Excellency,

0n behalf of my ASEAN colleagues, it gives me great pleasure to welcome you and the members of you, delegation once again to our annual meeting. I would like to take this opportunity to thank all of you who have participated in the series of Meetings that have preceded this final Session. The information we have shared thus far should enable us to further enhance the progress made in the excellent relations between ASEAN and Japan.

ASEAN-Japan, relations continue to be strong and vibrant, thus contributing to the peace, prosperity and economic development of the Southeast Asian region as . whole. This relationship has developed on the basis of partnership, equality and mutual benefit for the peoples of the ASEAN countries and Japan. It has evolved to be an important factor for Japan's economic growth as well . ASEAN's steady and healthy development towards the twenty-first century.

The 14th ASEAN-Japan, Forum held in Bangkok (18-19 January 1995) marked another milestone in ,he ASEAN-Japan Dialogue. A wide range of issues covering international, regional and bilateral matters of mutual concern and interest were actively discussed at the Forum. The inclusion of political and security issues in its agenda, the participation of Japan and ASEAN Senior Officials and the presence of members of the ASEAN private sector at the Forum are good indicators of the dynamism of the ASEAN-Japan Dialogue.

On the basis of close cooperation and mutual understanding, the ASEAN-Japan relationship is progressing satisfactorily amidst rapid changes in the region and the world at large. ASEAN in encouraged by the vertical and horizontal consolidation of its dialogue with Japan, commensurate with the expansion of ASEAN's cooperation and its deepening economic integration, as well as Japan's adjusted role in the international arena, especially in the Asia-Pacific region.

The participation of the ASEAN countries and Japan in the Asia-Pacific Economic Cooperation (APEC) Forum has reinforced the ASEAN-Japan Dialogue. ASEAN fully supports the APEC objectives of working towards more open trade and greater economic cooperation in the Asia-Pacific region, in accordance with the principles of GATT and its successor, World Trade Organizational (WTO). ln this connection, Japan's efforts to submit an action, plan, to actualise, step-by-step, the vision set out last November in the Bogor Declaration will be carefully considered by ASEAN. It will be a challenging task for Japan to produce a balanced package, covering trade and investment liberalisation and facilitation together with economic and technical cooperation. In the process of formulating this package in Osaka, ASEAN hopes that Japan would seriously take into consideration the differences in the level of development of the APEC member economies.

In a wider context, ASEAN and Japan should continue to work closely to ensure that smooth and correct functioning of the WTO as the pillar of an open, multilateral trading system. New issues such as labour standards, human rights and environment protection should be discussed only at the appropriate fora, and not be linked to international trade. The rationale and effects of a linkage could lead to trade restriction and distortion, which would be detrimental to the economic development of the majority of the WTO member states. ASEAN strongly urges Japan and her major trading partners to adhere consistently to the multilateral negotiations and the principle of transparency in solving their trade disputes. Any inclination towards bilaterally managed trade is undesirable as it could erode the principles and the functioning of the WTO. Japan,, as an economic super power, has an important role to play in discouraging such unfavourable tendencies.

ASEAN is ready to discuss with Japan concrete measures aimed at solving the persistent trade deficit problems between them. ASEAN urges Japan to pursue further economic deregulation, improvement of market access for ASEAN exports and more Japanese direct investment in this region. The ASEAN Free Trade Area (AFTA) and the effects of the yen's appreciation should stimulate greater flows of Japan's industrial investment to the ASEAN countries, reversing its downward trend in recent years. Transfer of technology and managerial skills should be the key components of direct investment from Japan

ASEAN welcomes Japan's keen interest in providing development assistance to the countries of Indochina. ASEAN is ready to cooperate closely with Japan in assisting Cambodia, Laos and Vietnam in their developmental efforts through more trilateral programmes, in addition to existing activities such as the Forum for Comprehensive Development in Indochina (FCDI) and Working Group on Economic Cooperation in Indochina.

In welcoming a ,ore policy-oriented approach to the ASEAN-Japan Dialogue, ASEAN has always urged Japan to respond positively to the existing ASEAN-Japan cooperation programmes in the fields of trade, investment, industry and cultural exchanges. These programmes are designed to lay a solid foundation for the long-term cooperation, among the private sectors and the peoples of both sides. ASEAN- Japan development cooperation significantly contributing to the social and economic progress of ASEAN, should continue to encompass the fields of science and technology, human resources, agriculture and forestry, transportation, finance and banking, ad academic research. ASEAN has proposed to enhance cooperation with Japan especially in the fields of environmental management and social development. It earnestly hope., that Japan would be more responsive to ASEAN's proposals.

ASEAN considers its cooperation with Japan in the field of cultural exchanges a major pillar of ASEAN- Japan Dialogue. The ASEAN Cultural Fund, the Japan Scholarship for ASEAN Youth, the Japa~n- ASEAN Friendship Programme for the 21st Century and the ASEAN-Japan Exchange Project are excellent vehicles for cultivating trust and understanding among the peoples of the ASEAN countries and Japan. These programmes should be carefully evaluated in order to ensure that their objectives are suitable for the characteristics of our interaction in the next century.

In conclusion, ASEAN and Japan have long enjoyed a constructive relationship on a wide range of issues of mutual interest. ASEAN and Japan have successfully conducted the dialogue n the basis f mutual respect and understanding. We have widened the scope of our discussions, hoping that it would be beneficial to both sides and to the Asia-Pacific region as a whole. ASEAN welcomes Your Excellency's policy, announced last year in Bangkok, that Japan would be "a friend of ASEAN walking together side by side". I wish to reiterate that ASEAN has never taken this strong relationship for granted but always looks for meaningful improvement of the dialogue. l am therefore confident that ASEAN and Japan will continue to enjoy this channel of communication in the spirit of partnership and equality, in order to promote further the mutual and long-term interests of ASEAN and Japan.

Thank you, very much.