The Year 1982 - 1983 was a successful one for ASEAN. ASEAN continued to pursue the task of giving breadth and scope to its regional cooperation endeavours. Steady progress was attained over a broad front. New programmes were launched and achievements in existing programmes consolidated.
The year under review was also a year of reflection, of stock taking, and of evaluation. Special attention has been devoted in the past year to reviewing and appraising the entire ASEAN cooperation, including the organizational machinery, with a View to strengthening cooperation and increasing its effectiveness. As a dynamic organization, institutional linkages in ASEAN have sprung up spontaneously at every level - official and non-governmental, particularly private sector. Every such tie is valuable as it expresses the ASEAN concept and strengthens its cooperation. Similarly, with the growing maturity of ASEAN's various dialogues and relations with third countries, a comprehensive evaluation of ASEAN's third-country relations has also been initiated.
Economic Cooperation
Economic cooperation continued to occupy the bulk of ASEAN's efforts, and 1982-1983 saw notable developments.
The ASEAN Economic Ministers (AEM) held their Fourteenth Meeting in Singapore on 11-13 November 1982 to review the work of the various Economic Committees and to provide direction and impetus to the full range of ASEAN activities under their charge. In addition, the ASEAN Ministers on Agriculture and Forestry held their Fourth Meeting in Kuala Lumpur Malaysia on 8-9 October 1982 and the AEM on Energy Cooperation held their Fourth Meeting in Singapore on 19 January 1983 to discuss matters pertaining to their specific portfolios.
In Industrial cooperation 1982-1983 was a mixed year. On the one hand, the initialling of the Basic Agreement on ASEAN Industrial Joint Ventures (BAAIJV) by the Fourteenth AEM Meeting has kindled new hopes and fanned rising Expectations, especially within the ASEAN private sector. On the other hand, the progress of some of the ASEAN Industrial Projects (AlPs) has encountered practical difficulties, and been delayed.
The construction stage of the ASEAN Urea Project (Indonesia ) is fast nearing completion. As of February 1983 the overall progress of the Project was reported as 80.0 per cent complete despite difficulties encountered. in some areas such as piping erection. Personnel recruitment and training has proceeded apace and there is every expectation that the Project will be completed by the end of December 1983.
For the ASEAN Urea Project (Malaysia), site preparation was completed by January 1983 and the site handed over to Kobe Steel Ltd. of Japan which had been awarded the Main Contract. Site soil investigation by Kobe Steel was at the report writing stage as of February 1982. The target date for the completion of the Project is 1985.
The Supplementary Agreement of the ASEAN Copper Fabrication Project (Philippines) has reached an advance stage of negotiation and with the expected resolution of various issues related to market support should be finalised in the near future. Invitations to bid for plant construction work has now been released.
The ASEAN Rock Salt-Soda Ash Project (Thailand) was incorporated under the name of ASEAN Soda Ash Company Ltd. in June 1982 and the Project Management Consultant has been selected. Further progress on the Project is now dependent on consideration of markets for planned rock salt production, equity sharing between the Thai Government and private sector as well as the issues of "available ASEAN markets" for the soda ash output of the project. The Thai Government has now initiated a study to determine the scope of the rock salt mine and on the basis of such study the issue of equity sharing is expected to be solved. As to loan negotiation for the project. The Thai Government expects to start negotiations with Japan as soon as the remaining issues are agreed upon.
In the field of ASEAN Industrial Complementation (AIC), the Eighteenth Meeting of the Committee on Industry, Minerals and Energy (COIME) in August 1982 agreed that member countries may include additional products to the First Package of Existing Automotive Components implemented the previous year. As a result, the scope of the First Package has been substantially expanded, With regard to COIME's decision in May 1982 to explore the possibility of brand-to-brand complementation in the automotive industry, Terms of Reference for such an approach were drawn up on the basis of consultations with and initial proposals received from car manufacturers. It is envisaged that the automotive brand-to-brand scheme would be pursued within the framework of the Basic Agreement on AIC and the Preferential Trading Arrangements (PTA), though with added elements of flexibility. It covers passenger cars, commercial vehicles and two/three wheelers for both the original and replacement equipment market.
