1. A Special Meeting of the ASEAN Economic Ministers to discuss the Australian International Civil Aviation Policy as convened in Kuala Lumpur on 22 February 1979.

2. The Meeting was attended by H.E. Mr. Roesmin Nurjadin, Minister of communications of Indonesia; H.E. Mr. Alfredo L. Juinio, Minister of Public Works, Transportation and Communications of the Philippines; H.E. Mr. Hon Sui Sen, Minister for Finance of Singapore; H.E. Mr. Ong Teng Cheong, Minister for Communications of Singapore; H.E. Mr. Goh Chok Tong, Senior Minister of State for Finance of Singapore; H.E. Mr. S. Dhanabalan, Senior Minister of State for Foreign Affairs of Singapore; H.E. General Surakij' Mayalarp, Minister of Communications of Thailand; H.E. Dato' Seri Dr. Mahathir bin Mohamad, Deputy Prime Minister/Minister of Trade and Industry of Malaysia; H.E. Tan Sri Dato V. Manickavasagam, Minister of Transport of Malaysia; and H.E. Datuk Lew Sip Hon, Deputy Minister of Trade and industry of Malaysia.

3. H.E. Datuk Ali bin Abdullah, Secretary- General of the ASEAN' Secretariat, was also present.

4. During the course of the discussion on the Australian ICAP, the ASEAN Economic Ministers noted that the problem arising out of the imple- mentation of the Australian international Civil Aviation Policy (ICAP) would not be confined to ASEAN and Australia alone but will also involve other countries. The ASEAN Economic Ministers noted that the implementation of the new Australian ICAP, if allowed to go unchallenged would set a precedent for other developed countries to adopt a similar policy. The Meeting emphasized that the ICAP is a manifestation of the tendency of developed countries to change the rules as soon as the developing counties have mastered the Id rules and overcome the obstruction posed by them. Accordingly it as agreed that ASEAN should not only present a common front but also should take stock of their economic strength so as to protect their economic interests.

5. The ASEAN Economic Ministers reiterated their commitment to the ASEAN common stand adopted at the Seventh Meeting of the ASEAN Economic Ministers . They agreed on the following principles for negotiations on the Australian Inter- national Civil Aviation Policy;

(a) The ASEAN airlines should be allowed to participate in the new low far, scheme between Australia and Europe with or without stopovers in ASEAN countries. There should be no reduction in the present capacity of ASEAN air. lines. With the reducation in fares, there is likely to be an increase in traffic which necessitates extra capacity. In order to enable equitable participation, such in. crease in the capacity would initially be taken up by the airlines of Indonesia, Malaysia, the Philippines and Thailand.

(b) The new Australian ICAP low fare scheme would not be viable for participation by the national airlines of Indonesia Malaysia, Philippines-and Thailand because of their present limited capacity and landing rights. To overcome this, ASEAN should :





(i) seek stopover rights at reasonable surcharge based on the 10% proposed by Singapore; and

(ii) obtain additional landing rights.



(c) It would be necessary for the ASEAN countries to act collectively in their negotiations with Australia as well as other countries to secure better landing rights for the ASEAN airlines in general. (d) The Meeting agreed the proposals on the ASEAN - Australia fares in the Singapore working paper be used as a basis for' computing these fares.

6. The Meeting agreed that the form of retaliatory measures to be taken will be indicated and effected should the meeting of ASEAN Ministers and the Australian Ministers fail to yield the desired results.

7. The Meeting agreed that negotiations with Australia shall be held in Jakarta during the second week of March 1.979. This Meeting will be attended by ASEAN Economic Ministers and Foreign Ministers and the Australian Foreign Ministers and Minister of Transport.

8. The Meeting was briefed on the progress made by Malaysia towards implementing the ASEAN - Urea Project (Malaysia). In this respect, a Meeting of shareholders Entities f the ASEAN - Urea Project (Malaysia) would be held in April 1979 to negotiate a joint-venture agreement for the project.

9. in order to study the factors that could contribute to the strength of ASEAN for the purpose of Protecting its economic growth, the Meeting agreed to establish a panel of experts to gather data and conduct the studies.

10. The Delegation of Indonesia, Philippines, Singapore and Thailand express their sincere appreciation to the government and people of Malaysia for the hospitality accorded to them and for the excellent arrangements made for the Meeting.

The Meeting was held in the traditional spirit of ASEAN cordiality and solidarity.