ASEAN had active external relations with its Dialogue Partners and other international organizations to sustain the momentum of cooperative activities and to complement the ASEAN Member Countries' efforts in managing the regional financial and economic crisis.

One of these recent developments were the ASEAN+3 and ASEAN+1 summits between the ASEAN Heads of State and Government and their counterparts from China, Japan and the Republic of Korea (ROK).

Following the inauguration of the ASEAN+3 and ASEAN+1 summits in Kuala Lumpur in December 1997, the ASEAN leaders met again with leaders of China, Japan and the ROK in Hanoi at the Sixth ASEAN Summit in December 1998. The participating countries found the process useful and a consensus emerged to convene the summits annually. The Philippines will host the next summits in November 1999.

Several initiatives were put forward to enhance the ASEAN+3 framework. As China proposed, a meeting of Vice Finance Ministers and Deputy Governors of Central Banks within the ASEAN+3 framework was held in Hanoi on 18 March 1999. The meeting exchanged views on monitoring short-term capital flows and restructuring the international financial architecture. There was a convergence of views on the international financial architecture, particularly on the need to involve emerging economies in the process of restructuring it. The participants agreed to maintain close cooperation in addressing these issues and to present the views of this new forum at the next ASEAN+3 summit in Manila. These issues were further discussed when the ASEAN+3 Finance Ministers met in Manila on 30 April 1999.

Japan proposed that the ASEAN+3 Senior Officials meet to discuss the follow-up and implementation of initiatives of the ASEAN+3 Summit meeting, and to prepare an indicative agenda of the next Summit meeting.

The ROK proposed at the ASEAN+3 Summit in Hanoi that a Vision Group on East Asian Cooperation be formed to explore ways to expand cooperation in all sectors and at all levels among the countries of East Asia. The proposed Vision Group will formulate a common vision, reflecting the rapidly changing regional and global environment and offering the direction for future cooperation among the countries of East Asia.

Singapore proposed at same Summit the creation of an East Asia-Latin America Forum. The Forum shall aim to enhance trade and investment ties between the two regions. Singapore expressed her readiness to host a meeting of the Forum at official level in the second half of 1999. Depending on the level of interest, Singapore suggested the convening of a ministerial meeting in the year 2000 in one of the countries in South America and a Summit in 2001 in one of the ASEAN countries.

The ASEAN Secretariat organised the ASEAN Development Cooperation Forum on 6-7 May 1999 in Jakarta. The Forum presented the first opportunity for the Secretariat to brief the Dialogue Partners and other interested organisations on the immediate and mid-term priorities of ASEAN as outlined by the Hanoi Plan of Action (HPA). The Secretariat sought their assistance in realising the HPA through concrete regional cooperation activities in implementing development cooperation programmes in the priority areas of economic recovery and greater economic integration, mitigating the social impact of the financial crisis, environment and human development.

The 7th ASEAN Australia Economic Cooperation Programme (AAECP) Joint Planning Committee Meeting was held in Bali on 4-6 August 1998. At the meeting, Australia re-affirmed its commitment to ASEAN by announcing its intention to extend the AAECP to a fourth phase. Australia acknowledged that even though the Phase III could not be extended to the new ASEAN Member Countries, it would favourably consider their participation in future ASEAN-Australia programmes. Australia also indicated its commitment to work with ASEAN to expedite the region's recovery and exchanged views on measures to deal with the financial crisis, which included initiatives to mitigate the social impact of the crisis and bold economic and financial reforms.

Highlights of the past year included Vietnam's integration in almost all of the Project Stream activities, such as Coastal Zone and Resource Management Project, Energy from Biomass Residues Supplemented by Fossil Fuels Project, Waste Water Treatment Technology Transfer and Cleaner Production Demonstration Project, Telecommunications Cooperation and Training Project, and Quality Assurance for Fresh and Processed Tropical Fruit. In light of the delay in the commencement of the programmes and the integration of Vietnam, the MOU for AAECP Phase III was extended until June 2001.

A joint mid-term review of the AAECP Phase III was conducted in December 1998. The review indicated that the programme played an important role in intra-regional human resource development and technology transfer, and contributed significantly to the facilitation of Australia's interaction with ASEAN. ASEAN and Australia agreed that the review would provide significant inputs for the development of the future AAECP Phase IV.

The 8th Joint Planning Committee Meeting was held on 27-28 April 1999 in Canberra. Australia confirmed that it had received approval to proceed with the development of a Phase IV and that the programme would include all the ASEAN Member Countries. The Meeting proposed a change in the name of the programme to ASEAN-Australia Development Cooperation Programme (AADCP) to better reflect its developmental focus.

