ASEAN Relations with Third Countries
ASEAN conducts dialogues with "third countries"
to seek support for ASEAN development programmes
particularly in the fields of trade
investment and finance.
Meetings are held alternately between the
region and the third country partner to review
the progress of projects and to develop new ones.
These fora are also utilized to discuss other
economic issues of mutual interest to ASEAN
and the dialogue partners.
Since the last Ministerial Meeting, ASEAN had
conducted its dialogues with Australia, New Zealand,
the European Community and the United
States of America. The following is an account of
what has transpired at these dialogues:
Australia
The Sixth Meeting of the ASEAN-Australia
Forum was held in Canberra on 14-15 April
1981. The Forum reviewed the progress made in
the projects under the ASEAN-Australia Economic
Cooperation (AAECP) and other areas of
cooperation.
The activities under the ASEAN Food Handling
Project had progressed with their completion
or near completion under Phase I. These activities
are in grains, horticulture, fish and livestock. It
was noted during the Meeting that the ASEAN
Food Handling Bureau (AFHB) of the ASEAN
Good Handling Project had been operational since
January 1981 with a total proposed budget of
A$ 2.8 million and that the Record of Understanding
for the Administration of the Bureau had
already been signed.
The ASEAN Protein Project has developed
various formulations of supplementary infant
food utilizing locally available raw materials. The
project has also developed a number of highly
nutritional snack products. The 100 tons or so of
Full Salt Soy Flour a month output of the
ASEAN Full Fat Soy Flour factory has been
distributed and used by ASEAN countries for the
development of high protein low cost food
products. The project is now aimed at expanding
the present studies to a level that can provide
sufficient information to industry regarding the
commercial potentials of the high protein products
to motivate industry to take over the
process at the commercial level.
A number of activities have been carried out
since October 1980, when the implementation of
the ASEAN Development Education Project
1980 and two in 1981 were held in such fields as
Special Education, Education Management Information
System, Teacher Education Reform, and
Work-Oriented Education for In-School and Out-of-School Youth.
A group of ASEAN consumer experts visited
Australia to study its consumer protection systems
in March 1980. From 30 September to 4
October 1980, an ASEAN Seminar on Consumer
Protection was held. The Seminar recommended,
among others, that the scope of the ASEAN
Consumer Protection Agency be extended to
include consumer information; consumer education;
product quahty; standards and testing;
research; and such other areas of interests.
The Food-Waste Materials Project was officially
initiated on April 1, 1980. It has the objective of
decreasing if not eliminating sources of pollution
by converting pollutants, through the use of
appropriate technology, into useful products.
Several studies and workshops are currently on
going on the processes for food-waste materials
utilization.
The seven projects under Phase II of the
ASEAN Population Programme are now at the
early stages of implementation. Most of the
projects were only implemented in September/
October 1980. It is also noted that the ASEAN
Population Coordination Unit (APCU) which became
operational on 16 June 1980 has been
instrumented in facilitating the implementation of
the projects.
At the first meeting of the Joint Steering
Committee for the Joint Research Project, held in
Canberra on 13 March 1981, seven areas of
research were identified as having high priority
within the project with another six research areas
to be pursued later when resources became
available. The priority areas include bilateral
economic relations, trade in services, trade in
manufacturers, foreign trade and food security,
minerals and energy trade and minerals processing,
labour market behaviour, and shipping.
The research areas in the fields of non-conventional
energy were proposed by ASEAN-Australia
responded could assist only in the areas of solar
electric power system; solar drying; bioenergy
conversion (biogas, alcohol, energy farming and
pyrolysis), coal technology and wind energy. It
was agreed that further discussion at the technical
level before definite decisions on the scope of the
projects are made. A workshop on coal utilization
in May 1981 in Australia to be sponsored by the
Australian Government for ASEAN was announced.
A combined ASEAN/Australia Study Team
would conduct a pre-feasibility study on the
establishment of a Common Regional Animal
Quarantine Centre in ASEAN after which further
discussion on the project will be held.
