Signing of the Letter of Intent
The ASEAN-UNDP Sub-Regional Programme - Sixth Cycle (ASP-6)
24 July 1998
3lst ASEAN Ministerial Meeting
Manila, Philippines

H.E. Mr. Domingo L. Siazon, Jr.
Secretary of Foreign Affairs of the Philippines,

Dr. Nay Htun, Assistant Administrator of UNDP,
ASEAN Directors-General,
Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,

As we gather here for the signing of the Letter of Intent between ASEAN and UNDP for the Sixth Cycle of the ASEAN-UNDP Sub-Regional Programme or the ASP-6, I look back and express my deepest appreciation for the development cooperation assistance which the UNDP has continuously provided to ASEAN. ASEAN and UNDP's long-standing relations began almost immediately after ASEAN's birth in 1967. In the early 70's, the relationship assumed a more tangible form when the UNDP sponsored a study involving 41 international experts to assist ASEAN with its first economic cooperation initiatives. The Kansu Report, which emanated from this study, provided the basis for ASEAN's subsequent cooperation in industrial development, agriculture and forestry, transport, finance, monetary affairs and insurance services. In 1977, UNDP was officially designated as a Dialogue Partner of ASEAN. ASEAN-UNDP ties were further strengthened with the launching of the ASEAN-UNDP Sub-Regional Programme in 1990, which aimed to assist ASEAN more effectively with its regional cooperation and integration efforts.

Over the years, UNDP has proven itself worthy of the ideals it stands for, providing development assistance with no conditionalities. It has been one of ASEAN's steadfast partners, displaying sensitivity to ASEAN's needs and adopting the flexibility needed in ASEAN's development programmes. UNDP's sensitivity to ASEAN's needs and its flexibility in designing development assistance programmes for ASEAN are best demonstrated through the ASP-6. It may be recalled that the goals and framework for the ASP-6 were agreed at the ASEAN-UNDP Dialogue Meeting in October 1996, a time when the depth of the financial crisis was anticipated only by a far-sighted few. With the shift in focus to the financial crisis, the ASP-6's immediate goals are to assist ASEAN in developing and implementing timely sub-programmes for promoting ASEAN's economic recovery and dealing with the social problems arising from the economic situation in the region.

ASEAN's enlargement after 1996 and the need to expedite the full participation of its new member countries in ASEAN's cooperation schemes like ASEAN Free Trade Area, ASEAN Industrial Cooperation, ASEAN Investment Area and the ASEAN University Network have also been given consideration. Thus, the ASP-6 will now cater to five clusters:

• Enabling Economic Mechanisms and Reforms to Promote ASEAN Economic Recovery;
• Environment and Natural Resources Management;
• Human and Social Capital and Capacities;
• Assistance to New ASEAN Member Countries in Integrating into ASEAN's Major Schemes; and
• Institutional and Capacity Development.

Today's signing of the Letter of Intent marks another milestone in the special partnership between ASEAN and the UNDP. The advent of ASP-6 coincides with ASEAN's growing needs in coping with the financial crisis, assimilating its new members, and providing safety nets, which will cushion the impact of the financial crisis not only on the newly unemployed but also on those already marginalized even before the financial crisis.

In a few months, the 6th Summit of the ASEAN Heads of Government will take place. As we take stock of the progress made since the 5th Bangkok Summit of 1995, we see the extent to which the financial crisis has set back the realisation of the dreams that our ASEAN Leaders enunciated in the Bangkok Declaration of 1995. At the same time, on the strength of that analysis, we remain confident that ASEAN will emerge stronger because of this.

The awesome economic and social impact of the financial crisis has made it clear to ASEAN that the response to the global challenges should be greater region integration and cooperation. The US$ 6 million which will be made available through the ASP-6 will certainly help in achieving these objectives. It is, therefore, with deep appreciation for UNDP's support and hope for closer cooperation with UNDP that I sign this Letter of Intent on behalf of ASEAN.