The Meeting agreed to establish an ad-hoc Working Group to discuss the framework of AADCP Phase IV. A special meeting would be convened in June 1999 to determine the Terms of Reference, the membership and the priorities of the Working Group. The Meeting agreed that Phase IV should adequately address the priorities of ASEAN and the needs of Australia, be consistent with the Hanoi Plan of Action, reflect a high level of Australian identity, and focus on high-impact regional programmes.

Canada's major contribution to the development sector came through the ASEAN-Canada Regional Training Programme (RTP) which provided training in Canada for government officials from ASEAN countries in areas of specialization important to ASEAN. Canada also undertook cooperation projects with the ASEAN member countries through its Southeast Asia and Asia programmes. Since its inception, the RTP has been under-utilized on account of Canada's ODA policy towards some ASEAN member countries. Thus, only one project, Environment and Natural Resources Accounting for ASEAN Countries, was completed in the past year, while two projects were being implemented in the areas of marine sciences and women support.

ASEAN and Canada convened a Working Group Meeting on the Revitalization of ASEAN-Canada Dialogue Relations in February 1999 to review the future direction of the relations in the light of diminishing financial resources and the expansion of ASEAN. While the meeting was unable to resolve the stalemate on development cooperation, Canada expressed its willingness to work with ASEAN to implement the Hanoi Plan of Action in addressing the social impact of the financial crisis, strengthening regional financial systems, combating transnational crime, and tackling transboundary haze.

Canada has suggested that the scope of the Joint Cooperation Committee (JCC) be enlarged and that the JCC discuss the economic integration of the region and areas of cooperation under the HPA. Both sides agreed that the next JCC could focus on the theme of "Addressing the Social Impact of the Financial Crisis." ASEAN welcomed Canada's interest in the HPA and its suggestion for increased information exchange between the two sides through the Country Coordinator and the ASEAN Secretariat.

Canada stressed the role of the Canadian private sector in the dialogue process and the need to exchange up-to-date information on ASEAN developments of interest to Canadian businesses. It mentioned that the JCC should be used to brief the Canadian private sector on developments in AFTA, AICO, AIA and other ASEAN economic initiatives with a view to initiating cooperation activities.

ASEAN proposed that future Joint Planning and Monitoring Committee (JPMC) meetings be composed of the current Country Coordinator, Canada and the ASEAN Secretariat. ASEAN submitted to Canada draft Terms of Reference of the proposed JPMC.

The 12th Meeting of the ASEAN-Canada Joint Cooperation Committee (JCC), which was scheduled to be held in Manila in June 1999, was postponed to a later date in view of Canada's objection to Myanmar's participation in the Meeting.

The ASEAN-China relationship reached a high level of institutionalization with China's participation in the ASEAN+3 and ASEAN+1 summits in the last two years.

In Hanoi, the Chinese Vice President represented the Chinese President at the ASEAN+3 and ASEAN-China Summit meetings. China commended ASEAN's national and regional efforts in coping with its economic difficulties and assured ASEAN that it would not devalue the Chinese national currency. China also informed ASEAN that it was stimulating its domestic economy with a massive infrastructure development programme over the next three years and invited ASEAN to take advantage of the numerous trade and investment opportunities in the country. ASEAN and China agreed that it would be useful to increase coordination in APEC and ASEM. In the same occasion, China announced its contribution of US$200,000 to the ASEAN Foundation.

At the Fifth ASEAN-China Senior Officials Consultations held in Kunming from 4 to 7 April 1999, China affirmed its strong support for ASEAN's lead role in the ARF. The senior officials exchanged views on developments within ASEAN and China, ASEAN-China relations, and other regional and international issues. Within this context, the South China Sea issue, including the idea of developing a regional code of conduct as part of the ongoing confidence building measures among the countries in the region, was also discussed.

ASEAN and China made good progress in narrowing differences on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ) Treaty. China said that it would adopt a positive attitude to resolve the differences and formally sign the Protocol to the SEANWFZ Treaty. China reiterated that it would positively consider acceding to the Treaty of Amity and Cooperation in Southeast Asia.

The Second Meeting of the ASEAN-China Joint Cooperation Committee was held in Kuala Lumpur from 17 to 18 March 1999. The meeting endorsed four new project proposals: personnel exchange (exchange of visits); seminar for young ASEAN diplomats on understanding modern China; follow-up seminar on ASEAN-China economic and trade cooperation; and workshop for ASEAN and Chinese scientists to discuss cooperation activities. These projects would be implemented through the ASEAN-China Cooperation Fund.

On 25 to 28 January 1999, the Ministry of Foreign Trade and Economic Cooperation of China organized the ASEAN-China Economic and Trade Seminar in Beijing. Participants from ASEAN and China proposed that a follow-up seminar be held in ASEAN to discuss more specific issues and strategies for promoting two-way investment flows.

