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:

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:

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: