THE YEAR 1980-1981 saw ASEAN move into new levels of regional cooperation. The challenge of the crisis in Indochina, the expressions of interest and concern on common regional topics and problems that require joint action, and the growing awareness of ASEAN's identity have strengthened the political cohesion and solidarity of ASEAN. These developments, in turn, have provided a fresh impetus for further social and economic progress.

Food, science and technology, energy, health, information, communications, transportation, environment problems are recurring concerns and require that member governments devote more time, energy and resources to these topics. The increased interdependency of ASEAN countries, the growing partnership with their "dialogue" partners Australia, Canada, the member states of the European Community, Japan, New Zealand, the United States, and the United Nations - and the application of modem technology across broad social planes have resulted in mostly expanded programs and in a need for improved mechanisms to monitor, coordinate and evaluate these activities. On cooperation with third countries, the ASEAN Economic Ministers agreed that ASEAN should not dissipate its efforts on all front but should concentrate on shipping, energy and access to markets.

1980-1981 was a significant year for ASEAN economic cooperation. The economic ministers adopted new forms of economic cooperation to further intensify closer relations among member countries.

The ASEAN Economic Ministers on Industry met for the first time in Bali, Indonesia on 29-30 September 1980, and, among other things, produced the General Guidelines for ASEAN Industrial Complementation (AIC) that was to form the basis for the Basic Agreement on the ASEAN Industrial Complementation worked out by the Committee on Industry, Minerals and Energy (COIME). This was further revised by the Eleventh ASEAN Economic Ministers Meeting held in Jakarta on 29-30 May 1981, and as of this writing, awaits formal signing by the Foreign Ministers in June in Manila.

The ASEAN Industry Ministers also approved two packages, one of Existing products and the other of New products, in the automotive industry for complementation. At the Eleventh Meeting of the ASEAN Economic Ministers, an expanded package of Existing automotive products was approved and finalized for implementation. Some bilateral non-tariff preferences had mean while been successfully negotiated by some member countries.

The year also saw significant progress in the ASEAN Industrial Projects (AIP) scheme with the adoption by the Industry Ministers of new procedures for financing ASEAN industrial projects. The Industry Ministers also agreed that since sufficient impetus had already been achieved towards greater industrial cooperation, the participation of all five member countries in an ASEAN project would no longer be an absolute necessity to proceed with the project. But non-participating countries should be consulted to ensure that their national interests are not adversely affected by the decision to proceed with an ASEAN industrial project.

On the ground, the ASEAN Urea Project (Indonesia) had taken off. Its construction contract was signed on 16 December 1980; an additional loan of US$ 90 million from Japan finalized on 30 March 1981; and construction of plant started in April for completion in three years' time. The ASEAN Urea Project (Malaysia) also made progress. The project company, ASEAN Bintulu Fertilizer Sendirian Berhad, was officially incorporated on 6 December 1980 and a loan package of 48 billion yen (US$ 225 million) from Japan obtained. Based in Bintulu, Sarawak, the plant is targetted to be on stream in late 1984. The plant site for the ASEAN Rock Salt Soda Ash Project (Thailand) has now been decided upon and the project is pregared for take-off.

The AIP scheme was given a shot in the arm at the Eleventh ASEAN Economic Ministers Meeting, where it was agreed that each country would be allowed to consider up to three ASEAN industrial projects at any one time without waiting for the first one to be implemented. This agreement is expected to accelerate the pace of industrial development of the ASEAN region.

The ASEAN Economic Minister on Energy Cooperation met twice during the year, first in Bali on 29-30 September 1980, and again in Kuala Lumpur on 27-30 April 1981.

At their first meeting, the Energy Ministers worked out a comprehensive programme for energy cooperation that comprises short-term, medium-term and long-term approaches. The such as emergency petroleum sharing and the continuation of bilateral assistance schemes in oil and natural gas between ASEAN countries. With regard to the immediate need to increase oil supplies for ASEAN member countries, Indonesia offered to undertake consultations with OPEC member countries in the Gulf area for additional oil supplies for ASEAN member countries to make up for the shortfall caused by the fighting between Iran and Iraq. The medium-term approach relates to cooperation in the exploration and development of oil and gas. And the long-term approach relates to cooperation in the development of alternative energy resources.