The approval of the Basic Agreement on ASEAN Industrial Joint Ventures (BAAIJV) by the AEM in November marked another watershed in ASEAN industrial cooperation. The AIJV scheme is, after the AIP and AIC schemes, the third major scheme of ASEAN industrial cooperation. As articulated in the preamble, the Agreement was established " to provide the guidelines and institutional framework within which the ASEAN Governmental machinery and the private sector ... may collaborate to identify opportunities, formulate programmes and design projects for pursuing joint ventures on the basis of mutual and equitable benefits for the member countries and increased industrial production for the region as a whole". Benefiting from the experience of the AIP and AIC schemes, the AIJV scheme incorporates many features designed to enhance its effectiveness. Chief of these are: free siting of projects by private investors, a minimum of only two participating countries in any promoted product-compared to four in the AIC schemes; and provisions for the suspension of PTA preferential rights by non-participating countries.
In the field of food, agriculture and forestry, the Agriculture and Forestry Ministers at their Fourth Meeting in October 1982 signed two important documents: the ASEAN Ministerial Understanding on Plant Quarantine Ring and the ASEAN Ministerial Understanding on Standardisation of Import and Quarantine Regulations on Animal and Animal Products. The first declared the intentions of all member countries to undertake various measures such as the practice of inter and intrastate quarantine and to follow the ASEAN pest risk analysis to combat the introduction and spread of plant pests in the region; and the latter was to establish standard regulations among ASEAN countries for the importation and movement of animals and animal products from countries within and outside the region.
In food security, it was decided on the basis of a study conducted by the Agriculture Development Planning Centre that the size of the Emergency Rice Reserve be maintained at its present 50,000 tons pending a further study. It was also decided to include maize, soybeans and sugar in the AFSR Food Information and Early Warning System in addition to rice. In food handling, a significant development in the year was the implementation of a Regional Collaborative Programme on Grain Post Harvest Technology Project.
In forestry, the Ministers adopted a plan of action for implementing the Jakarta Consensus on Forestry signed by the Ministers in their previous Meeting in August 1981. A Forest Tree Seed Centre was established in Thailand.
In energy cooperation, the Fourth Meeting of the AEM on Energy Cooperation in January 1983 made several important recommendations. In the field of coal, it was agreed that the ASEAN Coal Development Study should cover supply and demand of coal; logistics of distribution; acquisition of coal technology; and production costing and pricing.
On cooperation in the field of power utilities, it was agreed that cooperation be focussed on, among others, an ASEAN micro/mini-Hydro Information Exchange System; studies on inter-connection; studies on lightning and lightning outrage prevention; geothermal power development; continuing cooperation in rural and urban electrification; and on establishing common standards of electric power equipment. The ASEAN Secretariat was to monitor and make an inventory of developments on new and renewable energy sources.
The Energy Ministers further endorsed the in- corporation of a Supplementary Scheme to the ASEAN Council of Petroleum (ASCOPE)'s ASEAN Emergency Petroleum Sharing Scheme. The Emergency Scheme adopted by the AEM in 19 77 has not been put in operation because bilateral arrangements have in the past proved sufficiently effective. With the adoption of the Supplementary Scheme, ASEAN energy emergency arrangements are established on a firmer multilateral basis.
In the realm of trade liberalisation, various significant developments took place in the year under review. Under the PTA, another 25 items were exchanged at the Fourteenth AEM Meeting bringing the number of items on which preferences were exchanged under the matrix and voluntary approach to 8564. In the across-the-board tariff cuts the AEM at its Fourteenth Meeting decided to raise the import ceiling value to US$ 10 million based on 197-8 statistics with an exclusion list. It is expected that this decision will soon be implemented. Taking into account the overlapping of product coverage uder the different approaches, it is estimated that total PTA items as of 1 March 1983 exceeded 12,000 items.
