Asian Nations Back Currency Plan
By PATRICK McDOWELL, Associated Press Writer
CHIANG MAI, Thailand (AP) - The United States on Sunday cautiously welcomed a landmark currency cooperation agreement between 13 East Asian nations to fight future economic crises.
Washington shot down more ambitious proposals by Japan in 1997 to create an Asian monetary fund to bail out regional economies collapsing under the financial meltdowns that hit one nation after another.
The United States at the time felt an Asian fund would rival the Washington-based International Monetary Fund's ability to deal with economic crises. But the IMF's admitted mishandling of the Asian crisis, which made the recession deeper than it needed to be, kept the dream of an Asian-led plan alive.
On Sunday, the top U.S. official at the annual meeting of the Asian Development Bank reacted positively to Saturday's deal between the East Asian nations to a swap plan to protect each other's currencies in times of crisis.
Edwin M. Truman, the Treasury Department's assistant secretary for international affairs, told a news conference that Washington supported the idea in general but was awaiting the details.
``We have long supported regional cooperation, in this region and others,'' Truman said. ``We think this is a fine idea. But the nature of financial arrangements depends on the details.''
The so-called Chiang Mai Initiative, named for this northern Thai city, brings together the 10 members of the Association of Southeast Asian Nations plus Japan, China and South Korea in a pledge to rescue currencies in case of speculative attacks or other problems.
The groups will need to work out details such as the amount of money and whether fixed exchange-rate bands will be involved.
The mechanism would revolve around currency swaps, which in theory could allow the financial authorities of troubled countries to gain access to the reserves of allies to use in buying up their own currencies - and keeping up exchange rates.
Kiichi Miyazawa, the Japanese finance minister, said Sunday that the monetary cooperation would lead to a stronger region. The result would be ``improving regulatory frameworks and accounting systems to ensure greater transparency,'' he said.
The currency-swap scheme builds on a plan adopted two months ago by ASEAN finance ministers and expands it to the Northeast Asian powers, part of a vague but continued drive to give Asia more clout on the global stage against the North American Free Trade Agreement and European Union.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
About 4,000 marched to the hotel where bank officials held their annual meeting Sunday, pushing against outnumbered police before they were allowed greater access to the area. Many were protesting the bank's funding support of a mammoth wastewater treatment plant outside Bangkok, the capital.
Sunday, May 7 1:19 PM SGT
Mob tears down barriers, advance ADB venue
CHIANG MAI, Thailand, May 7 (AFP) -
A furious anti-capitalist mob tore through police lines and surged to the entrance of a hotel hosting the Asian Development Bank (ADB) annual meeting here on Sunday.
Around 2,500 chanting protestors crashed through three sets of barricades, past officers vainly lashing out at them with sticks, before massing directly outside the hotel.
Protestors, whipped into a high state of agitation by demonstration leaders in the intense summer heat, were separated from delegates inside only by a line of around 500 riot troops standing in rows three deep.
Police forced to retreat from barricades on the approaches to the hotel were backed up by elite Thai Army border troops armed with shields, sticks and tear gas.
A protest spokesman said a list of demands had been handed to bank officials, and threatened the mob would "do something else" if the answer was unsatisfactory.
ADB vice-President Myoung-Ho Shin told reporters "of course I am concerned about security of governors and government representatives attending this meeting."
Consulatations appeared to be going on as scheduled inside the hotel.
There were no immediate reports of casualties in the riot but several protestors were hauled away by police and a number fainted in the heat.
Some bewildered delegates gathered at the entrance to the building to hear protestors chanting "Who owns this country, who sold this country?" behind the last police line of defence.
Demonstrators claim that ADB policies have exacerbated poverty rather than loosened its grip on Asia -- which is home to 70 percent of the world's poor.
The protest followed clashes between police and demonstrators on Saturday when a crowd of 5,000 activists broke through a police line outside a conference centre where opening ceremonies took place.
The ADB on Saturday rededicated itself to a crusade against poverty and accepted a list of demands from demonstrators.
Governors of the bank were meeting Sunday to discuss poverty alleviation projects and expanding the ADB's soft-loan facility.
Finance ministers from the Association of Southeast Asian Nationsand its powerful neighbours announced a plan Sunday to expand a currency swap arrangement to fight off future financial crises.