The convening of the 13th ASEAN-EC Joint Cooperation Committee was considerably delayed because of EU's insistence on excluding Myanmar from active participation. ASEAN was determined to ensure that all Member Countries were represented. The JCC finally took place on 24-27 May 1999 in Bangkok on the basis of compromise arrangements where all ASEAN members were present. Sub-committee meetings on trade, economic and industrial cooperation, science and technology and forest were also held. For related reasons, the ASEAN-EU Ministerial Meeting and the ASEAN-EU Senior Official Meetings scheduled for March 1999 in Berlin were postponed.

ASEAN and EU agreed to continue cooperation, based on the areas identified at the 12th ASEAN-EC JCC and the 12th ASEAN-EU Ministerial Meeting, with the finalisation of an ASEAN-EU Work Programme for Future Actions in ASEAN-EU Relations. Under the programme, ASEAN and EU would be undertaking activities in the areas of trade and trade facilitation, standards and conformance, intellectual property rights, customs, trade in services, investment, environment, energy, human development, science and technology, and business cooperation. The programme would also assist ASEAN in the economic recovery process and help it to mitigate the social impact of the economic crisis.

ASEAN-EU development cooperation activities continued in the year under review even though no new projects were implemented. The operations of the ASEAN-EC Energy Management Training and Research Centre (AEEMTRC) were completed on 31 December 1998. Based in Jakarta, the Centre assisted ASEAN in developing innovative methodologies in resources evaluation, production optimization and utilization of energy, and the preservation of the environment quality. AMMETRC was replaced by the ASEAN Center for Energy (ACE) on 1 January 1999. The first-year work programme of ACE under the ASEAN-EU Energy Programme covers electricity interconnection, renewable energy (mini-hydro), clean coal, natural gas, and energy efficiency and conservation.

The Technology Transfer for Energy Cogeneration from Biomass in ASEAN Countries (COGEN) project initiated in 1991 helped ASEAN to accelerate the implementation of proven technologies for heat and power generation. The second phase, which commenced in 1995, was instrumental in developing ASEAN's capacity for replication of modern, efficient and environmentally friendly European technologies. ASEAN and EU agreed to extend the second phase until 1 February 1999 to enable completion of its activities, particularly in Vietnam. The EU also extended the validity of the current Financing Agreement and Service Contract until 1 February 2000. This was to prevent any gap between the current and future phases of the programme and to finalize the implementation of the full-scale demonstration projects already contracted in the current phase. The project will continue with Phase III immediately after the completion of the second phase.

In order to attract European investments and promote business cooperation, ASEAN has been working with the EU on two important programmes: industrial standards and quality assurance and protection of intellectual property rights. The Memorandum of Understanding on ASEAN-EU Regional Cooperation on Standards, Quality and Conformity Assessment Programme, worth ECU 6.827 million, was signed between ASEAN and the EU on 31 December 1998. The programme, expected to commence in the latter half of 1999, would develop ASEAN's conformance standards and quality assessment to make them compatible to those of the EU.

With the success of the EU-ASEAN Patent and Trademarks Programme, launched in 1993, in establishing, strengthening and modernizing the intellectual property institutions in ASEAN, a new ASEAN-EC Intellectual Property Rights Cooperation Programme was negotiated between the ASEAN and the EC. The programme would further upgrade the ASEAN intellectual property system and bring it into line with EU practices and international standards. The priority areas would be patents and industrial designs, trademarks and copyrights.

Since private sector participation was an important component of economic and development cooperation, the ASEAN Secretariat and the EC explored the possibilities for cooperation between the ASEAN Chamber of Commerce and Industry and Eurochambers. The areas of cooperation would include institutional capacity building, development of small and medium enterprises, and human resource development for business growth.

ASEAN and EU looked into the feasibility of convening a conference of ASEAN Senior Finance and Central Banks Officials on the euro, which had been proposed at the ASEAN-EU 9+1 Meeting during the Post Ministerial Conferences on 28 July 1998 in Manila. The conference would provide ASEAN officials with better insights into the introduction of the euro and the implications of the euro for ASEAN.

The ASEAN Secretariat benefited from the Institutional Development Programme for the ASEAN Secretariat, which commenced in December 1996 and ended on 31 December 1998. This programme not only augmented the competence of the Secretariat's professional staff in regional policy-making but also helped the Secretariat to develop its information technology capabilities and networking with institutions in Europe. The ASEAN Secretariat officials undertook 15 missions to the European Union.

