In April 1986, an ASEAN meeting was held in Kuala Lumpur, 24 - 25 April 1986, to prepare for the Eighth ASEAN - Japan Forum to be held in Tokyo, 23 - 24 July 1986. Some of the main areas where ASEAN feels there is a need for a review in ASEAN - Japan cooperation are in economic, trade, investment and transfer of technology. Structural improvements particularly in the field of trade can lend to more meaningful cooperation.

ASEAN's emphasis has been for greater Japanese cooperation for a more balanced trade structure, improved market opening measures taking into account ASEAN interest instead of focussing only on the interests of developed countries, and better market access for ASEAN exports, particularly for semi-manufactured and manufactured products. The latter can be effected by improving the Japanese GSP Scheme and solution of problems related to discriminatory tariffs, quantitative restrictions, stringent standard procedures and requirements on products of major export interest to ASEAN.

The problems of commodity issues, the declining trend of investment flow from Japan to ASEAN, the need for transfer of technology and research and development were also areas which engaged ASEAN in its relations with Japan during the year.

The Fourth ASEAN - Japan Joint Steering Committee Meeting of the ASEAN Regional Studies Promotion Programme (ARSPP), held in Tokyo 'in March 1986, reviewed ASEAN - Japan Cooperation in regional research. Activities were decided on for the programme which ends in March 1987.

The second research project of the ARSPP entitled "Effective Mechanism for the Enhancement of Technology and Skills in ASEAN" had been completed and the report published. The third research project entitled "Industrial Restructuring and Adjusrnent for Japan - ASEAN Investment and Trade Expansion" would be completed by 1 5 August 1 986 and the report is to be published by 1 5 November 1986.

In view of budget constraints, the proposed fourth research project entitled "Structural Trade Imbalances and ASEAN - Japan Cooperation" would be carried Out as a minor project involving the preparation of a conceptual paper.

As to the activities for the final year of the programme, the Meeting agreed to prepare a conceptual paper on "ASEAN - Japan Relations into the 1990's, to organize two symposia to review the ARSP Programme and to consider whether there is a need for its extension.

The issue of the future of the ASEAN Promotion Centre for Trade, Investment and Tourism in Tokyo (APC) was high on the agenda of ASEAN - Japan relations during the year under review. After two meetings held in August 1985 and March 1986 between ASEAN and Japanese officials to discuss the future of the APC, both sides agreed on the need for structural and operational changes within the framework of the APC Agreement, Both sides also agreed that the Permanent Exhibition Hall of the APC be moved to a more commercially strategic location which is easily accessible and with improved management would lead to more effective promotion of ASEAN exports to Japan.

Social cooperation was underlined with Japan's provision of US$ 1 million to the Japanese Scholarship Fund for ASEAN Youth following the Exchange of Letters between the Japanese Ambassador and the Secretary-General of the ASEAN Secretariat, on behalf of ASEAN, on 13 June 1986.