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Burma Related News - October 30, 2001.



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BURMA RELATED NEWS - October 30, 2001.
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HEADLINES
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AFP - Outside forces capture ASEAN in their grip
AFP - Laotian prime minister to visit Singapore
AFP - Uphill struggle for Koizumi to halt Japan's sliding stature at ASEAN summit
Asia Pulse - Asean Army Chiefs to Hold Meeting on Anti-Terrorism in Manila
Bkk Post - China agrees to plans for trade towns
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Tuesday October 30, 11:03 AM
Outside forces capture ASEAN in their grip
 
SINGAPORE, Oct 30 (AFP) - The Association of Southeast Asian Nations (ASEAN), set up to accelerate regional growth, is having its agenda dictated by events beyond its control as leaders of the 10-nation grouping prepare for their annual summit.
 
But handled correctly, the twin impacts of an anaemic global economy and the US-led fight against terrorism, can be turned to ASEAN's advantage and enhance the drive for regional free trade, analysts said.
 
There is no room to revert to protectionist policies at next week's summit in the Brunei capital of Bandar Seri Begawan, they said.
 
"The ASEAN leaders are expected to address immediate concerns to Southeast Asia such as the twin challenges posed by the global economic downturn and the international fight against terrorism," Brunei's foreign ministry said.
 
"In dealing with these concerns, the ASEAN leaders are expected to discuss a wide range of topics such as responding to longer term challenges, accelerating regional integration and bridging the development gap."
 
Critics have written off ASEAN as a "sunset organisation", saying it failed to respond adequately to the Asian financial crisis in 1997 and would be tested again by the new economic slump.
 
ASEAN Secretary-General Rodolfo Severino said the grouping must turn global events to its advantage -- using them as a prop to further tear down tariff walls as regional economies bear the brunt of the global slowdown.
 
"Of course, it has become more urgent because of the developments in the United States," he told AFP.
 
"We need to do more like eliminating tariffs altogether because what we would like to do is to integrate the ASEAN economies. That is the only way we can compete."
 
Although many ASEAN economies are either in recession or on the brink of one, Severino said there was no turning back from tariff reduction.
 
"It's totally illogical to turn protectionist at this point," he said.
 
The ASEAN Free Trade Area (AFTA) covering the group's six original members -- Malaysia, Thailand, Indonesia, Brunei, the Philippines and Singapore -- is on track for implementation in 2003.
 
"AFTA is just about done," said Severino.
 
Newer entries Laos, Cambodia, Myanmar and Vietnam will join between 2006 and 2010.
 
But with the two groups at different stages of economic development and with varying political systems, they have different perspectives of the risks and benefits of economic liberalisation and the free market.
 
From the former group, Malaysia also has reservations about a no-holds-barred free trade pact.
 
Analysts, however, said that with regional economies floundering against the backdrop of the campaign against terrorism, they have to push for increased intra-regional economic cooperation at the first summit since September 11.
 
"Regional economic integration ... that is the key. The process has to be strengthened further," Pradumna Rana, manager of the Asian Development Bank's (ADB) regional economic monitoring, told AFP.
 
"The 911 (September 11) accident has brought in additional uncertainty. We need lots of these regional efforts."
 
A senior ASEAN diplomat, who asked not to be named, said any discussions on trade and economic issues would be linked to the terror attacks in New York and Washington "and how the region can cope."
 
The ADB's Rana said the progress of economic restructuring, an issue that has faded since the region's recovery from the 1997-98 crisis, should also be on the agenda.
 
"It's still incomplete and that should be carried on," he said.
 
The painful reforms are crucial in preparing ASEAN economies for the long haul once the US economy starts moving again, said Rana.
 
The ambitious proposal for a ASEAN-China free trade agreement, first mooted a year ago and aimed at a market of 1.7 billion consumers, will be further discussed in Brunei with added emphasis now that the world's most populous nation is listed to enter the World Trade Organisation on December 10.
 
But, Severino stressed: "The United States cannot be replaced as a major market for ASEAN."
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Tuesday October 30, 11:41 AM
Laotian prime minister to visit Singapore
 
SINGAPORE, Oct 30 (AFP) - Laotian Prime Minister BounNhang Vorachith will arrive here Wednesday for a four-day official visit aimed at strengthening trade and investment ties, Singapore officials said Tuesday.
 
He will be accompanied by Deputy Prime Minister and Foreign Minister Somsavat Lengsavad, senior officials and a business delegation, the foreign ministry said in a statement.
 
Soon after his arrival, BounNhang will deliver a keynote speech to a business seminar on Laos' economy, development plans and investment opportunities.
 
Singapore is ranked 12th among the foreign investors in Laos with an investment value of 21.8 million US dollars.
 
While in the city-state, BounNhang will attend a luncheon with Prime Minister Goh Chok Tong and meet President S.R. Nathan.
 
BounNhang and Goh will attend the Association of Southeast Asian Nations (ASEAN) leaders' summit in Brunei on November 5-6.
 
Laos, Singapore and Brunei are members of ASEAN which also groups Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam.
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Tuesday October 30, 9:26 AM
Uphill struggle for Koizumi to halt Japan's sliding stature at ASEAN summit
 
AFP - Prime Minister Junichiro Koizumi will face a tough task halting the slide in Japan's international standing when he meets ASEAN leaders next week, experts say, particularly as China's stature has increased since the terror attacks.
 
Koizumi is to leave here Sunday for Brunei where leaders of Association of Southeast Asian Nations (ASEAN) meet their three most powerful neighbours -- China, Japan, and South Korea.
 