In an effort to monitor developments in ASEAN-EU development cooperation, ASEAN and the EU explored the feasibility of establishing a Coordinating Group. Since the ASEAN-EC JCC only met once in eighteen months to review ASEAN-EU development cooperation activities, the unit would help to manage development cooperation activities and project implementation between the meetings.

Eight ASEAN scientists underwent a one-month attachment in Hyderabad, in March 1999, as part of the collaboration with their Indian counterparts in two advanced materials projects: Nd-Fe-B super magnets, and wear resistant and thermal barrier coatings for automotive and other applications.

Preparations were underway in India to launch a new programme to train ASEAN computer experts in advanced information technology. The renowned National Institute of Information Technology (NIIT) of India would conduct the training and the programme would accommodate about 100 trainees from ASEAN each year. This was the first operational step towards the establishment of the proposed ASEAN-India Informatics Training Centre in ASEAN.

India took an active part in the Fifth ASEAN Science and Technology Week in Hanoi in October 1998. US$50,000 from the ASEAN-India Fund was allocated to assist Vietnam in defraying its expenses in organizing the event.

The first meeting of the ASEAN-India Working Group on Trade and Investment was held in New Delhi on 25-26 May 1998. The meeting agreed, among other things, to endorse an Indian proposal to conduct a Study on AFTA-India Linkages for the Enhancement of Trade and Investment. The terms of reference of the proposed study were being worked out.

Indian tourism officials held informal consultations with leaders of the ASEAN National Tourism Organizations in Chiang Rai on 12 July 1998. India was keen to learn from ASEAN its experience in tourism promotion and in the production of a tourism investment guide.

Twenty-eight representatives of ASEAN SMEs participated in the India-ASEAN SMEs Partenariat hosted by the Federation of Indian Chambers of Commerce and Industry in New Delhi on 10-11 November 1998. The airfares and participation fees of the ASEAN participants were financed from the ASEAN-India Fund.

In human resource development, a joint study was underway on HRD cooperation between ASEAN and India. The final outcome of the US$50,000 study was expected before July 1999.

One major activity to encourage people-to-people interactions is the ASEAN-India Lecture Series. Eight notable speakers from ASEAN participated in this programme. They included Malaysian Prime Minister Dato Seri Dr. Mahathir bin Mohamad who spoke on the "Prospects for Improving India-ASEAN Economic Cooperation" on 21 December 1996; Prof. Tommy Koh, Ambassador-at-large of Singapore, who spoke on "The East Asian Economic Crisis: Lessons Learnt and Prospects for Recovery" on 26 November 1998; and Dr. Mohamed Ariff, Executive Director of the Malaysian Institute of Economic Research, who spoke on "The Financial Crisis and the Reshaping of the Malaysian Economy: Trends and Issues" on 10 May 1999. The Secretary-General of ASEAN has accepted India's invitation to speak under this programme in New Delhi in the last quarter of 1999.

A new project to promote public awareness of the ASEAN-India relationship in ASEAN cities was being developed by India.

Senior Officials of ASEAN and India met in Singapore on 25 February 1999 to exchange views on political and security issues of common concern. The two sides expressed their satisfaction with the progress in ASEAN-India relations and agreed to continue cultivating the ties for mutual benefit.

The ASEAN-Japan Dialogue saw significant developments in the past year. Japan continued to play an active role in the ASEAN+3 and the ASEAN+Japan forums. Japan's proposal for ASEAN+3 Senior Officials to meet at least once a year to review implementation of decisions and prepare the agenda for the ASEAN+3 summit was adopted. Japan also pushed for a meeting of Finance Ministers to discuss issues on the financial and economic crisis in the ASEAN+3 framework. The first such meeting took place in Manila on 30 April 1999.

Pursuant to a decision at the ASEAN-Japan summit in Kuala Lumpur in December 1997, a new ASEAN-Japan ministerial body called the AEM-MITI Economic and Industrial Cooperation Committee (AMEICC) was established. The new body has a broad mandate to develop ASEAN-Japan cooperation activities to promote industrial cooperation in ASEAN, improve ASEAN competitiveness, and provide development assistance to new members countries of ASEAN.

The first meeting of the AMEICC was held in Bangkok on 23 November 1998. It agreed to focus its work programme on assisting ASEAN economic recovery. The programme included a study on the areas where ASEAN lost its competitiveness due to the crisis and how these areas could be developed to regain their competitiveness; a study to identify the future prospects of major industries in ASEAN, including their demand trend, supply structure and technological process; and strengthening of the centres of excellence in ASEAN to cope with the demand for more engineers, technical personnel and managers.