The ASEAN Food Technology Research and
Development Project aims to improve the quality
of life in ASEAN countries through the adoption
of appropriate food processing technology. The
proposed budget for the project is A$ 1.5 million
for three years. Australia suggested that funding
for the initial meetings of the project could be
drawn from 1981/1982 funds of the Protein
Project or Consumer Protection Agency Project
until the project is proposed for inclusion in the
1982/83 budget.
On the ASEAN proposal for Australia to
establish a US$ 5 million fund for pre-feasibility
and feasibility studies of possible regional projects
in industry, minerals and energy, Australia
responded that it prefers to consider specific
project proposals, in which such questions as
timing, private sector involvement, national or
regional inputs, and the relationship of the
feasibility study to implementation were dealt
with,
Australia agreed to the proposal that funds
available for a second ASEAN-Australia Industrial
Cooperation Conference in 1981/82 be used for
an expansion of bilateral investment promotion
projects as well as a meeting in 1982/83 between
leaders of delegations to COIME and leading
Australian industrialists on possible joint regional
venture projects.
On trade, ASEAN acknowledged the introduction
of developing country preferences on
some textiles, clothing and footwear but indicated
that it was too early to assess the impact of
this decision on ASEAN experts of these products.
ASEAN also noted that the import surcharge
of 121/2% would not apply to clothing and
footwear products from 1 January 1982. The
holding of an Australian-sponsored Third ASEAN
Trade Fair in Australia was also agreed upon.
The Forum also welcomed the establishment of
the ASEAN-Australian Business Council and
agreed that cooperation between ASEAN and
Australian private sectors is an important complement
to cooperation at the Government level.
New Zealand
The Fifth ASEAN-New Zealand Dialogue was
held in Manila on 26-27 March 1981. The
Dialogue reviewed current projects Projects
awaiting New Zealand response and possible
projects for future cooperation.
The project on the Survey of End Uses of
Timber is expected completed in 1977. An
update is being requested by ASEAN. New
Zealand responded that most of the data for the
revision and update of the Survey has been
collected and that the relevant New Zealand
authorities are checking the material for finalization
of the report which is expected to be
completed by August 1981.
In response to ASEAN's request to continue
the funding of the ASEAN Fellowship Program at
the Institute of Southeast Asian Studies which
expires in 1981, the New Zealand side agreed to
seek approval for funds for the next five years at
about the same level as currently approved.
The Veterinary Administration Development
Program (VADP) now known as the Livestock
Development Program has successfully held four
workshops with a fifth one scheduled in Thailand.
An ASEAN study group was formed in
1979 to survey New Zealand's Brucellosis Education
Program and Veterinary Laboratory System.
ASEAN requested New Zealand to make a
survey of the incidence of Brucellosis in ASEAN
and help formulate a control program of the
disease.
A major review of the Afforestation Project
will also take place in August 1981. A review
team will be asked to consider the levels of
training which the ASEAN countries consider to
be appropriate to meet ASEAN needs.
The implementation of Phase I of the ASEAN
Regional Dairy Training Centre Project is well
under way. New Zealand agreed in principle to
determine the role and function of the Training
Centre in order to serve the needs of the ASEAN
member countries in Phase II of the project.
With regard to Research and Development of
Ferrocement, New Zealand proposed to have a
workshop/seminar on the uses of ferrocement to
be held in Indonesia or Malaysia. New Zealand
will also have a New Zealand adviser give a series
of lectures on the use and development of
ferrocement.
An exchange of views was held on the possibilities
of future cooperation on energy, investment,
shipping and aviation. In regard to ASEAN's
proposal for assistance in research and development of non-conventional sources of energy, the
New Zealand side responded that, while they had
no significant expertise in solar or wind energy
utilization, they were interested in the possibility
of providing assistance on bio-energy, natural gas
technology and micro-hydro energy.
Japan
The Fifth ASEAN-Japan Forum is tentatively
scheduled for August 1981 in Singapore. The
Fourth Forum was held in Tokyo on 21-23 May
1980.
