The Second ASEAN-US Dialogue (1978)

The Second Meeting of the ASEAN-United States Dialogue was held in Washington,D.C. on August 2-4, 1978 at Ministerial level.
H.E. General Carlos P. Romulo, Minister of Foreign Affairs of the Philippines, was the ASEAN Spokesman. The ASEAN delegations were led by H.E. Dr. Widjojo Nitisastro, Minister Coordinator for Economy, Finance and Industry of Indonesia; H.E. Tengku Ahmad Rithauddeen, Minister for Foreign Affairs of Malaysia; H.E.Mr.S. Rajaratnam, Minister for Foreign Affairs of Singapore; and H.E. Dr. Upadit Pachariyangkun, Minister of Foreign Affairs of Thailand.
The United States delegation was led by the Honorable Cyrus Vance, Secretary of State, and included Secretaries Blumenthal, Kreps, Bergland, Schlesinger and Governor Gilligan.
H.E. Datuk Ali bin Abdullah, Secretary General of the ASEAN Secretariat, was also present.
President Carter received the ASEAN delegations and reaffirmed strong US support for the goals and aspirations of ASEAN. He noted the excellent example ASEAN sets for others by its cooperative contribution to regional stability economic growth and social progress. He commended its efforts to bridge the gap between developed and developing countries, to seek solutions to such problems as better health and education, greater employment opportunities, and to increase agriculture and industrial productivity. He pledged continued US cooperation in advancing the economic strength, cohesion and cooperation of ASEAN member countries which the association has so fruitfully fostered.
During their meeting, ASEAN and United States delegations mutually acknowledged their growing importance to one another and agreed to explore ways and means of strengthening their relations.
The United States welcomed the role of ASEAN as an indigenous regional grouping in Southeast Asia and affirmed its commitment to support ASEAN in the realization of its aims and objectives in contributing to the well-being and welfare of the people of the region which is fundamental to regional peace and stability.
The United States expressed its willingness to work with other developed countries in support of ASEAN's efforts at regional cooperation.
The United States appreciated ASEAN's efforts to promote good relations with all nations.

Refugee Problem
ASEAN and the United States viewed with concern the serious international humanitarian problem posed by the presence of Indo-Chinese refugees in ASEAN countries and agreed on the urgent need for a concerted international effort to find a just and durable solution to the problem The United States pledged to intensify its efforts, and to cooperate with ASEAN in encouraging the world community to do more.

New International Economic Order
ASEAN and the United States reaffirmed their strong support for cooperative efforts toward attainment of an equitable international economic order. They jointly stressed the importance of continued world economic recovery to facilitate economic growth. They also underscored the need to curb protectionism and to promote more open world markets, with special attention to the needs of the developing countries for export markets.

North/South Issues of Special Concern
The United States and ASEAN agreed to cooperate constructively in forthcoming international meetings addressing major North/South issues. ASEAN and the United States agreed that the forthcoming Fifth Session of UNCTAD in Manila in 1979 would provide an opportunity for - promoting international cooperation and understanding and play a significant and effective role in expediting progress toward the attainment of an equitable international economic order. They further agreed on the importance of constructive participation in future meetings of the United 'Nations' Committee of the Whole.

Common Fund and the Integrated Program for Commodities (IPC)
ASEAN and the United States supported the decision of the Ad Hoc Committee on the implementation of the IPC to invite the Secretary General of UNCTAD, in the light of his assessment of developments and prospects based on further consultations, to set a date for reconvening the Common Fund Conference. ASEAN and the United States also stressed that discussions on individual commodities be expedited with a view to concluding work on or before the end of 1979.
ASEAN expressed disappointment at the general lack of progress in implementing the IPC. In particular, ASEAN expressed its regrets that negotiations on a Common Fund have not resulted in its establishment and that progress on negotiations on individual commodities so far have generally not passed beyond the preliminary stage. ASEAN stressed the importance of commodities to the economic well-being of the region and explored with the United States delegation possible solutions to the problems holding up progress in. establishing a Common Fund and agreement on individual commodities. The United States pledged to pursue actively the Common Fund Negotiations to a successful early conclusion and to play a constructive role in discussions and negotiations to conclude appropriate arrangements or agreements on individual commodities.
Both ASEAN and the US expressed satisfaction with progress in consideration of an international rubber agreement. The United States noted that progress had been made within the IPC in analyzing the problems of other commodity markets and in defining possible international measures to address these problems.
The discussions on commodity policy also focussed on raw materials, of particular interest to ASEAN countries. It was agreed that ASEAN and the United States would consult periodically as necessary on various Commodity issues of mutual interest.
The US underscored its view that global improvements in trade and commodity systems are the most effective means of attaining economic growth and development. The ASEAN Minister stressed the importance of assistance in promoting ASEAN exports, market access on a preferential basis where possible, protection against unwarranted trade restrictions, and regional STABEX-type arrangements to compensate reduced earnings from commodity exports. The US suggested continued study by the IMF/IBRD Development Committee of the adequacy of existing facilities for the stabilization of export earnings.