A significant achievement in the year was the successful formulation of guidelines for the drawing up of PTA exclusion lists. The adoption of such common guidelines should check the natural national proclivity at lengthening such lists and increase the impact of future across-the-board tariff cuts. Another significant decision of the Fourteenth AEM Meeting was to deepen tariff cuts on non-food items under the PTA to a maximum of 50 percent.
In the realm of international trade and commodity issues, ASEAN participated in the GATT Ministerial Meeting in November 1982 and took a common position on nine priority topics. ASEAN also continued to play a constructive role in international fora on international commodity issues on the basis of the UNCTAD Integrated Programme for Commodities. A lack of desired progress in this area has however forced ASEAN to ponder on its basic strategies in international fora.
In the field of finance and banking, efforts continued to be made in the search for new sources of funding for ASEAN industrial projects and other programmes of cooperation as well as in devising new financial arrangements and instruments to promote intra-ASEAN trade. The ASEAN Customs Code of Conduct was formally signed by the Heads of ASEAN Customs Administration in Jakarta on 18 March 1983. The Code covers the basic principles and standards on customs valuation, classification, techniques and related matters governing intra-ASEAN trade. In insurance, the ASEAN Insurance Council, a private sector organization, launched an ASEAN Reinsurance Pool to facilitate an exchange of reinsurance business among ASEAN insurers.
In the field of transport and communications, the momentum of ASEAN cooperation has been maintained. Integrated Work Programmes, as first adopted in the field of Shipping and Ports, have now been formulated in all other areas of transport and communications and been integrated into a general ASEAN Integrated Work Programme on Transport and Communications.
With regard to the proposed establishment of an ASEAN Liner Service, it is expected that a preliminary report on its feasibility would be prepared by the Southeast Asian Agency for Regional Transport and Communications (SEATAC) for presentation at the Fifteenth Meeting of the AEM scheduled for October 1983.
In civil aviation, the relative calm following the resolution of ASEAN's participatory rights on international routes, first with Australia and then the United Kingdom, was broken by differences between ASEAN and the Federal Republic of Germany (FRG) on ASEAN's participation in the FRG market. The issue is the familiar one of protectionism. It is hoped that a satisfactory solution, along the lines of that achieved with Australia and the United Kingdom would soon be achieved.
Regarding the Submarine Cable Projects, the third segment linking Malaysia, Singapore and Thailand is still under construction while the fourth segment linking the Philippines and Thailand is in the planning stage.
Social, Cultural and Information Cooperation
To intensify and accelerate cooperation in the various fields of labour, the ASEAN Labour Ministers met biannually. The Fourth Meeting of ASEAN Labour Ministers, held in Singapore on 6-7 September 1982, decided to establish a Technical Working Group (TWG) to oversee all labour cooperation programmes and activities in between the Annual Labour Minister's Meetings. The TWG would also consider ILO matters and formulate ASEAN common stand on ILO issues as well as oversee the training programmes in the various fields of labour cooperation.
The Meeting agreed to continue the dialogue between the Asian and Pacific Labour Ministers and the International trade secretariats. It reminded the ILO to study how conflicts between trade secretariats and member countries could be averted. It also urged the ILO to give more autonomy to the ILO area of f ices in the region and gave support to the Asian Governments' draft protocol and the principles of distributing seats in the ILO Governing Board. I t aIso agreed in principle to the proposed project to establish an ASEAN Centre for Industrial Relations and to refer to the ASEAN Committee on Social Development (COSD) the detailed project proposal.
Cooperation in the field of social development within COSD continued on the basis of an integrated plan of action that covers the broad scope of projects and activities in this field of endeavour. This includes education, population, control of dangerous drugs, health and nutrition, natural disaster. Women's programmes continued to receive strong support. One notable development during the year was the reactivation of cooperative programmes on youth.
In the field of education, the ASEAN Development Education Project has been progressing satisfactorily and a mid-term programme evaluation is being carried out.
The ASEAN Heads of Population Programme (AHPP) held their Sixth - Meeting on 23 August 1982 in Jakarta. The ASEAN Population Coordination Unit (APCU) which serves as the Secretariat of the AHPP continued to monitor the implementation of the ASEAN Population Projects. It has relocated its Headquarters from Manila to Jakarta With effect from 1 August 1982.