Meeting on the sidelines of the ADB talks, the ministers agreed to widen an existing ASEAN swap network to include heavyweights Japan, China and South Korea.
The move could arm nations with billions of dollars to deter speculators and check the spread of currency meltdowns like the one which devastated Asian economies in 1997.
Representatives of a wide coalition of non-governmental organisations met in Chiang Mai ahead of the conference and claimed the bank was corrupt, poorly managed and unable to alleviate poverty.
Security forces were on maximum alert after kidnappings involving Muslim rebels in the Philippines and the seizure of a hospital by Myanmar rebels in Thailand earlier this year.
Bangkok Post - May 7, 2000.
Official rules out unrest by refugees
Public debt likely to reach 60% of
GDP
The deputy governor of Ratchaburi province yesterday
dismissed reports that Burmese students at the Maneeloy holding centre were
planning to slip out and create unrest during the Asian Development Bank
conference in Chiang Mai.
Preecha Ruangchan said during an inspection trip to the centre that all the Burmese students there were being closely watched by Thai authorities and that they were well-disciplined.
Concerning the Karen God's Army rebel group, Mr Preecha said the group's base has been overrun by government soldiers, while strict measures were in place along the border with Burma to prevent illegal crossings.
Bangkok Post - May 7, 2000.
Commentary
Even drug traders deserve fair
trial
Thongbai
Thongpao Laws have been amended to tackle the problem. Heavier penalties are now
imposed on drug-related offenders. Those who possess, trade or export drugs now
face life imprisonment or even execution. Assets of drug traffickers can be seized by the state. Suspects are refused
bail or parole once convicted. But the trade continues to flourish. Therefore,
some officers have resorted to extra-judicial killings. Suspects are either shot
dead during "an exchange of gunfire" or "by anonymous gunmen."In the latter
case, police always assume that the dead person was killed for personal reasons
and must have himself committed some kind of crime. Investigations are
superficial and cases are quickly "closed" leaving relatives with no way of
proving the victim's innocence. And yet, while police claim this method is
effective in suppressing the deadly trade, the culprits simply move their
operations into other areas. It all reminds me of how government officials
suppressed communists 30 years ago. While extrajudicial killings surely violate
human rights, the state can legitimately increase penalties for drug-related
offences. However, sometimes such laws may also assume too much. For example, the Narcotics Act stipulates that anyone caught in possession of
20 grammes of an illegal drug is assumed to be trading. If arrested at an
airport, they are assumed to be exporting the drugs. Such presumptions may
contravene Article 11 of the Universal Declaration of Human Rights and Section
33 of the Thai constitution, which assumes innocence and places the burden of
proof on the police. Furthermore, extrajudicial killings, regardless of cause, are in breach of
Sections 233 and 241 of the constitution which stipulate that everyone accused
of a crime is entitled to a proper hearing by an independent and impartial
tribunal. Last week, I was asked by a women's group in Chiang Mai to help two
hilltribesmen. One is a Muser and the other a Karen. Both were arrested on a bus on a charge
of illegal possession of amphetamines and drug dealing. The police accused them of attempting to transport 100,000 tablets to Chiang
Mai, a charge they both denied. One claimed he was travelling to visit his father-in-law who had been
arrested at a police station and that he got on the bus in front of the police
station. The other claimed he was taking his daughter to apply for a place in a school
in the province. Apparently, the suspects were threatened to the point that they considered
suicide. I looked into the facts and visited their homes and families. I also talked
with the suspects and the officials who handled the case. My assistant lawyer, Mayuree Bhakadurong, and I were startled to find that
some hilltribe people are still treated like communists. More often than not,
they are presumed guilty even before a trial begins. Police and Corrections Department officials claim these hilltribesmen are
being allowed to live in the kingdom without being grateful. This kind of
attitude is very dangerous and in clear violation of the law, let alone human
rights principles. To prevent injustices, regulations require that investigations into
amphetamine cases involving 5,000 tablets or more must be undertaken by a panel
consisting of both police officers from the area where the crime was committed
and 3-4 officers from other areas. And certainly investigating officers should
not come to such cases with any prejudices which might cloud their judgment. Bangkok Post - May 7, 2000. Postbag Although the writer in
the Sunday commentary meant well in saying "Burma owes us help with drugs"
contrary to popular belief, Burma owes Thailand nothing. The reason being that
our Foreign Ministry, under the government of Chuan, declared the flexible
engagement policy. Now it is as though the engagement were called off but we
have still proceeded with the wedding ceremony even knowing that the bride and
groom will eventually divorce. Then they continue on for the sake of the
parents. This is exactly the predicament the Foreign ministry is facing. Do we lose
face or continue to use the buffalo strategy, hoping no one will notice that we
failed. Face the facts. The policy has long been bankrupt and the advisory panel
of outsiders and national security men are at a loss for words, let alone a
strategy. So much for the Phd's and Masters degrees. Real life calls for real
solutions! And anyone who believes trade is better than national security please
resign your post. Did Burma win? Absolutely, with out a doubt and they continue to win as the
junta's coffers fill up from drug sales. This is just one of the many failures that the democrats cannot face which
are eating at the fabric of Thai society. While Chuan pretends that he is a
friend of the people, his ministers follow him down the path of painting
beautiful pictures. What picture of death is so beautiful Khun Chuan? Narong The Nation - May 7, 2000
Asean cancels signing of key pact
CHIANG MAI – The 10member Asean grouping yesterday
cancelled the planned signing of its goodsintransit agreement.
