INRODUCTION


The year 1988 - 1989 could be characterized as another period of follow-up actions to further promote and strengthen ASEAN cooperation in line with the directions and guidelines laid down by the Third Meeting of the ASEAN Heads of Government. ASEAN activities under the purview of various ASEAN Committees and their related organs have progressed smoothly and satisfactorily.

The year under review also witnessed greater participation by the private sector in ASEAN cooperative endeavours. Significantly, a sense of fresh and positive outlook was injected into the various dialogue relationships so as to make the overall dialogue more dynamic and fruitful to all the parties concerned. Conscientious efforts were made to further enhance the efficacy and efficiency of ASEAN cooperation. Overall, ASEAN has satisfactorily maintained the impetus initiated by the Third Meeting of the ASEAN Heads of Government by turning new ideas into concrete steps and also consolidating the existing cooperative measures.

ASEAN has also strengthened the idea of ASEAN - Pacific Cooperation of Human Resources Development (APC-HRD) by putting an end to the two year moratorium on the APC-HRD Programme, due to the decision on this matter by the Twenty-First ASEAN Ministerial Meeting, Bangkok, July 1988. Officials from ASEAN countries and dialogue partners concerned convened two meetings of th Ad-Hoc Working Group on APC-HRD on 7 March 1989 and 19 May 1989 respectively in Jakarta. The meetings made some progress in reviewing the existing projects and assessing the new ones.

In the field of finance and banking, the policy initiatives embodied in the Programme of Action endorsed by the Third Meeting of the ASEAN Heads of Government were further solidified and concretized. The ASEAN Reinsurance Corporation, a major private sector undertaking aiming to promote intra-ASEAN trade in reinsurance business was incorporated in Singapore on 17 December 1988 and expected to commence its commercial operations in the latter part of 1989. Its initial authorized capital was changed from S$ 20 million to S$ 30 million. Progress was also made in promoting and facilitating the use of ASEAN currencies for the intra-ASEAN trade while the project to explore and assess the possibility of extending their use for intra-ASEAN investment has been formulated and submitted for UNDP funding, Furthermore, the training programmes to enhance the efficiency of the tax and customs administrators as well as the insurance commisions are now being implemented.

The Period under review witnessed activities of ASEAN member countries in implementing the new commodity classification system or the Harmonized System. Brunei Darussalam was making arrangements for the conversion from the CCCN System to the Harmonized System, which has become effective in other member countries. Also as an effort to further promoting trade flows, the ASEAN Customs Authorities were presented with the private sector views on customs operations and procedures. The role of Customs Administrators in facilitating the ASEAN Preferential Trading Arrangement (PTA) received serious attention of the authorities concerned with a result that member countries decided to carry out a study on their respective import and export procedures.

Member countries have continued to use the Intra-ASEAN Model of Double Taxation Convention as a guidance in negotiating with third countries for the avoidance of double taxation with satisfactory results. Furthermore, COFAB as the body assigned to monitor the ASEAN-Japan Development Fund (AJDF) has established a framework to oversee its implementation and utilization, both for loan and equity portions of the Fund. To further tap long-term capital from international sources, the ASEAN Banking Council took yet another initiative through the establishment of the ASEAN Fund Limited, a US$ 150 million close-ended fund to be invested in companies operating in ASEAN. Launched successfully in November 1988, the Fund provides an opportunity for the international investors to participate in the development of ASEAN economies.

A noteworthy progress in the field of food, agriculture and forestry was the approval of the revised regulations for "Importation of Recreational Animals and Zoo Wild Animals" by the Tenth Meeting of the ASEAN Ministers on Agriculture and Forestry held in Kuala Lumpur in October 1988. The revision of the aforesaid regulations was made as a follow up action to the Ministers' agreement on "Standardization on Import and Quarantine Regulations on Animals and Animal Products".

In forestry, the ASEAN - New Zealand Afforestation Project (ANZAP) located in Tarlac, Philippines has been successfully completed. As an offshoot of that project, the Philippines is now engaged in a bilateral project with New Zealand, known as the "RP-New Zealand Bukidnon Industrial Tree Plantation Project". The said project aims to establish 14,000 hectares of commercially viable and sustainable forest plantation in Bukidnon that will provide an alternative wood resource to the rapidly depleting indigenous timber supply and create long-term income earning opportunities for the local inhabitants.

