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Joint Communique of the First Japan-ASEAN Economic Ministers Meeting
Tokyo, 26-27 November 1979 |
1 . A Meeting between the Economic Ministers of Japan and the ASEAN Economic Ministers as held in Tokyo on November 26-27, 1979.
2. Japan as represented by Their Excellencies Dr. Saburo Okita, Minister for Foreign Affairs, Mr. Noboru Takeshita, Minister of Finance, Mr. Kabun Muto, Minister, of Agriculture, Forestry and Fisheries, Mr. Yoshitake Sasak, Minister of International Trade and industry and Mr. Keijiro Shoji, Minister f Economic Planning Agency.
3. ASEAN was represented by Their Excellencies Mr. Radius Prawiro, Minister of Trade and Cooperatives, Indonesia; Dato Seri Dr. Mahathir Mohamed, Deputy Prime Minister and Minister of Trade and industry and Datuk Paul Leong, Minister of Primary Industries of Malaysia; Dr. Gerardo P. Sicat, Minister for Economic Planning and Dr. Vicente B. Valdepenas, Jr., Deputy Minister of Trade of the Philippines; Mr. Goh Chok Tong, Minister of Trade and industry, Singapore; and Dr. Upadit Wiriyawt, Deputy Minister of industry, Mr. Prok Amaranand, Deputy Minister of Commerce, Mr. Arporna Sribhibhad, Deputy Minister of Agriculture and Cooperatives, Thailand. His Excellency Datuk Ali bin Abdullah, Secretary-General of the ASEAN Secretariat was also present at the Meeting.
4. The Meeting as opened by H.E. Mr. Masayoshi Ohira, the Prime Minister of Japan. In his opening address, Prime Minister Ohira stated that he welcomed the expanding interchanges and cooperation between Japan and ASEAN in all fields, and expressed his determination that he would continue to expand and strengthen Japan-ASEAN cooperative relations for the stability and development of Asia as a whole. Prime Minister Ohira also stated that he would shortly visit China and emphasized that increasing relations between Japan and China would not imply any change in Japan’s posture and policy toward ASEAN.
5. The Economic Minister of Japan and the ASEAN Economic Minister exchanged views on matters relating to the economic relations between Japan and ASEAN as well as the world economic situation as a whole. They took note of the increasing importance of economic interdependence between nations and the need for maintaining world economic order and stability.
Japan and ASEAN on the threshold of the 1980's
6 . The Economic Ministers of Japan explained japans policy in their respective areas of responsibilities, and referring to the importance of the collaboration with ASEAN, stated that they would continue to promote operation with ASEAN.
7 . In response to the Statements by the Japanese Delegation on ASEAN and Japan Economic Cooperation in the 1980s, the ASEAN Economic Ministers reiterated the broad principles that guide ASEAN in its conduct of dialogues with third countries.
8. The ASEAN Economic Ministers also laid emphasis on expanded cooperative arrangements in various areas in the future. Among those stressed were the importance of commodities for ASEAN economy , importance of international commodity agreement and Common Fund, the establishment by Japan of a stabilisation of earnings (STABEX) scheme for ASEAN exports to Japan; the increase in the loan assistance of Japan to the ASEAN industrial projects to cover cost overruns and other adjustments; the review and re-orientation by Japan of its development assistance programme to support the new development strategies of ASEAN in the 1980s, as ell as the streamlining of loan procedures; the creation by Japan of the mechanisms for economic cooperation between ASEAN and Japan; the relocation of same Japanese industries to ASEAN and the transfer of technology through joint ventures in sectors supportive of ASEAN development as ell as the provision of adequate access to the Japanese market of the products of the relocated industry improvements, in the GSP and further relaxation of tariff and non-tariff barriers affecting products of export interest to ASEAN; and Japanese assistance to strengthen the work of the Technical Secretariat of the ASEAN Committee on Industry, Minerals and Energy (COIME).
9. The Economic Ministers of Japan and the ASEAN Economic Ministers noted with satisfaction that the cooperative relations between Japan and ASEAN were being consolidated in a broad range of fields, and agreed that Japan and ASEAN would continue close consultation and further expand their cooperation in order to secure peace and prosperity in Asia.
Review and Prospect of Japan-ASEAN Cooperation
10. The Economic Ministers of Japan and the ASEAN Economic Ministers discussed cooperative relations between Japan and ASEAN in various fields such as (1) economic cooperation, (2) cooperation in science and technology, (3) commodities, (4) trade, and (5) investment.
Economic Cooperation
11. The Economic Ministers of Japan expressed their determination that, in order to positively support the economic development of developing countries, Japan would further expand its economic cooperation both in quality and quantity ill accordance with such policies as doubling its official development assistance within three years and softening the terms of its assistance. They stated that it is Japan’s policy to continue to place highest priority on the ASEAN region. They further stated that, in implementing this policy, Japan would put more emphasis on assisting development of human resources through training of personnel, which provides the basis for nation building, and n cooperation 1. the field of agricultural development, energy and construction of infrastructure.
