Distinguished Delegates of the ASEAN countries;
Ladies and Gentlemen:

I assumed office as Minister for Foreign Affairs of Statement by Japan about a month ago. The fact that my first opportunity to make an official visit to South East Asia is to attend the ASEAN Regional Forum and this ASEAN Post-Ministerial Conference symbolizes what might be characterized as the flow of events, that is, the progress of regional cooperation. Today, I am very much pleased to have this opportunity to exchange views on a number of cooperation mechanisms existing between Japan and the ASEAN countries.

I, also, should like to express the profound respect and gratitude of Japan toward the Government of Thailand and to all those in the Government, who kindly made the arrangements for these meetings and have worked so hard and so successfully as the host country of the ASEAN Post Ministerial Conferences.

The Recent Economic Situation of the Asia - Pacific Region

Ladies and Gentlemen,

With regard to the world economy, in the developed countries, although North America is in a period of economic expansion, many countries still suffer from the effects of economic depression and serious unemployment. At the G7 Economic Summit held in Naples, jobs were one of the main problems discussed. On the other hand, the Asia-Pacific region has maintained high economic growth. Especially, the ASEAN countries, being an influential and stable factor, are expected to continue their central role in the economic growth in the Asia-Pacific region.

The economic growth in the East Asian region, including the ASEAN countries, features development linkage: Japan started first, NIES followed Japan, then ASEAN followed NIES; a process which can be referred to as "an economic development system in the style of a flock of wil geese flying together in a single file". Now, this dynamism of growth is about to spread into the Asian New Frontiers of China and Vietnam where the principles of a market economy are being introduced. I should like to say that the ASEAN countries are expected to transfer their own experiences and know-how of economic development to the countries like Vietnam.

Next, I would like to speak about the recent economic situation of Japan. Japan is still in tough economic times. Although the domestic economy seems to take a turn for the better owing to theseries of economic measures amount to 45 trillion yen, we cannot be optimistic about the economic recovery because of the rapid progress of the appreciation of the yen. To wipe out the uncertainty about the economic recovery, we intend to take necessary and effective measures by careful observance of the influence of the high yen, while paying attention to the severe fiscal situation.

The Recent Economic Relationship between Japan and ASEAN

Ladies and Gentlemen,

Trade between Japan and the ASEAN countries has been in an expansion trend since 1986 owing to high economic growth in ASEAN countries and the progress of parallel industfy specialization; this trade amount last year was 2.9 times as much as that in 1986, 83.5 billion US dollars. Japan's trade balance with the ASEAN countries are in a period of high economic growth owing to strong domestic demand; import of capital and half-finished products of the ASEAN countries has increased owing to the rapid increase of direct investment mainly from manufacturing sectors in Japan. Japan now is striving to increase domestic demand through elimination of regulations. I expect that this will definitely increase the import of finished products from the ASEAN countries, coupled with technical transfer accompanied with direct investment. I am convinced of the importance of development of reciprocally beneficial relationships in trade between Japan and the ASEAN countries.

Direct investment of Japan to the ASEAN countries has been decreasing since 1990 mainly because of Japan's ebonomic slowdown. However,the ration of direct investment of the ASEAN countries to the total direct investment of Japan is on the increase. Given the fact that Japan's direct investment has remarkably contributed to the promotion of exports and technical transfer and the development of the industrial structure in the ASEAN countries, I would also expect the ASEAN countries to promote a greater relaxation of restrictions on foreign investment and to prepare better circumstances for investment in terms of industrial infrastructures by your own efforts.

As for economic cooperation, in June 1993 Japan formulated the Fifth Mid-Term Target of official development assistance, which totals 70 to 75 billion US dollars. Japan would expand the opportunity of policy dialogue with the recipient countries so as to implement an assistance policy conforming to the needs of each country. We intend to offer appropriate cooperation corresponding to different development stages and the needs of each ASEAN country.

