine study said yesterday.
     
"The US factor in maintaining the regional strategic equilibrium
may not be indefinitely sustained as emerging regional powers could
disturb the balance," the Defence Department paper said.
     
Defence Secretary Renato de Villa submitted the paper to Congress
to support his proposal to increase the defence bud-! get to 50.9
billion pesos for 1998 from this year's 40 billion pesos.

The study said the economic prosperity enjoyed by countries in Asia
had enabled them to upgrade their military capabilities, resulting
in "a sharp increase in defence spending" for modernisation.

Japan, South Korea, Taiwan, India, Australia and China led in the
defence spending, followed by members of the Association of South
East Asian Nations (Asean), it said. Asean groups Indonesia,
Malaysia, Thailand, Singapore, the Philippines, Vietnam, Brunei,
Laos and Burma.

"Increased defence spending, coupled with new nationalist
assertiveness which -economic wealth could set in motion, may prove
to be the critical factors that will contribute to the volatility
of the still evolving regional security situation," the study said. 

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