12. The ASEAN Economic Ministers noted such policy and expressed their desire that Japan would increase the magnitude and flexibility of its official development assistance (ODA) and align its ODA priorities with the development objectives of ASEAN countries in the eighties, including rural-Agricultural projects, income redistribution projects and other development programmes. The Economic Ministers of Japan responded that Japan would take desires of ASEAN into account in formulating Japan’s economic cooperation. In addition to the flow of the official resources tile ASEAN Economic Ministers also asked for the continued access to the other sources of funds available in and throgh Japan.
13. The Economic Ministers of Japan and the ASEAN Economic Ministers expressed their satisfaction on the implementation of ASEAN Urea Project in Indonesia as the first of the ASEAN industrial projects.
14. The ASEAN Economic Ministers expressed their appreciation for the financial assistance extended by Japan in the implementation of an ASEAN Industrial Project. In this connection, they hoped that the Government of Japan would streamline its procedures involved in obtaining loan financing for the ASEAN Industrial Projects so as to expedite the implementation of these Projects. in addition, the ASEAN Economic Ministers stated their stand that the same financing terms and conditions granted to the first ASEAN industrial Project should be applicable to all approved ASEAN Industrial Projects because these Projects have been conceived as ASEAN regional projects.
15. The Economic Ministers of Japan replied that, while appreciating the regional nature, -various forms of financial assistance would be extended on concessional terms to the extent possible in accordance with the nature and requirement of the projects, as stated in the joint Statement of the Meeting of the Prime Minister of Japan and ASEAN Heads of Government of 7 August, 1977. Thus, the concessional terms of financial assistance would be determined on a case-by-case basis.
16. The ASEAN Economic Ministers, however, reemphasized the special economic and political significance of the ASEAN Industrial Projects. they expressed their strong desire that Japan should extend the same terms of financing to all approved ASEAN Industrial Projects.
Cooperation in Science and Technology
17. The Economic Ministers of Japan and the ASEAN Economic Ministers reaffirmed their desire to step p cooperation in the field of science and technology, particularly aimed at development endogenous scientific and technological capability of the ASEAN countries. ASEAN considered Japan I its major partner in this aspect by virtue of the fact that Japan is a leading foreign investor in and supplier of technology to the ASEAN countries.
18. The Meeting also stressed the need for cooperation in science and technology. Such it cooperation could include the following activities:
(i) Strengthening and developing existing research Organizations and infrastructure within ASEAN including scientific and technological support services;
(ii) Upgrading the manpower capabilities of ASEAN in strategic and priority technological fields with particular emphasis on advanced and intermediate levels of training;
(iii) Facilitating the transfer of appropriate technology through, inter alia, the establishment of ASEAN Centers for appropriate technology in each of the ASEAN countries through existing institutions
(iv) Establishing effective linkages among scientific and technological institutions,
(v) Promoting the systematic dissemination of scientific and technological information. 19. The ASEAN Economic Ministers, in order to upgrade and apply modern production techniques in improving the manufacturing process in the countries, requested the Government of Japan to provide expertise to ASEAN countries. The Economic Ministers f Japan agreed that the Government of Japan would provide expertise, including those from private sector the maximum extent, within the framework of technical cooperation to meet the ASEAN requirements.
20. Taking note of the desires of ASEAN, the Economic Ministers f Japan stated their intention to promote the development f human resources, the intensification of technical cooperation to train expert engineers, educational cooperation and cooperation for the development of local communities.
21. The Economic Ministers of Japan shared strong interest in expanding scientific and technical cooperation with ASEAN. In addition to above measures, the ASEAN Economic Ministers expressed a desire for setting up of a special find for this purpose by Japan. Economic Ministers of Japan and the ASEAN Economic Ministers agreed to continue consultations at an expert level awith a view to expanding technical cooperation expeditiously to meet the needs of ASEAN.
Commodities
22. The ASEAN Economic Ministers stressed the importance of commodities to the ASEAN economics and expressed their expectation for the continued support of Japan for ASEANs positions in the negotiations and the implementation of the various elements of the integrated Programe for commodities, including the Common Fund.
23. The Economic Ministers of Japan recognized the importance of commodities to ASEAN economies and expressed their readiness to continue working closely with ASEAN in various international fora dealing with commodity matters such as international commodity agreements, an the Common Fund.
24. In response to the requests by the ASEAN Economic Ministers concerning the announcement of a voluntary contribution to the Second Window of the Common Fund, the Economic Minister of Japan stated that the Government of Japan is in the process of studying this matter.
25. The ASEAN Ministers also stressed the need for establishment of STABEX scheme with Japan in the near future. The Economic Ministers of Japan expressed their understanding for ASEANs desire establishing a STABEX arrangements with Japan, and, since there still main a number of issues to be resolved, suggested that the discussion at the expert level be accelerated.
26. The Economic Ministers of Japan reiterated the. support f Kuala Lumpur as the site for the headquarters of the International Natural Rubber Organization. The ASEAN Economic Minister expressed their, appreciation to Japan for its support.
Trade
27. Being m or trading partners, ASEAN and Japan will endeavour to expand their trade, with special emphasis on Increasing ASEAN export of manufactures and semi-manufactures to Japan. The Economic Ministers of Japan referred to the fact that ASEANs non-oil exports to Japan have been progressively increasing and expressed their expectation that this trend would continue.