To further enhance cooperation in this field, the ASEAN Ministers on Agriculture and Forestry endorsed the proposal to establish the ASEAN Corporation in Food, Agriculture and Forestry which would promote national and ASEAN interests; seek greater market share for ASEAN products; provide a vehicle for ASEAN private sector initiative supportive of regional development and encourage the flow of investment in food, agriculture and forestry. The Ministers also endorsed a number of new project proposals which include projects on Integrating Farm Mechanization into the Agricultural Extension Services in ASEAN Countries (FARMEX), ASEAN Regional Programme for Farm Women in Agriculture Development, and ASEAN Goat and Sheep Development Programme.

In fisheries, the private sector took an active part in the regional cooperative programmes marking a significant agenda of their involvement in ASEAN cooperation. In December 1988, a "Fisheries Forum� was successfully convened in Jakarta, in which both ASEAN public and private sectors representatives participated. The Forum agreed that in order to accelerate the development of the fisheries sector in the region, a number of joint programmes of activities should immediately be implemented. The private sectors also supported the establishment of ASEAN Fisheries Consultative Body for a more effective coordination of the activities.

The Committee on Industry, Minerals and Energy (COIME) held its Thirtieth, Thirty-first and Thirty-second Meetings in Manila, Bangkok and Baguio City on 9-11 August 1988, 1-3 February 1989 and 7-9 June 1989, respectively. As a follow-up on the implementation of the decisions of the Third Meeting of the ASEAN Heads of Government held in Manila in December 1987, the meetings reviewed the progress of the ASEAN Industrial Joint Venture (AIJV) programme and the prospects and approaches to generating more projects under the programme particularly in the light of the new incentives and privileges available thereunder. Exchange of information on national industrial policies and plans have likewise been started again in line with the Third Meeting of the ASEAN Heads of Government mandate.

Meanwhile deliberations in COIME also resulted in the signing, by the ASEAN Economic Ministers (AEM), of a Memorandum of Understanding (MOU) on Brand-to-Brand Complementation on the Automotive Industry under the Basic Agreement on ASEAN Industrial Complementation (BAAIC). Actual implementation of the terms of the MOU took place with the recent approval of five brand to brand complementation schemes or packages.

In the energy fields meetings by the ASEAN Economic Ministers on Energy Cooperation, (AEM-EC) have been held yearly to foster and promote energy cooperation among ASEAN Member Countries. In 1988, the Seventh Meeting of the AEM-EC was held in Brunei Darussalam and in June 1989 the Eighth Meeting was held in Kuala Lumpur, Malaysia. The Eighth Meeting of the AEM-EC again reaffirmed the need to cooperate closely on energy matter so as to use energy sources efficiently. The Meeting focussed on cooperation on the utilization of the gas pipeline projects for the mutual benefit of the member countries concerned. To date, cooperation has been achieved in the areas of power utilities, coal, and new and renewable sources of energy, as well as those contained in the two Agreements, namely, the ASEAN Energy Cooperation Agreement and the ASEAN Petroleum Security Supply Agreement. The ASEAN - Energy Management Training and Research Centre (AEEMTRC) located in Jakarta was officially inaugurated on 8 November 1988. The AEEMTRC is aimed at strengthening cooperation among ASEAN countries and between ASEAN and the European Community (EC) in the field of energy through appropriate energy management to secure energy supplies for economic and social development. The AEEMTRC will undertake such activities by organizing exchange of research results and energy researchers, supporting energy research activities, and training energy planners and experts of the ASEAN countries. Meanwhile, 2 workshops on energy management related subject have been conducted at the Centre and a third one is scheduled to be held in Kuala Lumpur in July 1989.

Recognizing the important supporting role that could be played by the transport and communications sector in accelerating growth and development, the Committee on Transportation and Communications (COTAC) . undertook activities to implement the various recommendations of the ASEAN Economic Ministers (AEM) endorsed by the Third Meeting of the ASEAN Heads of Government in 1987 which provided new directions for the orderly development of a more efficient and improved ASEAN transportation and communications services. Various measures were adopted to ensure the speedy implementation of the recommendations such as urging the Sub-committees under COTAC to play a leading role in translating the initiatives into practicable programmes and specific -projects to attain their objectives, and persuading the World Bank, Asian Development Bank and other international organizations to provide assistance for the realization of COTAC projects. The private sector was also urged to play a more active role to complement efforts undertaken by the ASEAN Governments under the ASEAN framework.