Exchange of Views on Trade issues
The U.S. and ASEAN noted the importance of the Generalized System of Preferences (GSP) and of the US GSP scheme to ASEAN and other developing countries. They noted the number of suggestions made by ASEAN and other developing countries which could lead to improving this scheme and its operations. ASEAN renewed its request for several further improvements in the U.S. system, and the U.S. agreed to study these requests. The U.S. Administration is sympathetic to the ASEAN request that all ASEAN countries be eligible for the US GSP.
ASEAN and the United States reviewed progress in the Multilateral Trade Negotiations and affirmed the desirability of meeting the December 15 target for conclusion which was recently established in Geneve. Both sides pledged themselves to facilitate agreement in the many areas covered, and to seek maximum possible trade liberalisation. They recognized the importance of an improved, more open and non-discriminatory international trading framework which at the same time takes fuller account of the needs of the developing countries through special and differential treatment, and which insure their more meaningful participation in the world trading system. They affirmed that developed countries do not expect contributions from the developing countries inconsistent with their trade, finance and development needs.

Business Relations and investments
ASEAN and United States delegations exchanged views the expansion of business relations between ASEAN and the United States, and on the role of foreign, private sector investments in the economic development of ASEAN.

ASEAN and the U.S. agreed on the importance of stimulating the flow of investments into the ASEAN region. U.S. Government measures to facilitate these investments, such as assistance from the Overseas Private Investment Cooperation (IOPIC) and the U.S. Eximbank, can play a useful role.
In this connection, ASEAN welcomed the U.S. announcement by OPIC President Rutherford Poats of the visit to the region of an ASEAN investment mission of interested American businessmen, to be headed by former Deputy Secretary of State Charles Robinson, and organized by OPIC.
The United States declared its readiness to facilitate business contacts and investments in the ASEAN region which contribute to the accomplishment of ASEAN development objectives.
Towards this end, ASEAN and the United States agreed to encourage the earliest possible establishment of an ASEAN-US Business Council under the auspices of the ASEAN Chambers of Commerce and Industry (ASEAN-CCI) and the U.S. Chamber of Commerce and Industry.
ASEAN also welcomed the U.S. announcement of the visit of U.S. Eximbank Chairman John Moore to ASEAN countries in November, 1978, as well as the prospect that Eximbank would consider supporting ASEAN industrial projects.
ASEAN stated that it encourages private sector participation in the ASEAN industrial complementation schemes and the industrial projects in the ASEAN countries. The United States declared its readiness to facilitate discussion with the American private sector regarding participation in these projects.
The ASEAN and U.S. delegations also discussed the proposed elimination of the tax deferral on the foreign earnings of U.S. companies. ASEAN reiterated its concern over the adverse affects of such a move.

Development Cooperation
The United States reconfirmed its readiness to participate in a wide range of ASEAN regional projects in development cooperation, within the framework of general U.S: assistance policies. The United States announced its readiness to proceed to the design Phase on four projects: an ASEAN Plant Protection Program, an ASEAN Watershed.

Conservation and Management Project, establishment of an ASEAN Agriculture Development and Planning Center and ASEAN Drug Prevention Education Seminar for Teachers, Educators and Curriculum Designers. Feasibility studies are to be carried out on other proposals ASEAN welcomed these developments.
ASEAN called on the United States authorities to ensure that the "basic human needs" policy governing aid would meet the specific requirements and changing needs of the region.
The United States and ASEAN also agreed to cooperate in food and energy matters and to establish a joint working group on energy.
The United States also offered to cooperate with ASEAN in the field of science and technology. The cooperation would primarily aim at upgrading the indigenous science and technology infrastructure and capacity of ASEAN.
The ASEAN and U.S. delegations recognized the increasing drug menace to the health of peoples in both developed and developing countries, and pledged increased support to bring this problem under control. As part of this effort, the United States agreed to continue its bilateral and multilateral assistance to ASEAN countries and to intensify and expand measures to prevent and control drug abuse.
The Meeting agreed to continue consultations on the foregoing proposals.

ASEAN-US. Cooperation in Education and Culture
There was an exchange of views and agreement to cooperate in expanding the scope and range of contacts between the peoples and educational institutions of ASEAN and the United States. The United States expressed its support of ASEAN cultural programs and projects in education. The ASEAN proposal to meet as soon as possible in the region to define the terms of reference of this cooperation was agreed to by the U.S.
The Second ASEAN-U.S. Dialogue was recognized by participants as an important step in strengthening further the friendship and close ties between ASEAN and the United States. It provided an opportunity for ASEAN and U.S. plural leaders to meet and consult on cooperation in pursuing common goals for the progress and prosperity of the region. ASEAN and the United States agreed to continue their efforts toward the consolidation of a durable, long-range, mutually beneficial relationship, and agreed to take measures to facilitate more active economic cooperation to that end.
They agreed that the next meeting of the ASEAN United States Dialogue will be held next year in the ASEAN region on a date to be mutually agreed.