In the field of cooperation regarding the prevention of drug abuse in ASEAN, an important step taken this year was the appointment of the ASEAN Narcotics Desk Officer at the ASEAN Secretariat in September 1982. This office was set up to serve as a central coordinating body for narcotics activities within ASEAN and strengthen cooperation in narcotics control among member countries.
In the field of health and nutrition, various programmes were formulated to strengthen technical cooperation among member countries.
To strengthen cooperation in mutual assistance in the event of natural disasters, the ASEAN Natural Disasters Centre was established on 22 March 1982 in the Philippines.
The ASEAN Women's Programmes (AWP) held the Second Meeting, in Bangkok, on 12-14 January 1983 and formulated seven projects; ASEAN Women's Programmes on Arts and Culture; Clearing House on Women in Development; the Establishment of the Network of ASEAN Women Vocational Training Programme; Population Development Project - Single Parent Family Aid Centre; Young Women in Population Development Programmes, Legal Literacy and Legal Aid, and Programmes for the Ageing and elderly.
The ASEAN Experts Group on Youth was established in 1983 and held its first meeting in Yogyakarta, Indonesia on 16-19 February 1983. it formulated five projects : Youth Development, Research and Information; Youth External Cooperation ; Youth Cooperation with Youth NGOs Youth Exchange Programme, and Youth Camps and related activities.
In the field of human resources development, an ASEAN Human Resources Development Project (AHRDP) was established. This comprises five sub- projects, one located in each member country as follows:
Indonesia :Centre for Vocational and
Extension services Training (CEVEST)
Malaysia :Centre for Instructors and
Advance skills Training (CIAST)
Philippines :Rural Development Programme
through Strengthening Agro Industrial
Livelihood Activities (KKK)
Singapore :Productivity Development
Project (PDP)
Thailand :Training Centre for Primary
Health Care (TCPHC)
On the Japan Scholarship Fund for ASEAN Youth, member countries have drawn up their respective 1982/1983 programmes. Application for scholarships, fellowships and training programmes have been forwarded to the respective coordinating agencies. The main thrust of the project is to help needy students in the rural areas, and to enable educational institutions to continually reinforce and contribute to the national development of member countries. These scholarships cover studies in the fields of medicine, dentistry, pharmacy, computer engineering and science.
Cooperation in culture and information has maintained steady progress with the implementation of various projects. Funded by the ASEAN Cultural Fund, the projects cover activities such as cultural exchanges, ASEAN studies, festivals, performances, exhibitions, traditional cultures, mass media, etc.
The Committee on Culture and Information (COCI), which is responsible for drawing up projects to be funded out of the Cultural Fund, has also implemented the approved "Basic Framework of Cooperation in Culture and Information" and related activities. Five programme areas have been drawn up by COCI for implementation, namely: Visual Arts, Performing Arts, Literary Works, ASEAN Studies, and Communication Media.
Science and Technology Cooperation
Cooperation in the field of science and technology was implemented on the basis of the ASEAN Plan of Action on Science and Technology.
In the field of food sciences, the Protein Project continues to make progress. The Project on Management and Utilization n of Food Waste Materials has been extended for another five years ( 1983 - 1988 ). The Food Technology R & D Project started in July 1 982 for a period of three years, the major objectives being to adapt, develop and apply appropriate technology for the development of food processing industries in ASEAN.
The Project on the ASEAN Climatic Atlas and Compedium of Climatic Statistics/Map of ASEAN was successfully finalised and a two-volume set containing the Climatic Atlas and Compendium of Climatic Statistics were presented to the Fifteenth Ministerial Meeting in Singapore.
The Project on the Environment has published "ASEAN- Heritage and Reserves" and finalised the Action Plan on Environmental Education and Training.
In the field of energy cooperation, ASEAN is pursuing projects on biomass for heat and power, energy conservation technologies, coal technologies and water pumping technologies.
