Australia agreed to provide additional funding for new projects, and for the extension of certain existing projects under the ASEAN - Australia Economic Cooperation Programme (AAECP). These projects are distributed among various sectors and provide important supplements to ASEAN's own capabilities and resources for the development of the region.

In the food, forestry, and agriculture sector, Australia agreed to provide A$ 2.5 million for Phase I of the ASEAN Forest Tree Improvement Center Project. Australia also agreed to extend the ASEAN Food Technology Research and Development Project for five years at an additional cost of A$ 4.2 million, and to contribute another A$ 100,000 for the implementation of the ASEAN Food Data Network under the ASEAN Food Habits Project.

Cooperation in the science and technology sector was enhanced with Australia's commitment of A$ 2.5 million for the Design Capabilities Component of the ASEAN - Australia Cooperative Programme in Microelectronics for a three-year period as well as for a Project Implementation Workshop to be held in Australia ;In mid-1986. Australia had also registered its interest in providing assistance for the ASEAN - Australia Project Proposal on Biotechnology, the Joint ASEAN - Australia Project Proposal on Materials Processing, and the Management of Science and Technology Programme.

Furthermore, ASEAN welcomed Australian support for the First ASEAN Science and Technology Week held in Kuala Lumpur in April ASEAN and Australia continued their co- operation in industry, minerals and energy with Australian agreement on a one-year extension of Phase I of the ASEAN - Australia Energy Cooperation Programme. Australia is examining the possibility of extending the ASEAN - Australia Energy Cooperation Programme. In addition, funds were made available by Australia for Phase A of the lpil lpil Project Component under the Prefeasibility and Feasibility Studies in Industry, Minerals, and Energy Project.

The ASEAN - Australia Joint Research Project (AAJRP), which was a major cooperatives undertaking that generated many useful studies on various aspects of ASEAN - Australia economic relations, was completed at the end of 1985. The Report of the AAJRP is now under consideration. In the area of ASEAN - Australia trade, senior trade officials of both sides held useful exchanges of views, and agreed that the volume of two-way trade should be expanded. ASEAN expressed concern on the consistent trade imbalances in Australia's favour, and requested Australia to improve market access for ASEAN export products.

ASEAN noted that while the new Australian System of Trade Preferences (ASTP) contained certain , positive elements, high margins of preference under the Scheme are still needed to maintain the competitiveness of ASEAN exports to Australia. ASEAN further expressed its concerns on proposed changes in the Australian Textile, Clothing, and Footwear (TCF) arrangements, and on Australian anti-dumping actions. ASEAN and Australia held discussions on Australia's new Foreign tax Credit system, during which ASEAN indicated that it hopes the new taxation scheme would not limit the growth of Australian investments in the ASEAN region.

While noting that the AAECP has grown considerably during the past ten years, and has contributed to the development of the Dialogue relationship, ASEAN and Australia agreed to jointly review the AAECP, in order to assess its achievements, to identify shortcomings and to improve future cooperation. The Joint AAECP review is scheduled to convene in mid-1986.