28. The Economic Ministers of Japan, indicating that the rapid expansion. of trade between Japan and ASEAN as achieved particularly through the increase of japans imports from ASEAN, inter alia. manufactured products, stated that such trade trend showed that development of domestic industries in the ASEAN countries vas well-under way and various measures taken by the Government of Japan to improve access to the Japanese markets were taking effect.
29. The ASEAN. Economic Ministers, in order to further expand the trade between Japan and ASEAN requested Japan to relax tariff and non- tariff measures on products of interest to ASEAN, to improve Japans GSP as well as its Cumulative Rules of Origin, and to take such other means as sending import missions to the ASEAN countries, and make available various government import facilities of Japan to ASEAN products and to improve import procedures. In this connection, they expressed their hope that Japan speed up the consideration and implementation of proposals in ASEANs Memorandum on Improvements to the General system of Preferences Scheme tabled at the Third ASEAN-Japan Forum.
30. The Economic Ministers of Japan emphasized that, in MTN, Japan had made its utmost efforts for the realization of requests from developing countries, especially those of the ASEAN countries and hoped that implementation of the MTN agreements would contribute to the expansion of exports of ASEAN in the future. Therefore, they expect the full participation of as many countries as possible in these agreements mad, in the MTN. The Economic Ministers of ASEAN agreed that early implementation f tariff and non-tariff agreements in the MTN will help improve access for ASEAN export to Japan..
31. With regard to further improvement on the tariffs and the GSP, the Economic Ministers of Japan, while asking for understanding of the ASEAN side about difficulties which might be caused in Japans economy, stated that the Government of Japan would study the possibility of such improvement in the future, taking to consideration requests made by ASEAN. They also stated that Japan would endeavour to maintain GSP beyond 1981. On the Rules of Cumulative Origin, more information should be disseminated to encourage its use. As to the ASEANs request to improve the rules, they proposed that its background and facts be studied at an early date among experts.
32. The Economic Ministers of Japan further stated that, in order to support ASEANs effort to expand their exports to Japan, Japan is taking various measures such as implementation of market researches, convening of various trade seminars, dispatch of import promotion missions and establishment of the, provisional ASEAN Promotion Center for Trade, Investment and Tourism, and that Japan would continue to cooperate as much as possible it the ASEANs initiative for cultivating the Japanese markets.
33. Recognising the importance of small and medium-scale companies, the Economic Minister of Japan agreed to provide more opportunities and facilities to them to import from ASEAN.
Investment
34. The ASEAN Economic Ministers noted, with appreciation, the assistance that Japan had provided to ASEAN in the field of industrial development.
35. On the issues connected with ASEAN-Japan cooperation in investment, the ASEAN Economic Ministers, while appreciating the assistance extended by Japan in carrying out of feasibility studies on certain ASEAN Industrial Projects, requested that an immediate study be undertaken of the proposed pulp and paper projects in ASEAN, starting in the first quarter of 1980. The Economic Ministers of Japan expressed their readiness generally to carry out feasibility studies of the projects of regional nature within the annual programme of technical cooperation of Japan.
36. The ASEAN Economic Ministers also stressed the need to relocate in ASEAN, those Japanese industries which depend on ASEAN for their raw materials. The ASEAN Economic Ministers also emphasized that, in the decade of the 80s, Japanese industries should concentrate on the manufacture of products involving high level of technology, less sophisticated industries should be relocated in ASEAN and Japan is requested to provide access to its market for the product of these industries.
37. The Economic Ministers of Japan explained that the structural changes currently taking place in the Japanese industrial sector could give rise to the above-mentioned phenomena depending upon competitiveness of individual industries.
38. The Economic Ministers of Japan and the ASEAN Economic Ministers noted with satisfaction the close relationship between the private sectors of ASEAN and Japan. They agreed that this relationship should be further strengthened. In this connection, the Economic Ministers of Japan took note of the ASEAN proposal to have an ASEAN-Japan Conference on industrial Cooperation in Tokyo.
39. The Economic Ministers of Japan stated that japans external private investment was liberalized in principle, and expressed their hope that ASEAN continue to make effort to further improve the investment climate so that japans overseas private investment will continue to expand smoothly in harmony with the ASEAN societies. The ASEAN Economic Ministers reaffirmed their commitment to maintain an attractive investment climate in ASEAN to facilitate more Japanese investment in ASEAN.
40. The Economic Ministers of Japan stressed t e importance of concluding agreements to protect investment and to avoid double taxation. Conclusion
41. The Meeting as held in a friendly and cordial atmosphere, reflecting the close ties between Japan and ASEAN.
42. The Economic Ministers of Japan and the ASEAN Economic Ministers highly appreciated that this Meeting was successful in further expanding the cooperative relations between Japan and ASEAN and promoting mutual understanding between them.
Acknowledgment
43. The ASEAN delegations expressed their deep appreciation to the Government and people of Japan for the arrangements of the Meeting and the hospitality accorded to them.
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