In the area of shipping, further progress was made in the establishment of the Brokers Telegraph System, Inter-ASEAN Bulk Pool System and Point to Point Shipping Services while further steps are being taken to strengthen the existing Freight Booking and Cargo Consolidation Centres and to establish new ones to enable ASEAN Shippers to obtain the best possible terms. Assitance from the World Bank is also being sought to implement the proposed ASEAN Transportation Network Project, which will involve the strengthening of the existing modes of transportation system and the establishment of a new road/ rails/shipping/ferry/air links. The successful implementation of these measures would further enhance ASEAN economic cooperation as, a whole and eventually increase the contribution of this sector in the regional growth and development process.

Marked progress was made in implementing the ASEAN Manila Summit decisions to enhance intra-ASEAN trade through improvement of the PTA (Preferential Trading Arrangement) by increasing the number of PTA items and further deepening of Margin of Preference (MOP) on the existing PTA list. With the completion of the 1988 PTA programme, 1679 items have been removed from the Exclusion Lists and introduced into the PTA List with a minimum MOP of 25%, thus bringing the total PTA items to 14,462. Furthermore, 3261 items from the existing PTA list would be enjoying deepening of MOP. Upon the completion of the 1989 programmes, another 335 items from the Exclusion Lists will have been introduced into the PTA List and 2848 existing PTA items will enjoy furhter deepening of MOP.

On the implementation of the Summit decision of Standstill and Roolback of Non-Tariff Barriers, member countries (except Brunei Darussalam and Indonesia) have submitted 70 requests for rollback of NTBs for negotiations of which preliminary negotiations for some NTBs are underway. It is expected that over the next few COTT meetings, some of these NTBs would be rolled back.

On intra-ASEAN cooperation in the field of commodities, COTT has set up an Ad-Hoc Working Group on commodities to consider ways and means to implement the eight-point new initiatives decided by the Third Meeting of the ASEAN Heads of Government. COTT has adopted the guidelines which form part of the overall plan of action to implement these initiatives. Following this, ASEAN member countries have submitted their lists of commodities of priority interest to them and have also agreed to the division of work to implement the plan of action. COTT has also agreed to the concept and functions of the ASEAN Data Bank on Commodities (ADBC) and that its establishment should be on a step by step approach. As a step to examine further the requirements of the ADBC, a management and computer experts group would be established, and that the ASEAN Secretariat was asked to look into the financial requirements and terms of reference for this group.

The Twentieth Meeting of ASEAN Economic Ministers held in Pattaya, Thailand in October 1988 endorsed the recommendations of the Twenty Fifth COTT Meeting on joint approaches to the international commodity issues, namely the anti-tropical timber campaigns, the farm subsidies offered by the major developed countries, the anti-tropical vegetable oil campaign and the establishment of the Common Fund. The Meeting also endorsed that an ASEAN Ministerial delegation would be organized to counter the anti-tropical timber campaign depending on the seriousness of the situation.

Following the signing of the Agreement on the Establishment of the ASEAN Tourism Information Centre (ATIC) on 26 September 1988 and the subsequent ratification of the Agreement by the six ASEAN countries, the Centre, located in Kuala Lumpur, has become operational. ATIC, besides being an administrative arm of the Sub-Committee on Tourism (SCOT) and an information centre on ASEAN tourism, will undertake promotional activities to vitalize intra-ASEAN travel, thus increasing the flow of tourists among the ASEAN countries as well as attracting more foreign tourists into the region.

Forward-looking attitude to the Third Meeting of the ASEAN Heads of Government was made evident again in the field of ASEAN cooperation in science and technoloqy. This cooperation reached another milestone when the Fourth Meeting of the ASEAN Minister for Science and Technology held in Manila in January 1989 approved the ASEAN Plan of Action on Science and Technology and agreed to initiate the ASEAN Science Fund with seed contributions from member countries amounting to US$ 50,000 Per member country. The ASEAN Plan of Action on Science and Technology, which involves a restructuring of the subsidiary bodies of the ASEAN Committee on Science and Technology (COST). calls for: the implementation of joint regional research and development projects; establishment of regional research networks, network-like linkages,. centers of excellence, and science parks; operation of pilot and demonstration plants; development of human resources and dissemination of information.