The 16th Meeting of the ASEAN-Japan Forum in Hanoi on 25 to 26 June 1998, reaffirmed their common commitment to foster dialogue and exchange at every level in order to build a strong partnership. Japan paid particular attention to the expectations of ASEAN at the Forum. It re-affirmed its continued commitment to the promotion of trade and investment with ASEAN by stimulating Japanese domestic demand, facilitating greater market access for ASEAN exports and encouraging Japanese investors to take advantage of the numerous opportunities created by AFTA, AICO and AIA.

ASEAN welcomed Japan's generous contribution of US$20 million in the form of a Solidarity Fund to the ASEAN Foundation. The Solidarity Fund was to be utilised in three years to fund programmes in ASEAN designed to, among other things, enhance ASEAN-Japan solidarity.

ASEAN and Japan took steps to strengthen the Japan-ASEAN Exchange Programme (JAEP) and the Japan-ASEAN Cooperation Promotion Programmes (JACPP).

Activities funded by the JACPP and completed in the year under review were the Human Resources Development in the Civil Aviation Sector III and the visit of 33 Japanese officials to ASEAN countries. The implementing agency of the first activity, the Singapore Aviation Academy, had requested funding support for another three years of the programme. Two activities implemented under the programme were the ASEAN Network for Rapid Exchange of Strong Earthquake Data and the National and Regional Workshops on the Role of Transport and Communications in the ASEAN Region in the 21st Century.

Activities funded by the JAEP included the Workshop/Training Programme for Managers and Associated Personnel and Skills Training for Out of School Youth (Phase II), Seminar on Youth and Family Values, Seminar on Intellectual Dialogue for Our Common Challenge, Research on the Influence of Islam on Politics and Economies of the ASEAN Countries, Comparative Study on Economic Development Models and Measures Taken for the Economic Crisis and the Study on Employment and Human Resource Development in ASEAN. The Forum in Hanoi agreed that Japan would provide ASEAN with English translations of reports from the three research studies with JAEP funding.

New activities proposed for the 1999 financial year under the JACPP included the AIA Workshop, the Industrial Familiarisation Programme and the dispatch of a mission to follow up on Japan's assistance to Asian countries affected by the crisis.

Under the JAEP, Japan proposed the following activities: Vision 2020 Japan-ASEAN Consultation Conference; 2nd Intellectual Dialogue on Building Asia's tomorrow: Promoting Sustainable Development and Human Security; Social Development after Economic Crisis in Asian countries; Society for Promotion of Japan Diplomacy: "Asia Cup" International Moot Court Contest; and Research Exchange of Academics.

The Joint Management Committee (JMC) Second Workshop on ASEAN-Republic of Korea Development Cooperation on 4 to 5 May 1998 in Jakarta agreed to replace the ASEAN-ROK JMC with the ASEAN-ROK Joint Planning and Review Committee (JPRC). The JPRC was officially established in June 1998 to rationalize the mechanism for ASEAN-ROK development cooperation within the ASEAN-ROK Dialogue framework and to plan, review and manage all aspects of ASEAN-ROK development cooperation. The meeting also reviewed the project approval procedures to expedite the implementation of pending proposals and to increase the utilisation rate of the ASEAN-ROK Special Cooperation Fund.

At the 4th Meeting of the ASEAN-ROK Dialogue on 29-30 October 1998 in Seoul, ASEAN and the ROK agreed to work together in bringing their economies out of the financial crisis by promoting and facilitating trade, encouraging the flow of investments and boosting tourism.

ASEAN and ROK agreed to undertake joint efforts in promoting counter-trade on essential items and in harnessing the opportunities presented by the acceleration of the ASEAN Free Trade Area and the ASEAN Investment Area and other ASEAN measures to promote extra regional trade. The ROK was keen to share with ASEAN its experience in strengthening the financial system and in developing the ASEAN capital markets. The two sides agreed to promote and facilitate investments by developing effective channels, training for public officials, and awareness programmes for the business community. The efforts would encompass the promotion of industrial joint ventures through AICO, training for ASEAN officials on promoting and facilitating investments, sharing of experience in the development of small and medium enterprises, and assistance to ASEAN in R&D and higher value added in capital and technology intensive industries.

On tourism, the ROK was considering reducing the tax on commercial organizations from ASEAN arranging incentive travel for their staff and personnel to the ROK. It would also be considering the possibility of including ASEAN as an optional tourist destination for its travel packages for the pre-and post-World Cup 2002 to be held in ROK and Japan.

ASEAN and the ROK re-affirmed their commitment to strengthening cooperation in education, environment, tourism and science and technology with a focus on human resources development. So far, 49 projects have been undertaken in these fields under the ASEAN-ROK Special Cooperation Fund (SCF). To bolster ASEAN-ROK ties in the next millennium, a Future Oriented Cooperation Projects Fund was established by the ROK to fund exchanges in the areas of youth, media and culture. The Youth Exchange project was completed on 13 February 1999, while the Media and Culture Exchanges would be completed in the year 2000.