In the meantime, Japanese Prime Minister
Suzuki visited ASEAN countries in January 1981.
During the visit, Japan pledged further assistance
to ASEAN particularly in the area of human
resources development. Specifically, the intention
is to set up a Human Resources Development
Project which would include the establishment of
a national centre in each ASEAN country.
Towards this end, the ASEAN member countries
have decided on the project areas to be presented
to Japan. They are as follows:
Indonesia Development of skills for small
and medium enterprises. This shall
pertain not just to rural development
but shall encompass also
manufacturing, trade, services,
transport and other fields of activities.
Malaysia Sub-engineering skills in gas power
production, steel industry and
heavy industry and computer science.
Philippines Project in agro-industries, small
and medium enterprises, rural
development and manpower development for the construction industry.
Singapore An institute for continuing occupational development, with
particular emphasis on the use of
audio-visual aids in retraining
workers.
Thailand A natural gas and petrochemical
training and research centre, a
high-land agriculture development
and research centre and a primary
health care training centre.
Also, the Agreement on the Establishment of
the ASEAN Promotion Centre on Trade, Investment
and Tourism in Tokyo, Japan has been
signed between the ASEAN Ambassadors in Tokyo
and the Japanese Foreign Minister. The
Agreement has been ratified by ASEAN member
countries.
On the ASEAN Industrial Projects, an understanding
was reached between Japan and Indonesia concerning an additional Japanese loan for
the ASEAN Urea Project (Indonesia). The terms
and conditions of the financing package for the
ASEAN Urea Project (Malaysia) are being finalized.
On the Rock Salt Soda Ash Project (Thailand)
decision has been made on the location of
the site of the project in the area near Satahip.
In the field of science and technology cooperation,
the Second Joint ASEAN-Japan Experts
Meeting on Cooperation in Technolocy Transfer
and Energy was held at the ASEAN Secretariat in
Jakarta on 26-27 September 1980. As a follow
up to this Second Joint ASEAN-Japan Experts
Meeting, ASEAN experts also held a meeting on
the establishment of ASEAN Centres for Appropriate
Technology (ACAT) for cooperation with
Japan at the ASEAN Secretariat, Jakarta on
23-24 October 1980.
Twelve cultural and sixteen international projects are currently being implemented under the
ASEAN Cultural Fund for 1980-81.
With regard to Japan Scholarship Fund for
ASEAN Youth, the first annual installment of
US$ 1 million for the Japan Scholarship for
ASEAN Youth was remitted to the ASEAN
Secretariat on 25 June 1980. The Secretariat in
turn transmitted the share of US$ 200,000 to
each member country.
European Community
The First Meeting of the ASEAN-EEC Joint
Cooperation Committee (JCC) as provided in the
ASEAN-EEC Cooperation Agreement was held in
Manila on 28-29 Novemeber 1980. The Meeting
discussed a number of cooperation projects under
the agreement, particularly in the fields of commercial
cooperation, economic cooperation and
development cooperation. The Meeting also
adopted the Rules of Procedure of the JCC.
In the field of commercial cooperation, the
Committee adopted the 1981 trade promotion
programme for ASEAN to be financed by the
Community. A Working Group on Trade was also
established to facilitate consultations between the
Community and ASEAN on trade issues. The
Committee reiterated its support for the early
realization of the Integrated Programme for Commodities, in particular, the early establishment of
the Common Fund. ASEAN expressed concern
regarding ASEAN exports of textiles, monochrome
TV sets, vegetable oils, plywoods and
compressors to the Community, and particularly
on future arrangements beyond the present Multi-Fibre
Arrangement (MFA). With regard to the EC
GSP Scheme, the Committee noted the Scheme
had been extended for another ten years. Note
was taken of ASEAN requests for further improvement
of the Scheme.
With regard to Economic Cooperation, industrial
conferences will be organized on a sectoral
basis for the priority being given chemical industries,
engineering industries, energy industries,
electrical and electronic industries and resource
based industries.