The ASEAN countries are aiming at strengthening regional cooperation through the establishment of AFTA. Japan is confident that the closer intra-ASEAN economic relationship will surely have a positive effect on the world economy as well as on ASEAN itself. Japan expects AFTA to maintain and fortify the multilateral free trade system while keeping consistency with GATT.

Japan highly values the Japan-ASEAN Forum, which was established in 1977 to discuss economic issues and economic cooperation between Japan and ASEAN at the official level. The Forum has played an important role in the build-up of a closer economic relation ship between Japan and ASEAN.The Thirteenth Japan-ASEAN Forum Meeting was held in Tokyo last February at the vice-ministerial level Following upon the Japanese proposal at the previous Post-Ministerial Conference, extensive policy dialogue was conducted at this meeting on political and security issues, in addition to economic issues and economic cooperation. This meeting is scheduled to open in Bangkok later this year. Japan hopes to make more positive use of the Japan-ASEAN Forum as an opportunity for extensive policy dialogue between Japan and ASEAN.

The ASEAN Promotion Center on Trade, Investment and Tourism, which Japan and the ASEAN countries established in 1981, is conducting a variety of activities in order to promote trade, investment and tourism between Japan and the ASEAN countries. The center is planning to hold an ASEAN Fair under the title of "Japan-ASEAN Cooperation toward the 21st Century" in September 1995. We hope the relationship between Japan and ASEAN should be further strengthened at the private level as well as the government level. The Government of Japan would like to give all the support possible with cooperation from the ASEAN countries.

Problems of the Japan-ASEAN Relationship Into the Future

It is necessary to take appropriate measures against growth-restrictive factors in order to keep the Asia-Pacific region on the track of well balanced high growth.

For sustainable economic growth, it is indispensable to strengthen the industry basis, to foster supporting industries, and to develop the industrial structure. The ASEAN countries are expected to take measures to prepare better circumstances suitable for direct investment and technical transfer and to improve technical standards. Japan is willing to cooperate with them in the fields of technology and financing.

The constant supply of funds in the long run is very important for further development of the Asia-Pacific region. Japan intends to contribute to the development of the region through recognized means such as official development assistance. I hope the ASEAN countries will promote the accumulation of capital and a constant supply of development funds by establishing a sound financial system.

Since lack in human resources is a crucial impediment to economic development, the ASEAN countries are expected to build up the education system to foster and supply necessary skills to their economies to the best of their own efforts. Japan intends to help develop human resources by accepting trainees and students.

Japan-ASEAN Relationship in Various Fields Japan would emphasize the build-up of firm relationships in cultural and personnel exchange as well as focus on economic issues and economic cooperation for the purpose of creating an even stronger and steadier friendship and mutual trust with the ASEAN countries. In this field, several programs realized by initiatives of Japanese prime ministers, such as the ASEAN Cultural Fund, the Japan Scholarship for ASEAN Youth and the ASEAN-Japan Friendship Programme for the 21st Century, have been conducted with fruifful results. Especially, over six thousand promising young people from the region have participated in exchange activities with their counterparts from other nations thanks to the Japan Scholarship for ASEAN Youth. As for the ASEAN-Japan Friendship Programme for the 21st Centuiy, every year eight hundred young people from the ASEAN countries have been invited to forge mutual understanding and mutual trust through various activities with Japanese youth since 1984.

Japan intends to establish even firmer friendship and mutual trust between Japan and the ASEAN countries through the cooperative and effective management of these programmes.

Ladies and Gentlemen,

The ASEAN region is an excellent instance of regional cooperation that has achieved remarkable success. I am sure that the development of the ASEAN countries results from the abundant diversity and remarkable openness of this region.

I am very much encouraged to see such a strong confidence and firm intention to keep playing a central role in the development of the Asia-Pacific region in the words of the leaders of the ASEAN countries. I am convinced that it is an important mission for the Japan-ASEAN relationship to contribute to world peace by making the Asia-Pacific region even more stable and prosperous.

Japan will be "a friend of ASEAN walking together side by side", toward a future in which the whole international community beyond the region can be viewed in perspective.

Thank you.