1. On behalf of my ASEAN colleagues, I extend a warm welcome to His Excellency the Foreign Minister of Ireland, Mr Richard Spring, who leads the EU Troika of Italy, Ireland and the Netherlands and His Excellency Vice-President of the European Commision, Mr Manuel Marin, to Jakarta on the occasion of the 29th ASEAN Ministerial Meeting/Post Ministerial Conferences.

2. This is the first time that we are having the 7+1 session after breakfast. I think it is symbolic because we are preparing for a new phase in ASEAN-EU relations. We are at an important threshold in our dialogue relations. Next year will be the 20th year of the ASEAN-EU dialogue. During the last two decades, both ASEAN and the EU have seen dramatic changes both within and without. The collapse of the communist regimes in Eastern Europe have changed the face of Europe. Like ASEAN, the EU is set to expand, bringing in countries of Central and Eastern Europe. A "borderless" Europe is slowly becoming a realiy. Next year, Laos and Cambodia will become members of ASEAN bringing us closer to the vision of an ASEAN encompassing all the Southeast Asian countries. Amid these changes, I am happy to say that we have laid the foundations for a successful partnership marked by mutual understanding and close cooperation.

3 On the eve of our 20th anniversary, we must now reflect deeply on how ASEAN and the EU can face the next 20 years together. As ASEAN's oldest dialogue partner, we are grateful for the significant contributions that the EU has made. Given our location, ASEAN is a convenient link and stepping stone for European companies and entrepreneur wishing to expand their operations into the dynamic economies of the Asia-Pacific region, I need not go into detail on how ASEAN and the rest of the Asia-Pacific region are now enjoying remarkable economic growth which is expected to continue well into the next century. Growth rates in the EU may be less spectacular than those of ASEAN, but they must be seen in relation to an already high base of wealth and technological sophistication in manufacturing and services.

ASEM

4 One opportunity that we seized was the first ASEM in Bangkok in March this year. Its very success raised concerns that ASEM could now eclipse the significance of ASEAN-EU relations, I believe these concerns are unfounded for several reasons. First., ASEAN-EU relations have been tried and tested over the last nineteen years. They have a strong foundation. Second, there are many initiatives and cooperative projects that are best pursued at the ASEAN-EU level, where a broad level of understanding and high comfort level exist. These projects are more difficult to pursue in the wider Asia-Europe forum due to the complex nature of relationships in that forum. Finally it is worth reminding ourselves that the ASEAN-EU relationship was the springboard for ASEM. Without the well-oiled ASEAN-EU link., it would not have been possible to get ASEM off the starting block in such a short time. The ASEAN-EU dialogue is a vital forum where ideas are seeded, developed and implemented. Some of these initiatives would eventually be expanded into the broader ASEM process, but not at the expense of the special relationship between ASEAN and the EU.

11th AEMM in Karlsruhe

5 Our relationship was not always this warm. For a period, the ASEAN-EU relationship seemed to lack direction. Thankfully, that period is behind us now. This was due in no small measure to the success of the 11th ASEAN-EU Ministerial Meeting in Karlsruhe in 1994, A significant achievement of that Meeting was our decision to form an Eminent Persons Group (EPG) with representatives from both regions to look into the future of ASEAN-EU relations.

The EPG Report

6 The EPG recently finished its work. Its report titled "A New Strtegy for a New Partnership" was submitted to the ASEAN and EU Foreign Ministers last month. I would like to extend my appreciation to the members of the EPG for their efforts in proposing several solid recommendations to move ASEAN-EU relations to a new plane. Ideas to support the multilateral trading system, the importance of enhancing regional and global security and intensive engagement at all levels between our teo regions are worth exploring. It is now for us and our officials to carefully study these recommendations and look into how they can be implemented.

7 I understand that the European Commission, under the capable leadership of Vice-President marin is also working on a strategy paper on "Creating a New Dynamic in EU-ASEAN Relations". The EC's earlie "Asia Strategy Paper" brought a sea-change in the way the EU approached Asia. I am optimistic that the recommendations that are being formulated in Vice-President Marin's initiative will chart a clear vision to take the ASEAN-EU dialogue well into the 21st century.

12th AEMM in Singapore

8 An excellent launching pad for our shared vision of the 21st century is the 12th ASEAN-EU Ministerial Meeting in Singapore in February 1997. We will then celebrate the 20th anniversary of our relations. Between now and February 1997, our officials will have to work hard on the EPG recommendations as well as the EU's ASEAN strategy so that we can kick-off on these initiatives. Only then can we presume that the "Spirit of Karlsruhe" thrives as we enter a new millennium.

Mr Co-Chairman,

Trade and Investment

9 As we prepare for the next millennium, we can be sure that Trade and Investment will remain a key pillar in ASEAN-EU relations, I am glad to note that trade between ASEAN and the EU has been growing steadily and has reached US$86 billion in 1995. These are not insignificant figures. But the potential for further expansion remains. With the implementation of the ASEAN Free Trade Area (or AFTA) and the inclusion of new members in AFTA, the potential for trade, both within ASEAN and between ASEAN and other regions, is enormous. The EPG has recommended several trade facilitation measures. One significant proposal to strengthen government cooperation on economic issues is to have regular meetings between the relevant Ministers responsible for economic relations and the European Commission. We should serious ly look into this recommendation.

10 Being major global trading entities, we both share a common interest in ensuring the stability and openness of the world trading regime. ASEAN and the EU must therefore cooperate to ensure a successful and substantive outcome of the WTO Ministerial Conference (MC) to be held in Singapore in December 1996. A meaningful outcome of the WTO MC will provide the underpinnings to further strengthen economic links between the two regional groupings. One idea we can boldly pursue to enhance trade and investment flows between ASEAN and the EU is the possibility of an AFTA-EFTA link.

Private Sector Cooperation

11 The private sector is the engine that drives the trade and investment component of ASE-AN-EU relations. ASEAN is happy to cooperate with EU to convene the ASEAN-EU Partenariat which is scheduled to take place simultaneously with the 12th ASEAN-EU Ministerial Meeting in February 1997. The presence of an estimated 600 businessmen during the AEMM in Singapore will send a strong signal on how governments can cooperate to help businessmen. The EPG too was alive to this need for private sector level cooperation and has called for the establishment of a strong and effective ASEAN-Europe Business Council. Here again is a gem of an idea that can be built upon.

Conclusion

12 In conclusion, I am happy to note that we have made significant strides in all areas over the last two decades. Our next challenge will be to ensure that we continue to deepen and broaden the foundations of the ASEAN-EU relationship to face the challenges of the 21st century. The EPG Report and the EU's ASEAN strategy, I am sure, will play no small part, With the preparations underway for the 12th AEMM, we have that opportunity to prove our detractors wrong - ASEAN-EU relations will not thrive in spite of ASEM, but rather ASEM will thrive because of the ASEAN-EU links.