Historian and author Hideaki Kase said Koizumi "may want to highlight a united front with ASEAN (in supporting the military campaign in Afghanistan) to please the United States."
 
But Indonesia, ASEAN's biggest member and the world's most populous Muslim nation, would be less eager to be seen to be backing the US too strongly, Kase said, adding Malaysia was not in favour of Washington either.
 
With no high-profile role expected from him as a mediator, Koizumi will only figure in the supporting cast at the gathering, all the more so because Japan is no longer able to shield the region from economic woes, Kase said.
 
"Japan used to be a horn of plenty," he said, noting Japanese leaders invariably announced an aid package when attending a major Asian meeting. "But now lacking enough money, Mr Koizumi will not have much influence."
 
When economic crisis ripped through Southeast Asia in 1997, Japan offered a total of 80 billion dollars in aid under the governments of then premiers Ryutaro Hashimoto and Keizo Obuchi.
 
But a government official indicated there was no large aid package in the pipeline this time.
 
"We have not worked out what could be called a Koizumi Package at the moment," he said, while stressing "Japan nontheless hopes to send a warm message, the message that Japan continues to put much importance on ASEAN."
 
Kase said "what ASEAN wants from Japan most is its own economic recovery." "When Japan sneezes, ASEAN catches a cold."
 
"The premier advocates painful reform to achieve long-term growth ... but it also brings pain to ASEAN," Kase said.
 
Kazuro Umezu, professor of international politics at Nagoya Gakuin University, said instead "Asian nations are increasingly looking to China" since the September 11 attacks on the United States and subsequent US-led strikes on Afghanistan.
 
Koizumi, no longer able to engage in checkbook diplomacy because of domestic economic problems, would be "unlikely to score many points" in ASEAN leaders's eyes, Umezu said. "Japan's international standing is gradually sliding."
 
At the APEC summit in Shanghai earlier this month, Beijing managed to win the trust of Indonesia and other largely-Muslim states by not explicitly endorsing the US campaign, Umezu argued.
 
Chinese President Jiang Zemin, the host of the 21-nation gathering, called for restraint even when he emphasized he and US President George W. Bush were committed to working together with the rest of the world to combat terrorism.
 
"We hope that anti-terrorism efforts can have clearly defined targets, and efforts should hit accurately, and also avoid innocent casualties," Jiang said at the time, while also calling for the United Nations to "be brought into full play."
 
On the sidelines of the ASEAN plus Three meeting Monday, Koizumi will hold tri-lateral talks with Chinese and South Korean leaders.
 
Koizumi will also be in an ASEAN plus One meeting, the group's meeting with each of the three partners, on Tuesday.
 
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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Tuesday October 30, 5:37 PM
Asean Army Chiefs to Hold Meeting on Anti-Terrorism in Manila
 
MANILA, Oct 30 Asia Pulse - Chiefs of armies of the Association of Southeast Asian Nations [ASEAN] will hold their second annual meeting here on Nov. 15 to discuss the new threat of terrorism in the region in the wake of the Sept. 11 terrorist attacks in New York and Washington.
 
The day-long conference will be held at the Garden Ballroom EDSA Shangrila Hotel in Mandaluyong City.
 
Army chief Lt. Gen. Jaime S. de los Santos said this year's conference is "ASEAN Armies Evolving Role in Counter Terrorism."
 
The conferees will draw out plans in responding to threats of terrorism in the ASEAN region, de los Santos said.
 
They will also discuss the modes of action to be undertaken by the ASEAN armies within the bounds of fundamental laws as multi-lateral cooperation within the ASEAN context.
 
The meeting will coincide with the holding of the 11th ASEAN Armies Rifle Meet in Fort Bonifacio, Makati City from Nov. 11 to 16.
 
Participants in the friendly shooting competition will be sharpshooters from the armies of ASEAN.
 
Executive Secretary Alberto Romulo will be the guest of honor and speaker at the conference to represent President Gloria Macapagal-Arroyo.
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Bangkok Post - October 30, 2001.
China agrees to plans for trade towns
Sa-nguan Khumrungroj
 
Thailand and China will set up trade towns in a bid to intensify economic co-operation in the Mekong sub-region, officials said.
 
Under the agreement, Chiang Mai would set up an area selling mainly Chinese-made products and Jinghong, in China's Xishuangbanna region, would do the same for Thai products.
 
Rachen Veerapan, chairman of Chiang Mai's Chamber of Commerce, and Dao Xinhua, his counterpart from Xishuangbanna, signed the pact during the annual Joint Economic Quadrangle Committee meeting in Jinghong. Burma and Laos also took part.
 
China's state-run Xinhua news agency said ``Little Thailand town'' would take up a 10-rai area in Jinghong and provide over 200 trade booths selling products from Thailand, Burma and Laos.
 
``China Trade town'' in Chiang Mai would mainly sell Chinese-made products.
 
A delegation from Xishuangbanna, in Yunnan province, would visit Thailand next month to discuss the project.
 
Rattakit Manathat, Foreign Ministry spokesman, said the private-sector agreement marked a major step towards enhancing border trade between the two countries. It would also promote economic prosperity in the Mekong sub-region.
 
``Our government fully supports the idea,'' he said. ``The Thai private sector has to find ways of boosting bilateral trade and investment ahead of China's entry into the World Trade Organisation.''
 
A Chinese embassy official said the project stemmed from discussions in May between the leaders of both countries in Bangkok, which focused on the setting up of a ``special regime'' to promote trade, transportation and tourism between northern Thailand and Yunnan province.
 
The volume of two-way trade between the countries reached US$6.2 billion last year, with Thailand exporting US$2.6 billion worth of largely agricultural goods, including rubber.
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