The ASEAN Committee on Science and Technology continued to make progress in enhancing ASEAN cooperation in science and technology. The ASEAN Food Conference, with the theme "Food Science and Technology in Industrial Development", and the Second ASEAN Science and Technology Week, with the overall theme of "New and Emerging Technologies in ASEAN". were successfully held in Bangkok in October 1988 and in Manila in January 1989 respectively. Project feasibility studies for joint regional research and development projects in the areas of food science and technology, biotechnology, energy, microelectronics, and marine sciences were conducted for Phase II of the ASEAN-Australia Economic Cooperation Programme. In the environmental field, it has been agreed that a common ASEAN stand on sustainable development will be adopted by ASEAN respresentatives in the governing bodies of U.N. agencies, in line with the Manila Declaration of 1987. In brief, ASEAN cooperation in the field of science and technology has been serving as an unassuming but solid basis for ASEAN prosperity relying on both innovation and practicability.

During the year under review, the ASEAN Committee on Culture and Information (COCI) successfully implemented a total of twenty-six projects. A total sum of US$ 2,123,082 was disbursed to member countries for the implementation of these projects. This amount was about US$ 700,000.00 more than the expenditure during the preceding year. The improved financial situation was partly a result of better financial monitoring and supervision by member countries which had contributed to some saving from projects implementation. As in previous years projects under the ASEAN COCI were mainly in the four major areas: visual and performing arts, literary,, and ASEAN studies, print and interpersonal media, radio/TV/film and video. ASEAN COCI also adopted a strategy that it would coordinate its activities with ASEAN Sub-Committee on Tourism in ASEAN's efforts to promote the "Visit ASEAN Year" on VAY 1992. This was a significant move in the overall coordination of ASEAN activities so as to achieve maximum efficiency.

In the year under review, the Committee on Social and Development (COSD) continued to pursue the implementation of projects in a wide range of areas including Population, Health and Nutrition, Youth, Women and Labour. The highlight of ASEAN cooperation on labour was the 7th ASEAN Labour Ministers Meeting (ALMM) held on 13 - 14 October 1988 in Bali, Indonesia. The ASEAN Labour Ministers discussed and exchanged views on, among others, the increasing protectionists barriers and practices which adversely affect industrial relations, employment and productivity, as well as laying down broad guidelines for future collaborations and cooperation among ASEAN member countries in the field of Labour.

The year 1989 saw the continued close cooperation and rapport among the ASEAN member countries in their concerted efforts to prevent and control the drug menace in the region.

Guided by the Five-Year Programme of Action endorsed and adopted by the 11th Meeting of ASEAN Senior Officials on Drug Matters (ASOD) and the Comprehensive Multidisciplinary Outline (CMO) in future drug activities adopted by the UN International Conference on Drug Abuse and Illicit Trafficking (ICDAIT) in 1987, member countries have been formulating regional and domestic activities and plans of action to check the flow of illicit drugs as well as the abuse of drugs in the region with vigour. And as a result of the 12th ASOD held in Bangkok on 23 - 29 May 1989, member countries were determined to improve the implementation of drug-related projects by adopting appropriate measures.

With regard to the private sector participation in ASEAN Meetings and Activities, the 5th Meeting of the 22nd ASEAN Standing Committee, Bandar Seri Begawan, 23 - 25 May 1989 considered and adopted the amendment of the revised Guidelines on Private Sector Participation in ASEAN Meetings and Activities proposed by the ASEAN Secretariat with a view to facilitate and promote the role of private sector particularly in the dialogue process.

The year under review witnessed another rotation of the ASEAN coordinatorship of dialogue countries, taking effect from the Post Ministerial Conference (PMC) of the Twenty-First ASEAN Ministerial Meeting in July 1988 onwards for a period of three years. The dialogue relationship continued smoothly, but with awareness of both the ASEAN countries and the dialogue partners of the need to streamline the dialogue process so as to create more dynamism. Efforts were also undertaken to make assistance projects more efficacious and meaningful. Some dialogue partners seemed to desire to bring in the concept of equitability. However, ASEAN succeeded in maintaining its drive for the elimination of trade barriers and for development assistance particularly regarding Human Resources Development (HRD).

During this period, ASEAN held dialogue meetings with Japan in September 1988, New Zealand in November 1988, the European Community in November/December 1988 and Australia in May 1989. The dialogue meetings with the United States, Japan and Canada will be held in the second half of 1989.