At their second meeting, the Energy Ministers adopted the programme of cooperation in coal drawn up by the Experts Group on Coal that met in Bandung, Indonesia on 6-7 April 198 1, as well as the programme of cooperation of the ASEAN Heads of Power Utilities and Authorities that met in Jakarta on 13-14 April 1981. These are wide-ranging programmes that promise to form the groundwork of a detailed and integrated blue-print for ASEAN energy cooperation in the years ahead. The Energy Ministers have also recommended the establishment of a "Committee on Energy Cooperation" to coordinate projects and activities related to this field.

In the field of food, agriculture and forestry, progress had also been made. The ASEAN Food Security Reserve Board (AFSRB) held its first meeting in Bangkok on 3-4 November 1980 and finalized its terms of reference. The feasibility study on the ASEAN Pesticide Manufacturing Plant is expected to start soon. Various projects under the ASEAN Common Agricultural Policy (CAP) were also being implemented, most notably the establishment of an ASEAN Common Quarantine Ring providing for common plant and animal protection in the ASEAN region, the pooling of research and technology in the agricultural field, and various activities related to the improvement of the life of the rural poor.

In the field of trade liberalization the item by item approach had, by the Eleventh AEM, reached a total figure of 6,58 1 trade preferences exchanged. Various countries had also Implemented the decision of the Ninth AEM Meeting to accord a 20% margin of profit on all items with import trade value of less than US$ 50,000 subject to exclusion lists on sensitive items. The Tenth AEM Meeting, in another bold move, decided to raise rates on existing tariff preferences to a minimum of 20-25% with effect from 1 April 1981. Then at the Eleventh AEM Meeting, a minor break-through was achieved when the Ministers agreed that a 20-25% margin of profit be accorded to all items with import value of less than US$ 500,000 subject to exclusion lists. COTT was also instructed to study, in general, other measures to expand intra ASEAN trade, and, in particular trade expansion in food products. Voluntary offers per member country is also to be raised from 600 to 800 items per year.

In the fields of transport and communications, steady progress was also chalked up on many fronts. A significant development was the adoption of the Resolution on Shipping and Trade by the Tenth ASEAN Economic Minister Meeting and its reaffirmation by the Eleventh AEM Meeting. In this connection, the Eleventh AEM Meeting directed the Committee on Transport and Communications (COTAC) to study the feasibility of setting up a regular ASEAN liner service.

In the field of civil aviation, the negotiations with Australia and the United Kingdom on the status of ASEAN airlines' participation on the Kangaroo route was carried to a Successful conclusion when both Australia and the UK agreed substantially to ASEAN's request concerning unrestricted access to the Australia-UK Super Apex Fare and the provision of a stop-over facility in ASEAN, effective I June 1981.

IN THE FIELD of cooperation in social development programmes, the First Meeting of the ASEAN Ministers of Health was held in Manila on 22-24 July , 1980 with the objective of strengthening and coordinating regional cooperation in health among ASEAN member countries, contributing to regional self-reliance and self- determination in the context of health for all by the year 2000.

The Health Ministers declared their agreement to attain this objective and adopted the following guidelines:

1. Ensure that collaboration contributes directly or indirectly towards regional self-reliance and self-determination;

2. Emphasize health as an integrated part of the overall socio-economic development;

3. Aim at making health care accessible to the total population, with priority being given to the underserved and depressed areas;

4. Promote health manpower development con- sistent with the needs of ASEAN countries;

5. Continue with international collaboration in health while striving to be self-reliant in the delivery of health services ; and

6. Emphasize primary health care in the overall health development strategy.

The Health Ministers also agreed on the following programme areas for collaboration: Primary Health Care; Disease Control; Health Planning, Management and Information System; Nutrition; Health Manpower Development; Environmental and Occupational Health; Pharmaceuticals, Biological and Traditional Medicine; and Mental Health.

IN THE FIELD of science and technology, the First Meeting of ASEAN Ministers of Science and Technology was held in Pattaya, Thailand on 27 and 28 0ctober 1980.

Conceived as a forum for exchanging concepts, views and ideas among participants from ASEAN countries, the Meeting discussed the existing scientific activities and noted their increasing importance for the development of the member countries. To strengthen cooperation in science and technology, they agreed to propose to their respective governments the following ways of cooperation:

1. ASEAN Ministers and officials of science and technology should meet to formulate policies and guidelines for ASEAN cooperation in the field of science and technology.

2. The feasibility of an ASEAN trust fund set up from international organizations and third countries should be studied in support of ASEAN cooperation in the field of science and technology for development and should be given urgent consideration at the next COST meeting.