Flagship projects were introduced to deepen the ASEAN-ROK dialogue, with focus on education, environment and science and technology. The first flagship project on the environment, Research of Degraded Terrestrial Ecosystem and Development of their Sustainable Management Systems, will be initiated in 2000. Since the projects were large scale and multi-year in nature, they are expected to have significant regional impact.

At the 9+3 Summit in Hanoi on 16 December 1998, the ROK proposed the formation of an "East Asia Vision Group." The Group, to be composed of eminent intellectuals, would draw up a vision for mid-to long-term cooperation in political and socio-cultural sectors, including economic ties to facilitate the further development of the East Asian region. The ROK submitted a detailed proposal on the Vision Group.

The ASEAN-ROK 21st Century Forum was convened for the last time on 16-17 October 1998. The Forum, comprising of eminent persons from ASEAN and the ROK, had met on two other occasions. The report of the Forum encompassed far-reaching initiatives to enhance regional peace and security, promote economic and social development, cultural understanding, and confront the challenges of the next century, such as managing the impact of globalization, harnessing information technology, safeguarding the environment, and eradicating poverty.

The 1st ASEAN-ROK Joint and Planning Review Committee (JPRC) was held on 7-8 April 1999 in Manila. The Meeting agreed to intensify collaboration in the four priority areas of science and technology, environment, education, and human resource development. It also agreed to pursue further people-to-people contacts and economic cooperation. The Meeting adopted a revised project approval procedure, which took into account the internal changes in the project approval process of the Secretariat and the bottlenecks in the former procedures. It reviewed the development cooperation projects under the dialogue and adopted several measures to clear the backlog of pending proposals and to expedite the implementation of the JPRC approved projects. The Meeting agreed to hold its next meeting in Singapore in the first quarter of the year 2000.

New Zealand hosted two important dialogue meetings in the year under review: the 6th Meeting of the ASEAN-New Zealand Joint Management Committee and the 14th ASEAN-New Zealand Dialogue Meeting.

At the 6th Meeting of the ASEAN-New Zealand Economic Cooperation Programme Joint Management Committee in Wellington on 19-20 October 1988, New Zealand proposed that, in view of the economic crisis, the ASEAN-New Zealand Economic Cooperation Programme (ANZECP) be focus on trade facilitation; public sector reform; science and technology; and English language training for ASEAN officials.

The meeting discussed and reviewed cooperation programmes, including Natural Gas Utilization in Transport Programme (NGUT), Trade and Investment Promotion Programme (TIPP), Science and Technology Cooperation, and English Language Training for Officials (ELTO) programme, and other activities.

In the Natural Gas Utilization in Transport Programme, a new phase was being considered. The Meeting discussed ways to expand the coverage of the TIPP activities and enhance the participation of the private sector.

The Meeting agreed that ASEAN and New Zealand should consider the following areas for future activities: business management and governance by the private sector; transparency in the public sector; industrial re-training for laid-off workers; strengthening the banking sector on the part of the private sector and the supervision mechanisms of the public sector; risk and debt management; trade financing; technical assistance in establishing an ASEAN Surveillance Process; technical assistance in the food processing industry; and market survey for export products.

One of the on-going projects under the Trade and Investment Promotion Programme is the Metrology Skills Training Programme. Seven trainees from Indonesia, Malaysia, Myanmar, Thailand and Vietnam had already been trained while three more trainees from the Philippines and Thailand underwent training from April to June 1999. Another batch of trainees from Brunei Darussalam and Vietnam would begin their training in New Zealand in October to November 1999.

New Zealand was also active in providing English language training for officials from the ASEAN in the English Language Training for Officials (ELTO), a 7-month intensive Language training course at Victoria University in Wellington. Twelve Awards would be available in 1999. The next training course is scheduled to start in August 1999.

Project proposals in the pipeline included four new TIPP projects, Institute of South East Asian Studies Fellowship, Assessment of Impacts of the Regional Economic/Financial Crisis on Agriculture, Forestry and Fishery in ASEAN Member Countries and Measures to Overcome the Situation, Workshop on Biotechnology Cooperation, Re-run of the Environmental Engineering Mission (Water and Waste Water Treatment Technology Mission), and ASEAN University Network.

The 14th ASEAN-New Zealand Dialogue Meeting, held in Wellington on 20-21 October 1998, saw an exchange of views on regional and international issues, which included the regional economic situation, ASEAN-New Zealand trade, investment and services, the AFTA-CER linkage, APEC, developments in ASEAN since the last Dialogue Meeting, and transnational crime.