The Memorandum of Understanding for the implementation of ASEAN - Australia Economic Cooperation Programme (AAECP) Phase 11 was signed by the ASEAN and Australian sides during the Post Ministerial Conference in Bangkok in, July 1988. The AAECP Phase II would commence on 1 July 1989 for the period of five years. During the year under review, both sides also held the 12th ASEAN - Australian Forum in Perth, Australia on 15 - 16 May 1989. ASEAN and Australia took the opportunity to reaffirm their determination to cooperate closely on the Uruguay Round and the international commodities issues. Furthermore, ASEAN agreed to give careful thought and consideration to the Australian proposal for an enhanced regional economic cooperation for the countries in the Pacific.

Also at the 12th Forum, ASEAN once again expressed its concern over existing and potential obstacles to trade and investment relations between the two sides. In this regard, ASEAN and Australia undertook to eliminate such obstacles.

However, the 12th Forum witnessed a new and significant development, namely, the active participation by the representatives of the private sectors of both ASEAN and Australian sides. This has evidently strengthened the efforts of ASEAN and Australia in making the dialogue more dynamic.

The ASEAN - Canada Economic Cooperation Agreement was renewed for a further period of two years, beginning 1 June 1989. Such renewal has demonstrated the importance ASEAN and Canada have attached to the dialogue relations and their desire for the cooperation to be further developed and broadened. In October 1988, the ASEAN Senior Trade Officials met the Canadian Ambassador for International Trade and Associate Under-Secretary of State for External Affairs to exchange views on regional and international economic issues of mutual interest. In the area of development cooperation, the year under review saw the signing of the Memorandum of Understanding of the ASEAN-Canada cooperation in the Ku Band Propagation Measurement Programme on Earth Space Paths. ASEAN expressed the need. for more positive cooperation with Canada in the Uruguay Round particularly in the areas of agriculture and tropical products so as to bring about fuller trade liberalization and better market access for such products. In March 1989, a project design mission, led by two consultants from Canada, visited ASEAN member countries to discuss the ASEAN - Canada Regional Training Programme.

The Eighth Meeting of the ASEAN - EC Joint Cooperation Committee (JCC) was held in Brussels in 30 November - 2 December 1988. The Meeting reviewed the progress of the implementation of the Cooperation Agreement and the activities undertaken to follow up the results of the Seventh ASEAN- EC Ministerial Meeting (AEMM) held in Dusseldorf in May 1988. It was also noted that the EC financial facility had been launched, on a pilot basis, to promote joint ventures between EC firms and prospective partners from some developing countries including the ASEAN countries. The new facility is expected to be instrumental in increasing the interest of European enterprises, especially medium scale ventures to participate in industrial cooperation in the ASEAN region. Capping the initiatives taken to pursue ASEAN-EC cooperation in the industrial field, the 8th JCC also adopted the Joint Memorandum on ASEAN-EC Industrial Cooperation as the basic framework for future activities between the two regions, thus finalizing the action plan for the pursuit of cooperative endeavours in the field of industry. It was agreed that the functioning of the Joint Investment Committees (JICs) could still be improved and their scope of activities be broadened. Both sides clearly acknowledged the need to improve the implementation of the inter-regional development cooperation. On international commodity issues, the JCC noted the requests in the ASEAN Memorandum particularly on ASEAN's concern on the possible negative effects on trade in tropical timber as a result of the negative campaigns carried out by the environmentalist groups.

The JCC also discussed the implication of a Single European Market in 1992. The EC responded to ASEAN concern by giving its assurance that ASEAN would be in a favourable position to benefit from the new environment in 1992 as it would increase opportunities for ASEAN to enlarge its market. The JCC agreed to examine ASEAN's interest in associating the ASEAN - EC private sectors in the future dialogue process. The Meeting agreed to the strategy, the objectives, the modalities, the criteria, the instruments as well as the budgetary implications for future Science and Technology cooperation. During this Meeting, a concrete step to establish permanent scientific cooperation between ASEAN and EC was taken through the creation of Joint Scientific Ventures and Technical Assistance Actions.

The Tenth ASEAN - Japan Forum in Tokyo in September 1988, attached great importance to the Mid-Term Review of the Uruguay Round of Multilateral Trade Negotiations, not only in giving impetus to the negotiation but also in accommodating the legitimate concern and interest as well as development priorities of developing countries. It also discussed issues regarding investment and industrial cooperation with emphasis on the importance of taking measures aimed at increasing the flow of Japanese investments to ASEAN as well. as investment and industrial cooperation opportunities presently available under several existing regional industrial cooperation programmes.

