Excellencies,
Ladies and Gentlemen,

It gives me great pleasure, on behalf of my ASEAN colleagues, to welcome His Excellency the Foreign Minister of Spain, Mr. Javier Solana, and His Excellency the Vice-President of the European Commission, Mr. Manuel Marin, to Brunei Darussalam on the occasion of the 28th ASEAN Ministerial Meeting/ Post Ministerial Conferences. I am happy to note that the EU is represented by the Troika comprising France, Spain, and Italy.

ASEAN also has its own "Troika" comprising His Excellency Mr. Domingo L. Siazon, the Secretay for Foreign Affairs of the Philippines, His Excellency Mr. Kasem Kasemsri, the Foreign Minister of Thailand and myself, We represent the past, current and future country coordinators of the ASEAN-EU dialogue.

ASEAN and the EU established formal ties in 1977. That would make our dialogue 18 years old this year. During this period the ASEAN-EU dialogue has matured with substantive exchanges between the two sides becoming the norm.

The 11th ASEAN-EU Ministerial Meeting in Karlsruhe, Germany, was an undisputed success. ASEAN and the EU were determined that the dialogue should be carried out in, a frank, friendly and non- confrontational manner. I am glad that the "Spirit of Karlsruhe" has caught on. At the Inaugural ASEAN- EU Senior Officials Meeting held in Singapore in May 1995, there were wide ranging and constructive discussions on regional political and security issues, and the international and regional economic situation. Each side was able to share with the other its concerns and pre occupation's in an atmosphere where there was a genuine willingness to listen and appreciate each other's points of view. ASEAN is determined to ensure that this spirit of cooperation and understanding will continue to be present at all future meetings.

Over the next few months, ASEAN and the EU have another opportunity to break fresh ground in our maturing relations. The Asia-Europe Meeting (or ASEM) will bring together leaders from Europe and Asia. It is remarkable that the concept of this landmark meeting was agreed to so quickly. Its endorsement at the highest level is evidence of the impotence both sides give to the need to forge closer ties between, Europe and Asia. A successful meeting among our heads of Government will lay the groundwork for the greater intensification of ties between our two regions. Our cooperative effots over the next few months will be critical in ensuring that the ASEM builds greater understanding and rapport between the leaders from, Europe and Asia. We look forward to bringing this idea to fruition.


Trade and Investment

While Government officials from both ASEAN and the EU have recognized the importance of the links between our two regions, it is the private sector that must drive our economic relations. I am, happy to note that trade between, ASEAN and the EU has been growing steadily, and reached US$ 71 billion in 1994. Last year, the EU's imports from ASEAN countries surged by 33.1 % over 1993 to reach US$ 41.8 billion (31.4 billion ECU). The EU's exports to ASEAN also grew by 11.9% over 1993 to reach US$ 29.9 billion (22.5 billion ECU). These are not insignificant figures. ASEAN has a population of 420 million today. 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.

While trade is expanding, the statistics on European investment in ASEAN are not encouraging. Between 1991 and 1993, the EU's total direct investment in ASEAN countries fell by more than 40%. ASEAN is concerned by this fall in investment. Over the last two decades, ASEAN had undergone phenomenal growth. This buoyant economic growth in ASEAN has opened numerous opportunities for investment and inputs of technology. Despite the close historical links which Europe shares with Asia, Europe has been slow to seize these opportunities.

ASEAN and the rest of the region will continue to pursue their rapid industrialisation drive. Countries like Vietnam are newcomers but have embarked on programmes to open up their economies. The rest of the ASEAN countries are upgrading their industries. The high demand for new investment and technology flow into the region has not diminished. ASEAN is also a convenient link and stepping stone for European companies and entrepreneurs wishing to expand their operations into the emerging economies of the Asia- Pacific region. ASEAN welcomes European investment and participation in the on-going transformation of the region. As the region becomes more affluent, this in turn will have a major impact on the European economy. The growth in, this region will not only increase export opportunities for Europe but also create new jobs in Europe, as the demand for capital equipment and infrastructure development grows.

As our two regions work towards building stronger links in political, security and fuctional cooperation, it is our private sector that must continue to be the main- stay of our relations. We cannot slacken efforts to encourage greater contact between the private sectors of our two regions. Some suggestions we would like to put before you are the possibilities of joint vertures in third countries, and the exchange of information between businessmen from our two regions through business conferences and information, centers.


Functional Cooperation

ASEAN and the EU have already worked jointly on areas such as the management of sustainable forests and timber technology, and the effective use of energy resources, among others. The transfer of advanced technology from Europe for these endeavors is greatly valued by the ASEAN countries. We understand that with the implementation of the 4th Framework Agreement, future assistance from the EU will be in the form of co-financing arrangements. This is to ensure that the joint ventures that ASEAN and the EU embark on are commercially viable, and are capable of becoming financially self-sustaining. This approach is again a manifestation of our maturing relationship.

People-to-people contacts between the two regions is another facet in the holistic relationship that is developing between ASEAN and the EU. We can work towards building greater people-to-people contacts through tourism promotion and cultural exchanges. Building links between our educational and research institutions will also promote greater mutual awareness and empathy for each other.


Conclusion

In conclusion, I am happy to report that the dialogue between ASEAN and the EU is maturing well. Progress has been achieved in political, economic and functional cooperation. The task ahead will be to ensure that we continue to deepen and broaden, the foundations of the ASEAN-EU relationship. We must strive to institutionalise the atmosphere where we can discuss potentially contentious issues sensitively and without acrimony. And, we must develop programmes of activities that will enhance the cooperation between our two regions to achieve mutual growth and prosperity.

As Country Coordinator, Singapore has enjoyed the full cooperation of Germany and France in moving the Dialogue ahead. We look forward to working closely with Spain and the future EU Presidencies to bring the dialogue to an even higher plane.