3. Exchange of scientific and technological in- formation among ASEAN member countries through the Bureau of Science and Technology of the ASEAN Secretariat should encouraged.

4. Technical meetings and workshops among scientists and technologists should be encouraged to echange views and share knowledge.

5. Support by member countries should be given to recognized professional scientific societies in organizing cooperative activities.

6. Exchange of scintists and technologists among ASEAN countries to work in research institutions shall be undertaken.

7. Research and development institutions shall be strengthened.

,8. The Committee of SCience and Technology shall be encouraged to formulate plans of action on science and technology.

9. Member countries will share information on science policy and planning periodically.

10. The Meeting agreed to request the Committee on Science and Technology to deal with scientific activities which are in the research and development stage while the other ASEAN committees are to deal with activities which have reached the commercial stage.

Concerned with the need to safeguard the ASEAN environment and its natural resources, the first ASEAN Ministerial Meeting on the Environment was held in Manila 30 April 1981.

The Environment Ministers declared their agreement to strengthen regional cooperation and collaboration in the field of environment. They adopted the following objective and policy guide- lines for ASEAN cooperation in this field:

Objective:

To ensure the protection of the ASEAN environment and the sustain-ability of its natural resources so that it can sustain continued development with the aim of eradicating poverty and attaining the highest possible quality of life for the people of the ASEAN countries.

Policy Guidelines.-

1. Foster a common awareness awareness-the people of the ASEAN countries of the biological, physical and social environment and its vital significance for sustained development to proceed apace;

2. Ensure, as far as practicable, that environmental considerations are taken into account in development efforts, both ongoing and future;

3. Encourage the enactment and enforcement of environmental protection measures in the ASEAN countries;

4. Foster the development of environmental education programs.


The Ministers agreed on the following priority areas:

a) Environmental Management including Environmental Impact Assessment;
b) Nature Conservation and Terrestrial Ecosystems;
c) Marine Environment;
d) Industry and Environment;
e) Environmental Education and Training; and
f) Environmental Information.

THE PAST year also saw a notable growth in ASEAN's external I relations. All its dialogue partners: Australia, Canada, Japan, New Zealand, the United States, the EEC and the UNDP have increased their proffers of cooperation.

In September 1980, ASEAN and the United States held a third dialogue, which reflects the continuing interest of the United States in ASEAN's constructive work for the progress and stability of the region. ASEAN member countries are considering the proposed Memoranda of Understanding on Energy Cooperation and Tropical Medicine and Public Health Programme.

In November 1980, the first meeting of ASEAN-EEC Joint Cooperation Committee (JCC) was held in Manila to set in motion the implementation stage of the ASEAN-EEC Cooperation Agreement and adopted the rules of procedures of the JCC. ASEAN regards with great importance the formal commitment of the European Community to contribute to the development efforts of ASEAN within the framework of equity and mutual advantage. The agreement of cooperation with the EEC, ranks among the significant achievements of ASEAN since its establishment.

In October 1980, ASEAN experts prepared a memorandum finalizing details for the establishment of ASEAN Centres for Appropriate Technology (ACAT). This was a follow-up of a decision made during the Second Joint ASEAN-Japan Experts Meeting on Cooperation in Technology Transfer and Energy which recommended the establishment of appropriate technology centres in each ASEAN country. On 23 December 1980, ASEAN and Japan signed the Agreement on the Establishment of the ASEAN Promotion Centre on Trade, Investment and Tourism in Tokyo. ASEAN member government have ratified the Agreement.

ASEAN appreciates the proposal made by the Japanese Prime Minister during his visit to ASEAN on 8-20 January 1981 on the proposed establishment of a "Project for Human Resources Development". ASEAN welcomed Japan's assurances that in the implementation of the project, Japan would take into consideration the "wishes and ideas" of the ASEAN countries.

During the year under review, ASEAN and Canada signed two Memoranda of Understanding. The Memorandum of Understanding on the ASEAN-Canada Forest Tree Seed Centre Project was signed in Ottawa on 1 May 1981 by the Thai Foreign Minister on behalf of ASEAN and, by the Canadian Secretary of State for External Affairs, on behalf of Canada. The Memorandum of Understanding on the ASEAN-Canada Fisheries Post Harvest Technology Centre Project was signed in Manila on 21 May 1981 by the Philippine Foreign Minister, on behalf of ASEAN and, the Canadian Ambassador in Manila, on behalf of Canada. ASEAN member countries are presently considering the proposed Industrial Technical and Commercial Cooperation Agreement with Canada.