The Meeting agreed on the need to develop new ways of strengthening relations in order to adapt to changing circumstances. The meeting agreed that particular attention should be given to further people-to-people contacts.

The Meeting acknowledged the significance of the AFTA-CER process in the economic relationship between ASEAN and New Zealand and that effort was being undertaken to reduce non-tariff barriers. The Meeting also identified transnational concerns as a potential area for cooperation, in particular transnational crime, nuclear safety and nuclear waste management, biodiversity and water management and conservation. The Meeting stressed that liaison between the ASEAN Secretariat and the South Pacific Forum would be valuable in a number of these areas.

The Rules of Procedure of the ASEAN-Russia Cooperation Fund went into effect on 10 July 1998. However, the economic difficulties in both ASEAN and the Russian Federation slowed down cooperation activities between the two sides.

To foster ASEAN-Russia cooperation, both sides increased their efforts to generate a new momentum, including convening the Second ASEAN-Russia Senior Officials Meeting and the Second Meeting of the ASEAN-Russia Joint Cooperation Committee (ARJCC) in Hanoi in 1999. The ARJCC held in first meeting in Moscow on 5-6 June 1997 and identified science and technology as one area of cooperation.

The ASEAN Committee on Science and Technology (COST) has proposed that an ASEAN-Russia workshop be organized to discuss cooperation in any two of four areas that the ASEAN-Russia Working Group on Science and Technology had chosen as priority areas, namely: biotechnology, meteorology and geophysics, microelectronics and information technology, and materials science and technology.

A U.S State Department official visited ASEAN countries in February 1999 and held consultations with officials of ASEAN-Malaysia and the ASEAN Secretariat. The purpose of the visit was to reaffirm the US commitment to and involvement in the region and to further strengthen US relations with ASEAN.

The 14th ASEAN-US Dialogue, held in Manila on 23-24 May 1998, reviewed the evolution of the relationship and agreed to strengthen the mechanism, taking into account changing needs and expectations. The two sides also exchanged views on regional security issues of mutual concern.

The US initially allocated US$4 million to the Southeast Asian Environment Initiative (SAEI), which consisted of four projects: smoke/haze modeling, smoke/haze monitoring, a health assessment, and climate impact research. Subsequently another US$800,000 was given to the SAEI.

The US welcomed ASEAN's commitment to creating a drug-free region by the year 2020 and agreed to contribute towards the realization of the vision. The Chairman of the ASEAN Senior Officials on Drug Matters (ASOD) would be invited to the next Dialogue meeting with the US for substantive discussions on narcotics cooperation.

ASEAN welcomed the US programmes to assist needy students from ASEAN studying in American universities to alleviate the hardship caused by the economic crisis at home. ASEAN urged the US to allow all ASEAN students to participate in the Studies and Work Programme and to encourage American universities to lower their tuition fees for ASEAN students.

Since the completion of the Environmental Improvement Project in June 1998, there has been no new ASEAN-US cooperation project. ASEAN expressed its interest in pursuing new cooperation activities with the US in the areas of human resource development to enhance the competitiveness of ASEAN SMEs, transnational crime, social, cultural and intellectual exchanges, and training in information technology.

ASEAN welcomed the expression of interest of the US Department of Agriculture in providing technical assistance to support ASEAN agricultural projects. Cooperation in food, agriculture and forestry and in rural development and poverty eradication was under discussion.

The signing of the Letter of Intent in Manila on 24 July 1998 marked the launching of the Sixth ASEAN-UNDP Sub-regional Programme (ASP-6), in which UNDP hoped to raise about US$6 million to fund ASEAN development cooperation in the four broad areas: (a) Economic Recovery and Economic Integration; (b) Social and Human Capital and Capacities; (c) Environment and Natural Resources Management; and (d) ASEAN Institutional Development.

In order to meet urgent needs, the ASEAN Secretariat had formulated with the UNDP Jakarta Representative Office three "fast track" special programmes: (a) Response to the Financial Crisis; (b) Mitigating the Social Impact of the Financial Crisis; and (c) Operationalization of the Regional Haze Action Plan.

Despite the "fast-track" nature of the three special sub-programmes, processing the programme documents took a longer time than expected. Nevertheless, UNDP has given assurances that it would support cooperation activities through the ASP-6 as agreed at the ASEAN-UNDP Dialogue on 6 October 1996 in Kuala Lumpur.

At the 1st Meeting of the ASEAN-Pakistan Joint Sectoral Cooperation Committee in Bali on 5 February 1999, ASEAN and Pakistan agreed to develop practical and timely joint cooperation activities by matching the priorities of ASEAN as outlined in the Hanoi Plan of Action with the expertise of Pakistan. Specific areas of cooperation to be explored included food processing technology, environmental protection, water resource management, narcotics control, non-conventional energy research, remote sensing, and geographic information systems.