A programme of cooperation in the field of
energy, environment, and the development of an
infrastructure for science and technology cooperation
was also established. ASEAN and the EEC
will cooperate in the following areas:
a) Non-conventional energy;
b) Environmental protection;
c) Science and technology infrastructure; and
d) Agricultural and natural resources.
The Community stated that it will increase its
financial support to ASEAN regional projects. It
will continue to support ASEAN projects like the
Regional Collaborative Programme on the Post- harvest
Technology of Grains; Regional Study on
Commercialization of Timber Resources; and the
Aquaculture Development Programme. It also
expressed interest in extending assistance to the
study on container terminal operation on
ASEAN Ports; a seminar (cum study tour) on
Land transportation; the updating of the Regional
Survey on Transport; integrated pest control
program; a regional project for fisheries resource
evaluation; and the COIME Interim Technical
Secretariat.
In the field of science and technology, ASEAN
and EC have agreed on a two-year programme
wherein the EC will provide a sum of 2.8 ECU
for fellowships, provision of experts, seminars
and studies.
Possible areas of cooperation in social development
and culture will be explored within the
competence of each party. Possible areas on
insurance cooperation will also be explored.
The Community will also assist ASEAN in
securing funds for large scale industrial Projects
from the Grouping of the Community's Public
Development Finance Institution (INTERACT).
A preliminary seminar on access to European
capital markets was held in January 1981 for
ASEAN officials in Europe. The seminar will be
held in October 1981.
United States
The Third ASEAN-US Dialogue was held in
Manila on 10-12 September 1980. The Dialogue
covered the developments on the fields of commercial
cooperation, scientific and technological
cooperation, social and cultural cooperation including
education, and development cooperation
in agriculture and forestry.
The Project Agreement on the Agricultural
Development Planning Centre (ADPC) was signed
between Thailand and the US in August 1980.
The project has a budget of US$ 3 million for
five years beginning 1980 and is located on the
campus of Kasetsart University in Bangkok.
The Project Agreement on the ASEAN Plant
Quarantine Project was signed in September
1980. The sum committed by the US for the
project amounts to US$ 5.4 million over a five- year
period.
With regard to the Watersheld Management and
Conservation Programme, the ASEAN proposal
on the programme is still being reviewed by a
team of US Dept. of Agriculture advisors. The
budget request for the programme is US$ 5
million for five years beginning 1981.
The US-sponsored Asian Institute of Technology
(AIT) Scholarship Programme for ASEAN
commenced in June 1980 with a funding of
US$ 3,125 million. The number of academic
courses were increased for the September 1980
and January 1981 school terms allowing ASEAN
to nominate ten candidates from each country.
On cooperation in non-conventional sources of
energy, the US indicated that it was prepared to
assist ASEAN in the areas of solar, wind,
biomass, mini-hydro, geothermal and coal, energy;
energy conservation; and energy planning methodologies.
ASEAN also accepted that US offer of
US$ 44,000 for short-term energy projects. Ten
scholarships were also reserved exclusively for
energy technology studies under the existing AIT
Scholarship Program. A consultative group on
energy, composed of senior officials to exchange
views on energy problems and policies and to
promote ASEAN-US cooperation on energy, was
also proposed by the US.
A visit of US academics to the ASEAN region,
with the aim of generating interest and encouraging
the development of a curriculum on Southeast
Asian studies in American universities, was held
from 15 June to 15 August 1980. The visit is
part of the ASEAN-US cultural cooperation
programme.
On the ASEAN Scholarship Program for Tropical
Medicine and Public Health, the US informed
that the first quarter of 1982 would be the
earliest time that it could fund the project.
On the area of trade and investment, ASEAN
and the US agreed to establish an Economic
Coordination Committee associated with the
ASEAN Washington Committee. The Committee
shall function as a forum for discussing economic
issues of mutual interest in between dialogues to
effectively carry on the dialogue on economic
matters.