But despite the lastminute cancellation, a senior Thai government leader
remained optimistic a similar pact among the six Mekong River riparian countries
would be signed next year.
Several senior Asean government officials said Asean finance ministers, who
have converged here for the 33rd annual meeting of the Asian Development Bank,
had to cancel the signing ceremony because Malaysia said it was not ready.
Late last night it remained unclear what prompted Kuala Lumpur to back down.
The agreement about goods in transit was intended to facilitate and smooth
the regional flow of goods under the Asean Free Trade Area (Afta) agreement.
As part of Afta, which began in 1992, the six original Asean members have
agreed to reduce tariffs to levels between zero and 5 per cent on most
manufactured products and agricultural goods by 2003.
By the end of this year those six countries must also complete the same
tariff reductions on 15 categories of goods flagged for fast tracking.
Malaysia’s decision to withdraw automobile products from the Asean fasttrack
list prompted Thailand to threaten a similar withdrawal of some of its products.
Noncompliance in meeting their fasttrack obligations by several Asean members
prompted widespread concern that Afta might collapse.
According to Thai Deputy Prime Minister Supachai Panitchpakdi, there were
still “some sensitive elements” that had yet to be sorted out in the nine
protocols accompanying the draft agreement on goods in transit.
He said it was only a matter of time until the 10 members signed the
agreement.
With Afta hitting another snag, Supachai predicted the draft “Framework for
the Facilitation of the CrossBorder Movement of Goods and People in the Greater
Mekong Subregion” would likely be agreed upon before the Asean agreement on
goods in transit.
He was optimistic the Mekong framework would be signed next year and come
into effect shortly after.
The framework responds to the six Mekong countries’ decision to open their
borders to the free movement of goods and people among riparian members.
Last month, four upper Mekong River countries – China, Burma, Laos and
Thailand – signed an historic agreement on commercial navigation.
The pact, which takes effect one year after the signing, allows
transportation along the upper reaches of the 4,200kilometre Mekong River.
Supachai said the Mekong framework had a “more ambitious” goal because it
would allow not only goods but also people “to move freely” among the six
riparian states – China, Burma, Laos, Thailand, Cambodia and Vietnam.
Supachai yesterday highlighted “the useful role” of the Asian Development
Bank in supporting Mekong subregion projects.
“It has helped eliminate suspicion that some projects would benefit only
certain countries,” he said.
As development of the greater Mekong subregion, or GMS, was forging ahead,
Supachai said there were a number of priorities that needed to be addressed. It
was also necessary to create a “Regional Cooperation Fund” to support GMS
projects.
The fund, to be administered by the ADB, would pull resources from GMS
members, donor countries, the private sector and other financing institutions.
He said some western donors or financiers had, for political reasons,
forbidden the use of their finance on projects that would benefit Burma.
Such conditions had prevented or delayed some energy and road infrastructure
projects, he said.
By Yindee Lertcharoenchok
The Nation BBC-Saturday, 6 May,
2000, 18:55 GMT 19:55 UK The agreement was reached between finance ministers from the 10
members of the Association of South East Asian Nations (Asean) and their
counterparts from China, Japan and South Korea.