ASEAN welcomed Japan's new economic policy to improve a sound world trading environment, improve market access and play more active role in the growth of the Asia Pacific region. ASEAN also appreciated Japan's gesture in lifting Japan quantitative restrictions on certain agricultural and commodity products, but expressed the need for Japan to further enhance trade cooperation between the two regions by eliminating protectionist policies, including tariff and trade restrictive measures.

The Ninth Meeting of the ASEAN New Zealand Dialogue was held in Yogyakarta, Indonesia in November 1988. It was noted that while dialogue relations in general had improved, trade between ASEAN and New Zealand had deteriorated in recent years, particularly the decline in ASEAN exports to New Zealand due to New Zealand's increased self-sufficiency in oil needs. It was further expected that the liberalization of New Zealand's trade regime and the economic restructuring would create new opportunities for ASEAN exports. Regarding the ANZCERTA, New Zealand indicated that it had completed a full review of ANZCERTA in August 1988. The target date for full free trade had been brought forward from 1995 to I July 1990. On development cooperation, discussions on the proposed projects of the Trade and Investment Promotion Package (TIPP) and the Inter-Institutional Linkages Programme (IILP) have been finalized for immediate implementation. Although the Government of New Zealand has previously stated that for the FY 1988-1989 it would reduce its ODA to ASEAN fom NZ $ 2.8 million to NZ$ 2.1 million because of severe economic pressure the situation has changed. Due to some available unspent fund towards the end of the Financial Year, the New Zealand Government has decided to provide additional funds for the expenditure under the ASEAN Programme in 1988/1989 from NZ$ 2.1 million to NZ$ 2,401 million.

The ASEAN - US cooperation in trade and development has gained further momentum, as exemplified by the developments concerning the ASEAN - US Initiative (AUI), the proposed ASEAN - US Future Development Cooperation Programmes and the ASEAN - US Automated Data Exchange (ADE). A joint study on the AU I by the ASEAN and US researchers has been completed and submitted to the ASEAN and US government and Trade Opportunities Project) with emphasis on the promotion of trade and investment activities will also have private sector participation in management of projects as a new feature. After the signing of the Memorandum of Understanding on the Establishment of Automated Data Exchange (ADE) as the umbrella agreement on 8 July 1988 in Bangkok, ASEAN member countries have started to discuss with the US Consultants on the implementation of the ADE project.

On the Uruguay Round, the Eighth ASEAN-US Dialogue stressed on the commonality of interest and expected positive progress in the negotiations particularly on tropical products and agriculture. On commodities, the Meeting noted the support to bring INRA 11 into force and also the continued support of the Administration to oppose the discriminatory labelling bill on tropical vegetable oils.

The period under review is the beginning of the third year of the ASEAN - UNDP Fourth Inter-Country Programme (1987 - 1991). Significant progress has been made in expediting the approval and execution of project documents. A total of nine project documents have been signed. To accommodate projects which have already been approved outside the Third Meeting of the Aid Coordinators (MAC 111), UNDP has approved an increased amount of US$ 2,425,291 to be added to the current approved budget allocation of US$ 10,273,347 for the Fourth ICP.

The Fourth Meeting of the Aid Coordinators (MAC IV) and the Mid-Term Review of the Fourh Inter-Country Programme was held in Jakarta on 13-14 March 1989. The Meeting expressed concern over the slow rate of project delivery and fund disbursement both in the Third Cycle and the present Fourth Cycle. ASEAN has taken note of such concern. For the present Cycle, ASEAN has submitted 4 new project proposals for UNDP funding consideration. Meanwhile, UNDP has also offered to include five project proposals specifically for ASEAN. This new package has been designed to enable the ICP to directly assist the developing countries in the Asia and the Pacific in promoting their capabilities to respond to and cope with the issues and problems which they are likely to face in the 21st Century.

During the past decade, a major obstacle to the promotion of peace and stability in the region has been the Vietnamese occupation of Kampuchea.

