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FOREWORD



The course for future ASEAN cooperative endeavours was set out during the year under review through decisions of the 17th ASEAN Ministerial Meeting (AMM), the Post Ministerial Conferences (PMC), the 17th ASEAN Economic Ministers Meeting (AEM), the 5th ASEAN - European Communities (EC) Ministers Meeting (AEMM), the 2nd ASEAN - Japan Economic Ministers' Meeting (AJEMM), ASEAN Ministers' Meeting on Agriculture and Forestry, Energy, Environment and Labour. These Meetings provided new policy directions and gave fresh impetus for intra and extra-ASEAN cooperation.

The 17th AMM in July 1984, Jakarta, adopted most of the recommendations of the Task Force which was established in July 1982 to undertake a comprehensive review and appraisal of ASEAN cooperation. The adopted recommendations, which are being implemented, would guide ASEAN in promoting greater regional stability and closer cooperation among ASEAN countries.

During the Post Ministerial Conferences of the 17th AMM in July 1984, ASEAN and Pacific dialogue countries agreed to take steps to initiate cooperation on the theme of human resources development which would be open to the developing Pacific countries. Following this decision their senior officials met to formulate a policy direction paper for the implementation of a programme on human resources development and an overview paper on economic trends and developments in the Pacific region.

The 17th AEM in Kuala Lumpur, February 1985, reviewed economic cooperation within ASEAN and between ASEAN and its dialogue countries. Recognizing the need for more intensive intra-ASEAN economic cooperation, the AEM set fresh policy directives and agreed that studies be made on new measures to accelerate intra-ASEAN trade including approaches for a more effective utilisation of the Preferential Trading Arrangements (PTA). To improve the PTA scope, the Ministers approved the application of a 25 percent, across-the-board tariff cut instead of the present 20 - 25 percent Margin of Preference (MOP) levels, on all items with import value beyond US$10 million.

Industrial cooperation attained further progress with the AEM's approval of additional products to be included in the list of ASEAN Industrial Joint Ventures (AIJV) projects. On the ASEAN Industrial Projects (AIP), the ASEAN Bintulu Fertilizer Project in Malaysia was 88% completed as of March 1985, while the ASEAN Aceh Fertilizer Project in Indonesia has commenced deliveries to member countries.

Significant achievements were made in the fields of science and technology, social development, and culture and information. The Protein Project was successfully completed. The second documentary film on socio-cultural aspects of ASEAN was completed and would be screened by member countries on ASEAN Day, 8th August 1985. Senior drug officials intensified ASEAN co- operation in combatting drug abuse and trafficking. A comprehensive youth programme to enhance the participation of youth in development activities was formulated.

During the year, a Ministerial Declaration on Heritage Parks and Reserves and another on the ASEAN Environment were signed, while agreements on the Conservation of Nature and Natural Resources and on the Recognition of Domestic Driving Licences Issued by ASEAN countries were initialled.

During the year under review, ASEAN held dialogues with Australia, Canada, EC, Japan and the United States. Some positive results were registered in development cooperation with some of the dialogue partners. However, the results in commercial cooperation did not meet with ASEAN's expectations.

At the 5th AEMM held in November 1984 in Dublin, Ireland, Brunei Darussalam acceded to the ASEAN - EEC Cooperation Agreement of 1980. A positive aspect of the Meeting was the agreement to convene an ASEAN - EC Ministerial Meeting on Economic Matters. This is a welcome development for it will add new impetus to ASEAN - EEC co- operation. Towards this end, the ASEAN - EEC Cooperation Agreement, which will expire in October 1985, is being reviewed to establish new priorities and directions.

The problem of Kampuchea did not meet with any semblance of a solution despite repeated calls made by ASEAN and the international community whose support of the ASEAN resolution for the withdrawal of foreign forces from Kampuchea and exercise of the right of self- determination of the Kampuchean people increased overwhelmingly during the 39th session of the United Nations General Assembly. The latest Vietnamese dry-season military offensive failed to destroy the Coalition Government of Democratic Kampuchea's forces which suffered only minor losses. Its failure clearly demonstrated the resilience of the Kampuchean patriot's resistance forces and their determination to continue their political and military struggle against the aggressor through the use of guerilla tactics.

The ASEAN Foreign Ministers in a Special meeting in February in Bangkok deplored the escalation of fighting, expressed concern over the situation along the Thai-Kampuchean border and condemned Vietnam's violations of Thailand's sovereignty and territorial integrity. They called on Vietnam to come to the negotiation table in order to find a just and lasting solution to the Kampuchean problem and to take heed of the clearly expressed desire of the international community for an early and comprehensive settlement of the Kampuchean problem and abandon its military Occupation of Kampuchea. They also called on the international community to support the Kampuchean people in their political and military struggle to liberate their homeland from foreign occupation.

ASEAN welcomed the launching of the New Round of Multilateral Trade Negotiations (NRMTN). However, ASEAN reiterated the need to fulfill the past commitments of the Tokyo Round and the relevant provisions of the 1982 GATT Work Programme. It also stressed that the interest of ASEAN and other developing countries should be fully taken into account in the New Round and that consideration should be given to the improvement of their market access for their exports.

The year under review was characterized by the implementation of the various Ministerial decisions and adopted recommendations of the ASEAN Task Force, to chart new course for greater intra-ASEAN cooperation and to review the cooperation programmes with the dialogue partners. In the International scene, ASEAN again conveyed its views on international economic issues to the Bonn Summit. ASEAN's inputs to the Summit highlighted the problems faced by developing countries, particularly the need to reduce protectionism in developed countries, the seriousness of the debt problem, the continuing instability of commodity prices and the importance of reviving the North-South dialogue.

 

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