The deal came on the sidelines of the Asian Development Bank's
annual meeting in northern Thailand.
In a bid to prevent any repetition of the crippling 1997 Asian
currency crises, the "Asean plus three" group agreed to pool part of their hard
currency reserves to defend a currency under speculative attack.
The spread of currency meltdowns in 1997, when foreign investors suddenly
withdrew their money, devastated Asian economies.
The new initiative could arm nations with billions of dollars to deter
speculators.
Protests
The opening of the three-day ADB meeting in Chiang Mai, northern Thailand,
triggered protests by up to 5,000 anti-globalisation activists outside the
conference venue.
Protesters pushed through police barriers to voice their opposition to the
ADB's development policies. There were some minor scuffles, but a massive
contingent of riot police kept the protesters away from the meeting.
Critics accuse the ADB, which has 58 member countries, of adding to poverty
and environmental destruction by funding huge projects like dam construction.
The new "Chiang Mai initiative" will promote the exchange of "consistent and
timely" data on capital flows, according to a statement issued after the "Asean
plus three" meeting.
Ministers said the move would be a first step towards establishing a "well
coordinated economic and financial monitoring system in East Asia".
Expanding currency swaps
"We recognised the need to establish a regional financing arrangement to
supplement the existing international facilities," the statement said.
Asean currently has a five-member swap arrangement covering $200m, and each
party can borrow only $80m for just three months.
Thai Finance Minister Tarrin Nimmanahaeminda said the first step would be to
make Brunei the sixth member of the existing Asean swap agreements.
Then the way would be cleared for bilateral swaps between Asean states and
China, South Korea and Japan.
"The idea is now more or less concrete ... though it is yet to be worked out
in detail," he said.
Asean's secretariat is to work out the details of the scheme.
Some Japanese officials have said they hope it might eventually lead to a
fully-fledged Asian Monetary Fund (AMF).
Japan first proposed an AMF in the wake of the 1997 crisis, but the idea was
rejected by the United States and Europe, which feared it would undermine the
International Monetary Fund.
China upbeat
Welcoming the currency swap plan, Chinese Finance Minister Xiang Huaicheng
said Beijing "is in support of such an initiative to ensure the financial and
economic stability of this region".
Thai Prime Minister Chuan Leekpai said the "East Asian financial crisis will
go down in history as ... a wake-up call for several countries".
"We must not become complacent nor be locked into a false sense of security,"
he said.
Asean groups Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the
Philippines, Singapore, Thailand and Vietnam.
BBC-Saturday, 6 May,
2000, 20:58 GMT 21:58 UK
The meeting will be held in September in Winnipeg, Canada.
Launching the initiative for the United Nations Children's Fund
(Unicef) Mr Mandela and Graca Machel urged world leaders to head a new movement
dedicated to improving the lives of children.
In a BBC interview, Mr Mandela said it was a highly complicated
issue and did not attract enough support.
Unicef estimates that at least 2 million children have been
killed during conflicts over the last decade. A further 6 million have been
seriously injured.
Dogged determination Mr Mandela said world leaders were accountable for the wellbeing of children.
The aim of the summit was to "get specific commitments from these leaders and
specific results". In an interview with the BBC Mr Mandela praised the work of Unicef.
"Unicef is doing a good job, and the rich countries are responding, but not
quite enough. Our job is to accelerate that process," Mr Mandela said.
Education
Ms Machel, the former wife of Mozambican President Samora Machel, said
children were increasingly becoming targets in wars and not just conscripts and
incidental casualties. Education was a vital tool in helping children to heal and overcome their
trauma from war, she said.
Ms Machel is the author of a UN report on the impact of conflict on children.
Government action
Carol Bellamy, Unicef's executive director said government action was vital,
but on its own was not enough.
"We believe that a sweeping and empowering movement can be created by forming
a global partnership between the private sector and those already looking for
change - non-governmental organisations, philanthropies, governments, and the
vast constituencies to be found among the poor and the young," Ms Bellamy
said.
Despite tougher penalties against
drug traders and traffickers, cracking down on amphetamines is a big burden for
police and military officers.
Burma policy a manifest failure
"We intend to press the point that leaders everywhere at every
level are accountable, and, as such, must exercise their responsibility to use
their position and their power to lead," Ms Machel said.