1. During the period under review, further progress was observed in ASEAN-EC relations. Both sides noted the increase in EC-ASEAN trade and investment. The recent dynamic changes which are taking place in Europe as well as in Asia Pacific in general and in ASEAN in particular make it necessary for both sides to further strengthen the existing good relations by reviewing the existing ASEAN-EC cooperation agreement to reflect new conditions and priorities in both regions.
   
   
2. At the 9th ASEAN-EC Ministerial Meeting in May 1991 ASEAN forwarded the following four new proposals to give new directions and thrust to ASEAN-EC relations :
   
   

    a.	 the establishment of a  consultative mechanism  to resolve trade  issues and to avert trade disputes;
   
    b.	 the   establishment   of a comprehensive plan of action to identify and to  promote   industrial    complementarities
   	 between ASEAN and the  EC;
   
    c.	 participation by ASEAN in the Europe-based   research  and development  on new   technologies  which are  capable  
   	 of being  commercialized   and now  being undertaken    under the EC programmes   open  to   some third  countries;  and
   
    d.	 the involvement of the European Investment  Bank and other financial institutions in  financing the projects of ASEAN
   	 public and  private sectors as well  as   ASEAN-EC   joint ventures.
   
   

3. In response to the above, preparations are currently underway to renegotiate the existing ASEAN-EC Cooperation Agreement in order to develop a new (Third Generation) ASEAN-EC Cooperation Agreement to broaden and deepen the scope of cooperation, taking into account both changes in Europe as well as in ASEAN.
   
4. In a statement on the 4th ASEAN Summit decision, the EC side, among others, stated that the Community and its member states welcomed the move toward an ASEAN Free Trade Area through a programme of tariff reduction (CEPT). They believed that the Summit has opened up promising political perspectives i.e. the internal strengthening of ASEAN and its opening towards the neighboring countries of South East Asia give hope for the emergence of a strong new pole of stability in Asia, in the context of a multipolar world.
   
5. The Community and its member states shared the wish of ASEAN members for an intensified cooperative relationship, looked forward to strengthening the dialogue process and noted with interest the proposed widening of the PMC process.
   
6. Further progress was also recorded in the development cooperation activities. The ASEAN-EC Management Centre located in Bandar Seri Begawan, Brunei Darussalam already commenced its preparatory activities since the appointment of the EC consultant to the project in early 1992. Given the task of setting up a structure for the Centre to operate as a network, the consultant has made arrangements to conduct a series of one-day workshops, one in each of the ASEAN countries. The workshops are intended for participants to discuss development options of the Centre and identify issues of interest to members that need to be taken into account in formulating the Centre's future development strategy. The following is the schedule for the one-day workshops :
   May 13,1992 - Bandar Seri Begawan
   May 15,1992 - Jakarta
   May 18,1992 - Manila
   July  24,1992 - Bangkok
   July 28, 1992 - Kuala lumpur ; and
   July 31,1992 - Singapore
   
7. Following the one-day workshop, a two-day workshop is planned for the Management and Advisory Board members in Brunei Darussalam on the 1st and 2nd of September 1992. At this workshop the new centre's operational strategy for its first three years will be finalized and an initial series of programme activities agreed upon.
   
8. Both sides also agreed to intensify cooperation on drug matters. The first ASEAN-EC Senior Officials' Meeting (SOM) on Drug Matters was convened in Bangkok on 4-6 May 1992. The Meeting reviewed the existing ASEAN-EC cooperation on drug matters and discussed the possible future areas, methods and measures of cooperation in order to optimise the ASEAN-EC cooperation in this field. As a follow up to the Meeting, EC dispatched two experts to visit ASEAN countries in June 1992 to consult with relevant authorities in paving the ground work for formulating future programmes on the control of heroin - precursor trade and training programme in drug enforcement.
   
9. Cooperation in science and technology was also encouraging with the approval of two new projects for implementation during the period under review. They are :
   
   i) Remote Sensing Improvement of Natural Resources Management and Environment Monitoring through the use of European Space Agencies ERS-1 Satellite Capabilities in ASEAN countries, and
   
   ii) Seminar/Workshop on Separation and Characterization of Fish Lipids.

For more information, please refer to the project details