Also at the Bali meeting, Pakistan announced a contribution of US$100,000 to establish the ASEAN-Pakistan Fund, which would support joint activities, including those that would promote people-to-people contacts.

In addition, Pakistan announced its readiness to host in Karachi a workshop on trade facilitation in conjunction with the first meeting of the ASEAN-Pakistan Business Council.

The Bali meeting followed the inaugural meeting in Islamabad in November 1997, when the ASEAN-Pakistan Sectoral Dialogue was institutionalized with the formation of the ASEAN-Pakistan Joint Sectoral Cooperation Committee (APJSCC). The APJSCC, co-chaired by the Secretary-General of ASEAN and the Foreign Minister of Pakistan, was responsible for promoting cooperation in trade, industry, investment, environment, science and technology, tourism, drugs and narcotics, and human resource development. Pakistan will host the Second Meeting of the APJSCC in the first quarter of 2000.

The Secretary-General of ASEAN met with H.E. Mr. Onder Ozar, Secretary-General of the Economic Cooperation Organization in Kathmandu on 27 October 1998. They were in the capital of Nepal to attend the Fourth Consultative Meeting among the Executive Heads of Sub-regional Organizations and ESCAP. Their bilateral meeting was a follow-up to the Fourth ASEAN-ECO Foreign Ministers Meeting in New York on 1 October 1998.

The two Secretaries-General agreed to cooperate in organizing a workshop on trade and investment opportunities and electronic commerce in the ECO and ASEAN regions at the ECO Headquarters in Teheran in the last quarter of 1999. Officials and representatives of the private sector from both sides would be encouraged to attend. The two Secretaries-General agreed to a one-week attachment of ECO research and statistics officials at the ASEAN Secretariat with funding support from the UNDP.

The two sides also agreed to encourage and support their respective Chambers of Commerce to establish direct contact as soon as possible and to provide them with relevant information. They further noted that Pakistan, being a Sectoral Dialogue Partner of ASEAN, could play an important role in developing ASEAN-ECO cooperation.

The Foreign Minister of Singapore and Chairman of the ASEAN Standing Committee and the Foreign Minister of Sri Lanka and Chairman of the SAARC Council of Ministers met in New York on 25 September 1998. Other SAARC Foreign Ministers, ASEAN and SAARC officials and the Secretaries-General of ASEAN and SAARC were also in attendance. At the meeting, it was agreed that ASEAN-SAARC Foreign Ministers would meet annually in New York. The two sides also agreed to coordinate their positions on WTO matters through their representatives in Geneva.

ASEAN agreed to share with SAARC its experience on economic cooperation, particularly in setting up the ASEAN Free Trade Area. The Secretaries-General agreed to work closely together at the Secretariat-to-Secretariat level to undertake cooperation activities. Both of them were active in the Consultative Meeting among Executive Heads of Sub-regional Organizations and ESCAP.

The Foreign Ministers of ASEAN and the Gulf Cooperation Council met in New York on 28 September 1998 to exchange views on areas of interest and explore possible areas of cooperation.

At the initiative of the ASEAN Ambassadors and Chief of Missions in Riyadh, the ASEAN Standing Committee agreed in February 1999 on the establishment of the ASEAN Riyadh Committee. This development is expected to enhance the cooperation between the two regional organizations.

The Foreign Ministers of ASEAN and the Rio Group met in New York on 21 September 1998 to exchange views on issues before the United Nations General Assembly.

The Secretaries-General of ASEAN and the South Pacific Forum met in Kuala Lumpur in November 1998. Both of them were observers in APEC. Forum members were keen to learn from the ASEAN experience in taking collective actions to complement national efforts of its members to cope with the impact of the crisis and bring about recovery. The Forum would host the Fifth Consultative Meeting among Executive Heads of Sub-regional Organizations and ESCAP in Suva in the last quarter of 1999.

ASEAN and the ADB cooperated actively in a regional technical assistance programme worth about US$1 million to enhance ASEAN's capability to combat forest fires and cope with the transboundary haze. The year in review saw a new programme to assist ASEAN in establishing the ASEAN Surveillance Process and build up the technical capability of the ASEAN Secretariat's ASEAN Surveillance Coordinating Unit. The ASEAN Surveillance Process would serve as an early warning system to help safeguard against a recurrence of the crisis.

ASEAN and Hanns Seidel Foundation have agreed to cooperate to develop an ASEAN Environmental Education Action Plan. The Foundation has also been active in providing assistance to the ASEAN Secretariatís training programmes for new members of ASEAN in the implementation of the ASEAN Free Trade Area and the liberalization of trade in services.