The blatant aggression of Vietnam against Kampuchea has brought suffering to the Kampuchean people and nation and is a threat to inter-national peace and security. ASEAN has been and remains active in its efforts to bring about a comprehensive political settlement to this 10-year-old problem. ASEAN is convinced that any political solution to this problem must be comprehensive just and durable. ASEAN believes that there should be a comprehensive political solution to the problem where there must be the total withdrawal of Vietnamese forces from Kampuchea to allow the Kampucheans to exercise the right of self-determination, There must be an international control mechanism with some peace keeping elements to undertake control and supervision. ASEAN looks forward to the emergence of Kampuchea as. an independent, sovereign, neutral and non-aligned nation posing no threat to its neighbours.

ASEAN has consistently carried on diplomatic efforts to bring about such a political settlement. Indonesia as the interlocutor of ASEAN convened the First Jakarta Informal Meeting (JIM: 1), 25-28 July 1988 followed by the First Working Group Meeting held in Jakarta on 17-20 October 1988. JIM I provided for the first time the opportunity for discussions among the parties directly involved and other concerned countries, At the Meeting, a common understanding was reached on the need to comprehensively solve the Kampuchean problem through political means, so as to establish an independent, sovereign, peaceful, neutral and non-aligned Kampuchea on the basis of self-determination and national reconciliation. Recent developments have given some reasons for optimism and indicated that ASEAN's vigorous efforts have begun to bear fruits. During the past year ASEAN's pursuit of the solution to this problem included a special Foreign Ministers Meeting in Bandar Seri Begawan on 21 January 1989 to discuss and assess the developments on the Kampuchean problem. The Foreign Ministers decided to hold the Second Jakarta Informal Meeting (JIM I 1) in Jakarta, in February 1989, as a follow up of the First Jakarta Informal Meeting.

The Second Jakarta lnformal Meeting (JIM 11) was held in Jakarta on 19-21 February 1989 preceded by the Second Working Group Meeting held in Jakarta on 16-18 February 1989. The meeting extensively discussed the parameters of the substantive aspects for a settlement as contained in the consensus statement of the Chairman of the Jakarta Informal Meeting, touching on the withdrawal of Vietnamese forces, the prevention of the recurrence of genocidal policies and practices of the Pol Pot regime, cessation of all foreign interference, an international control mechanism, general elections, the establishment of peace and stability in Southeast. Asia and the convening of an international conference. While JIM II resulted in some progress in the search of a comprehensive, political settlement, many divergences remain to be narrowed down and settled between and among the parties directly involved and the parties concerned in the Kampuchean conflict. Therefore, there is need to further intensify ASEAN efforts towards a Kampuchean settlement. Due cognizance to the efforts, of Indonesia, as interlocutor of ASEAN, should be given for initiating the Jakarta Informal Meeting (JIM) process.

At the 43rd United Nations General Assembly of 1988, ASEAN's draft Resolution on the situation in Kampuchea was passed with an overwhelming support by the United Nations members. There were 84 Co-sponsors as compared to 83 in 1987 and the result of the voting was 122-18-13 as compared to 117-21-18 in 1987.

The continuous and seemingly endless flow of Indochinese refugees and displaced persons into the ASEAN region is another problem which has, for the past 14 years, posed heavy social, economic and security burdens on the ASEAN member countries providing temporary first refuge. The inability of countries-of-origin in Indochina to put an end to the mass, clandestine and economically-motivated outflow of their citizens coupled with the proliferation of refugee camp population in the ASEAN region due to a steady decline in the resettlement rate has prompted ASEAN member countries to individually and jointly engage in on-going bilateral and multilateral discussions with parties concerned to find a viable solution to the problem. With the successful convening of Preparatory Meeting for the International Conference on 7-9 March 1989 in Kuala Lumpur. The International Conference on lndochinese Refugees was held in Geneva from 13-14 June 1989.

During the 21st AMM. the ASEAN Foreign Ministers issued a statement calling for the convening of an international Conference on lndochinese refugees at ministerial level under. the auspices of the UNSG in 1989 to formulate a new comprehensive plan of action on Indochinese refugees, which was subsequently endorse by the 43/119 of 8 December 1988. Consequently, ASEAN member countries along with other parties concerned, including the UNHCR produced a draft Declaration and Comprehensive Plan of Action which consists of a balanced comprehensive set of measures designed to solve the Indochinese problem in a humanitarian manner acceptable to all parties concerned. The draft was endorsed by the Preparatory Meeting for the International Conference on lndochinese Refugees held in Kuala Lumpur, Malaysia on 7-9 March 1989, and was subsequently adopted at the International Conference in Geneva on 13-14 June 1989.