ASEAN has been designated by the US as a
regional association for the purpose of availing of
the commutative rules of origin of the US GSP
with effect from 31 March 1981.
ASEAN also exchanged views with the US on
international economic issues such as on the
Common Fund, International Commodity Agreements,
the MTN, and ECDC. ASEAN also reiterated
its positions vis-a-vis ASEAN-US trade issues
such as Protectionism and the US GSP, specially
on the product coverage, safeguard mechanism
and rules of origin of the latter.
Canada
During the year under review, ASEAN and
Canada signed two Memoranda of Understanding.
The Memorandum of Understanding on the
ASEAN-Canada Forest Tree Seed Centre Project
was signed in Ottawa on I May 1981 by the Thai
Foreign Minister on behalf of ASEAN and by the
Canadian Secretary of State for External Effairs
on behalf of Canada. The Memorandum of Understanding
on the ASEAN-Canada Fisheries Post
Harvest Technology Centre Project was signed in
Manila on 21 May 1981 by the Philippine
Foreign Minister on behalf of ASEAN and by the
Canadian Ambassador in Manila on behalf of
Canada.
ASEAN member countries are presently considering
the proposed Industrial and Technical
Cooperation Agreement with Canada.
UNDP/ESCAP
A UNDP/ESCAP inter-country programming
mission was fielded to ASEAN in April 1980.
The mission had discussions with the national
coordinating authorities and with the sectoral
ministries and departments of the five member
countries of ASEAN. The mission also met with
the ASEAN Secretariat.
The mission had the benefit of briefings from
the Secretariat of ESCAP and from the Regional
offices of UNESCO, ILO, FAO, ICAO, WHO and
UNICEF at Bangkok and Manila. The mission
also visited the Asian Development Bank.
The views of the countries were ascertained
with respect to the ongoing programme, identification of
priority areas for the next cycle and
activities in the ASEAN framework of inter-country
economic and social cooperation that
could suitably be assisted by UNDP. Modalities of
implementation were also discussed with the
countries.
The mission recommended that UNDP inputs
be provided to support a programme of ASEAN
activities for inter-country cooperation in transport
and communications; social development;
industrial cooperation; science and technology
development; agriculture; and trade.
An inter-governmental meeting of ASEAN
National Secretariats was held with UNDP/ESCAP
in Bangkok on 21 July 1980. The ASEAN
Secretariat was invited to attend the meeting.
After the discussion of the ongoing ASEAN
inter-country programme and planning for the
next cycle, the representatives of the countries
decided to bring the results of the meeting for
consideration of the Tenth Meeting of the
ASEAN Economic Ministers in Bangkok during
24-25 October 1980.
The Economic Ministers approved a revised
programme with additional activities derived from
the 1977-1981 programme and other new proposals.
The revised programme is in the form of
groups of activities corresponding to each of the
ASEAN Committees on Trade and Tourism;
Transport and Communications; Industry, Minerals
and Energy; Science and Technology; Food,
Agriculture and Forestry; Social Development;
Finance and Banking; and Culture and Information.
In conveying their response to UNDP, the
Economic Ministers stressed inter-alia that the
projects should reflect ASEAN regional needs and
interests and should emanate from ASEAN as a
regional grouping. Furthermore, the Economic
Ministers requested that UNDP/ESCAP work
closely with the relevant ASEAN Committees
during the project formulation and approval
process which was not possible before. The
Project proposals would be implemented in the
order of priority determined by ASEAN and
conveyed to UNDP/ESCAP at the review meetings.
Based on the consultation process, it is recommended
that for the next cycle 1982-1986 the
inter-country programme for ASEAN be composed
of activities in the following areas:
Trade and Tourism $ 1,000,000
Transport and Communications 2,000,000
Industrial Cooperation 750,000
Science and Technology Development 800,000
Food, Agriculture and Forestry 1,000,000
Social Development 1,400,000
Finance and Banking Cooperation . 650,000
Cultural and Information 350,000
_______________
Total = $ 7,950,000